ACADAMIC YEAR 2019-2020

AN INTEGRATED CIE REPORT ON

HERO MOTOCORP LTD.

For Courses
105 Basics of Marketing,
106 Digital Business,
114 EADR
115 Selling & Negotiations
By
Student 1: Nachiket Neve ( SIMMC B).
Student 2: Priyanka Bhavsar (SIMMC A).
Student 3: Aniket Thorat (SIMMC B).
Student 4: Roshan Chandlekar (SIMMC A).
Student 5: Rushikesh Kasar (SIBMT)
Student 6: Rashmi More (SIBMT).

1
 CANDIDATES DECLARATION
We the undersigned hereby declare that the project report on Mahindra farm equipment(
Agriculture equipment) which is been submitted as an integrated project of MBA Sem I to
Suryadatta Group of Institutes is an authentic record of our genuine work done under the
guidance of Professors of Enterprise Analysis Desk Research , Selling & Negotiations Skills
Lab, Basics of Marketing & Digital Business.
We assert the statements made and conclusions drawn are an outcome of our research work.
We further certify that
I. The work contained in the report is original and has been done by us under the general
supervision of the faculty members.
II. We have followed the report guidelines provided by the institute in writing.
III. We certify that this report is our own work, based on our study and/or research. We have
acknowledged all material and sources used in its preparation, whether they be books, articles,
reports, lecture notes, and any other kind of document, electronic or personal communication.

Date:-
Place: PUNE

Students Name:
1) Nachiket Neve (SIMMC B ).
2) Priyanka Bhavsar (SIMMC A)
3) Aniket Thorat (SIMMC B ).
4) Roshan Chandlekar (SIMMC A)
5) Rushikesh Kasar ( SIBMT )
6) Rashmi More (SIBMT).

2
 ACKNOWLEDGEMENT
This project contains imprints of all those who had directly or indirectly helped us
and give kind support in completing this Mega CIE. At the same time of preparing
this report. We express our sincere thanks to all of them.
We would special thanks to Prof.Dr.Pratiksha Ma’am(Subject Teacher) ;Mr.
Harshad sir(Subject Teacher).Who had spend their valuable and precious time for
completion of this report at every stage their knowledge, experience and guidance
is very valuable, Also Prof.Dr.Huma Ma’am and who had given us valuable
information in Digital Business, Marketing and Selling & Negotiation in Mega
CIE.
We would like to thank all above respected teachers for guidance and for
successful completion of these project and preparing report.

Date:-
Place: Pune. MBA Semester

3
Photos and Signatures:

Priyanka Bhavsar Aniket Thorat (SimmcB )

Nachiket Neve (SIMMC B)
(SimmcA)

Roshan Chandlekar Rashmi More (SIBMT)

Rushikesh Kasar (SIBMT )
(SIMMC A )

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 INDEX
Chapter. Chapter Title Contributing member Page No.
No. of the Group Mention
name against each row

1 Enterprise History & Background Aniket , Priyanka 1-16

2 Organizational Details Nachiket 17-23

3 The Brand Journey Roshan , Rashmi 24-39

4 Competition analysis Roshan , Aniket 40-47

5 Financials of the organization Nachiket 48-62

6 Markets & Marketing Priyanka , Roshan 63-73

7 Digital side of the business Rushikesh , Aniket 74-78

8 Key findings / observations & learning’s Nachiket , Rashmi 79

from the tasks carried out (SWOT)
9 Conclusion Nachiket , Rashmi 80

10 References All 81

11 Formatting all report, Index, Certificates, Nachiket

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 LIST OF FIGURES
Figure No. Figure Title Page No.

1 organization structure of hero Motocorp 18

2 Global Foot Print 20

3 Manufacturing Location 23

4 Product Mix 26

5 Marketing Mix 28

6 Price Of Product 38

7 Brand Ambassador 39

8 Unique 41

9 Competitors 43

10 Market share 44

11 Location 46

12 Total sales volume 47

13 Last five years revenue 48

14 Profitability 49

15 Market capitalization 50

16 Share price face value 56

17 Current market value 57

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18 Annual high low figure 58

19 Market share top 5 player 63

20 Promotion in marketing mix 67

21 Micro environment 69

22 Macro environment 71

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 1.Enterprise History & Background
Hero Motocorp Ltd
Hero MotoCorp Ltd.(Formerly Hero Honda Motors Ltd.) is the world's
largest manufacturer of two - wheelers, based in India. 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.

Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and
an empowered India, powered by its two wheelers. 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.

8
 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.

Philosophy :-
Excellence in quality is the core value of Hero MotoCorp philosophy. We
are committed at all levels to achieve high quality in whatever we do,
particularly in our products and services which will meet and exceed
customer's growing aspirations through: Innovation in products, processes
and services.

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 Value Quality Policy :-
A company that believes in maintaining ecological standards along with
business standards. "We must do something for the community from whose land
we generate our wealth."Chairman Dr.Brijmohan Lall Munjal. At Hero MotoCorp,
our goal isn't limited to business but encompasses the broader spectrum of serving
humanity through social initiatives. Hero MotoCorp takes a stand as a socially
responsible enterprise respectful of its environment. Hero MotoCorp has been
strongly devoted not only to environmental conservation programs but also
expresses the increasingly inseparable balance between economic concerns,
environmental and social issues faced by business. A business must not grow at the
expense of mankind but must serve humankind at large.

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.

Manufacturing
Hero MotoCorp two wheelers are manufactured across 4 globally
benchmarked manufacturing facilities. Two of these are based at Gurgaon and
Dharuhera which are located in the state of Haryana in northern India. The third
and the latest manufacturing plant is based at Haridwar, in the hill state of
Uttrakhand.

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 DISTRIBUTION
The Company's growth in the two wheeler market in India is the result of an
intrinsic ability to increase reach in new geographies and growth markets. Hero
MotoCorp's extensive sales and service network now spans over to 6000 customer
touch points. These comprise a mix of authorized dealerships, service & spare
parts outlets, and dealer-appointed outlets across the country.

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ABOUT THE CHAIRMAN

Brijmohan Lall Munjal – Seeding a Dream

"Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is
often fond of saying. The founder and patriarch of the $ 2.8 billion Hero Group is
your classic first generation entrepreneur. He is a man who started small, dreamt
big and used a combination of grit and perseverance to create one of the country's
largest corporate groups and the World's No.1 Two Wheeler Company.
Instinctive from a young age, Brijmohan Lall made a rather unusual start in life.
Around the time when the freedom movement in India was taking shape in the late
1920s, he walked into a newly opened Gurukul (Indian heritage school) near his
home in Kamalia (now in Pakistan). He was only six years old then.
Thus began an extraordinary tale of courage and perseverance. Brijmohan began
his business story after partition in 1947, when he and his brothers relocated to
Ludhiana. The family set up a company that provided poor people with basic
transport (cycles). Three decades later, as India evolved, he added a second crucial
chapter - which visualized affordable and technologically superior transport to
millions of middle class Indians. The rest is history.

Building Relationships
When Brijmohan and his brothers started out, there was no concept of organized
dealer networks. Companies just produced, and most dealers functioned like
traders. Brijmohan changed the rules of the business by trusting his gut instincts;
introducing business norms that were ahead of their time, and by investing in
strategic relationships. Brijmohan built a series of bonds and networks with
hundreds of family members, vendors, dealers and employees. Much like the

12
Japanese keiretsu system, these networks are now the glue that holds the Hero
Group together.
"Thanks to the relationships that we have nurtured so passionately in the
Hero Family, the younger generations of some of our bicycle dealers have become
dealers of Hero Honda. These relationships have survived through generations -
through bad times and good times'' the patriarch now reminiscences.
Besides bonding with his vendors and dealers, Brijmohan has been
personally responsible for kindling a spirit of entrepreneurship amongst his
employees, and today, 40 of his former employees are successful entrepreneurs.

Founder/key person

MR. BRIJMOHAN LALL MUNJAL

DATE OF BIRTH : Jul 01, 1923 · Kamalia, Pakistan

Died: Nov 01, 2015 · New Delhi, India

Spouse: Santosh Munjal

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company
and the $ 2.8 billion Hero Group. He is the Past President of Confederation of
Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and
was a Member of the Board of the Country's Central Bank (Reserve Bank of India
). In recognition of his contribution to industry, Mr. Lall was conferred the Padma
Bhushan Award by the Union Government.

Mr. Brijmohan Lall Munjal is currently on the board of the

13
Following Companies:
Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer
based in New Delhi, India. The company is the largest two-wheeler manufacturer in the world
,and also in India, where it has a market share of about 46% in the two-wheeler category. The
2006 Forbes list of the 200 World's Most Respected Companies has Hero Honda Motors ranked
at #108.On 31 March 2013, the market capitalization of the company was ₹308 billion
(US$4.5 billion).
Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (sometimes
called Hero Group, not to be confused with the Hero Group food company of Switzerland) of
India and Honda of Japan. In 2010, when Honda decided to move out of the joint venture, Hero
Group bought the shares held by Honda, and focused on its entirely owned subsidiary, Honda
Motorcycle and Scooter India (HMSI).
In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its parent
Hero Investment Pvt. Ltd. with the automaker. This decision came 18 months after its split from
Hero Honda.
"Hero" is the brand name used by the Munjal brothers for their flagship company, Hero Cycles
Ltd. A joint venture between the Hero Group and Honda Motor Company was established in
1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group
both owned 26% stake in the Company.
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 –
Don’t forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a
double-digit pace since inception. In 2001, the company became the second largest two-wheeler
manufacturing company in India and globally. It maintains global industry leadership to date.
The technology in the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–
2010) has come from the Japanese counterpart Honda.

EDUCATION
Munjal was born in 1923 at Kamalia, district Toba Tek Singh in unpartitioned Punjab, British
India. Kamalia is now in Pakistan. He was from a simple middle-class Arora/Khatri family. After
completing his formal education, he worked at the Army Ordnance Factory, before moving his
base to India after partition.
In 1954, Hero Cycles moved up the value chain by making a shift from supplying to
manufacturing handlebars, front forks and chains. In 1956, the Punjab Government issued tender
notices for twelve new industrial licenses to make bicycles in Ludhiana. Munjal and his brothers
participated in the bid and won the contract. Hero Cycles was registered as a large-scale
industrial unit. with capital partly financed by the Government of Punjab.
In 1961, Rockman Cycles Industries was established to manufacture bicycle chains and
hubs. Under Munjal's leadership, Hero Cycles was the first company to export bicycles on such a
large scale. In 1975, the company had become the largest bicycle manufacturer in India. By
1986, Hero Cycles entered the Guinness Book of Records as the largest manufacturers of

14
bicycles in the world.

SPOUSE INFO

Brijmohan was married to Santosh and had five children: Raman Kant (deceased),
Suman Kant, Pawan Kant, Sunil Kant and a daughter, Geeta Anand. He died on 1 November
2015 in South Delhi after a short illness.

Before entering into a joint venture with the Honda Motors, Munjal started a Majestic
Auto and started manufacturing of the Hero Majestic Moped. To manufacture motor cycles in
1984, the Hero Group started a joint venture with Hero Honda and established a plant at
Dharuhera, Haryana. The Hero Group became so large that by 2002 it had sold 8.6 million
bicycles, and was producing 16,000 motorcycles a day.

RESIDENCE:-
Brijmohan Lall Munjal Was Born in 1923 at Kamalia of non-partitioned Punjab, British
India, now a part of Pakistan. He Was boom in a simple middle class family .After completing
his formal education he worked at the army ordnance factory . He Moved to India just before
india partition. He along with his family settled in Amritsar , in 1944 when Brji was 20.The
Brothers initially started a business by supplying components to manufacturers of bicycles. After
India partition the family permanently shifted to Ludhiana. Still now Ludhiana is the major hub
of production of bicycles. Slowly the munjal brothers expanded their distribution network and by
the early 1950s , they started distributing cycle parts throughout India.
EARLY LIFE
Munjal was born in 1923 at Kamalia, district Toba Tek Singh in unpartitioned Punjab, British
India. Kamalia is now in Pakistan. He was from a simple middle-class Arora/Khatri family. After
completing his formal education, he worked at the Army Ordnance Factory, before moving his
base to India after partition.

AWARD
1991
 Economic Times-Harvard Business School Award for Corporate Performance to Hero
Honda Motors Ltd.
1995

 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being ranked 9th
amongst the most investor rewarding companies in India.
 National Award for outstanding contribution to the Development of Indian Small
Scale Industry (NSIC Award - Presented by President of India).
1999

15
 National Productivity Award for the Best Productivity Award in the category of
Automobile & Tractor presented by Vice President of India.

2001

 Bike Maker of the Year by Overdrive Magazine.

 Winner of Three Leaves Award for showing Corporate Environment Responsibility in
the Automobile Sector by Centre for Science & Environment.
 Winner of the Review 200 - Asia 's Leading Companies Award (9th Rank amongst the
top 10 Indian Companies).
2002

 Bike Maker of the Year by Overdrive Magazine.

 Winner of the Review 200 - Asia’s Leading Companies Award (4th Rank amongst the
top 10 Indian companies).
 Company of the Year of ET Awards for Corporate Excellence.
 Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best
Financial Management' and 'Best Operational Efficiency' category, ranked 6th in
'Overall Best Investor Relations' category, by Asia money.
 Highest Wealth Creating Company of the Year Award by the Money.
 GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance.
2010

 Rated as Top Indian Company in Automobile - Two Wheelers sector by Dun &
Bradstreet - Rota Corporate Awards 2009
 Most Preferred Brand of Two-Wheelers" award at the CNBC Ahwaz Consumer
Awards.
 Adjudged at top of the two-wheeler category in the Brand Equity Most Trusted Brands
2010 Survey.
 Ranked No. 3 Most Trusted Brand across categories amongst Young Adult Males
 Company of the Year awarded by Economic Times Awards for Corporate Excellence
2008-09.
 CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor
2016

 Overdrive - Scooter of the Year - Hero Maestro Edge

 Overdrive - 'Viewers' Choice Scooter of the Year - Hero Maestro Edge
 Overdrive - Manufacturer of the Year (Two-wheeler) Award - Hero Monocarp
 ''Hero Good Life'' has been declared as the winner in the Category "Best Loyalty
Program in Automobile Sector"
 TIME India Awards - Manufacturing Innovator of the Year Award
 Best Executive Motorcycle - Hero Super Splendor by J.D. Power India.

16
 2017

 Hero Glamour - Commuter Motorcycle of the Year - NDTV Car and Bike awards 017
 Creative Television Commercial of the Year - Hero Monocarp - Play Inspire FIFA -
NDTV Car and Bike awards 2017
 Indian MNC of the Year by All India Management Association (AIMA)
 Manufacturer of the year - NDTV Car and Bike awards 2017
 Highest Ranked Executive Motorcycle in Initial Quality - Hero Super Splendor - by
JD Power India
2018

 Best launch - Two wheeler at the CNB Auto Expo Awards for Excellence 2018
 Highest Ranked Executive Motorcycle in Initial Quality - Hero Super Splendor - by
JD Power India
 Bike sport award of the year - Times Auto Awards
Hero Cycles
In 1954, Hero Cycles moved up the value chain by making a shift from supplying to
manufacturing handlebars, front forks and chains. In 1956, the Punjab Government issued tender
notices for twelve new industrial licenses to make bicycles in Ludhiana. Munjal and his brothers
participated in the bid and won the contract. Hero Cycles was registered as a large-scale
industrial unit. with capital partly financed by the Government of Punjab.
In 1961, Rockman Cycles Industries was established to manufacture bicycle chains and
hubs. Under Munjal's leadership, Hero Cycles was the first company to export bicycles on such a
large scale. In 1975, the company had become the largest bicycle manufacturer in India. By
1986, Hero Cycles entered the Guinness Book of Records as the largest manufacturers of
bicycles in the world.

Hero MotoCorp

After the Hero Honda Motors joint venture broke up in August 2011, Hero's board of
directors agreed to pay royalties to Honda to continue to produce the Hero Honda until 2013,due
to the popularity and ubiquity of the Hero Honda brand in the Asia Pacific region as Hero Honda
Brand was trusted among the best in the Product reliability and customer satisfaction.
The separation gave an opportunity for Hero to expand its market globally with the name
Hero MotoCorp. Previously, it had not been permitted for Hero Honda to sell their bikes outside
the Asia Pacific and in countries where Honda operated.
In the first week of August 2013, the company recorded a benchmark never before reached by an
Indian two-wheel vehicle industry manufacturer, by producing 50 million bikes.

17
 CEO & BOARD OF DIRECTORS
Dr. Pawan Munjal
Chairman,
Managing Director & CEO

Dr. Pawan Munjal is one of India's foremost corporate

leaders, championing growth, socio-economic progress, and technological
innovations.He has consistently demonstrated his visionary leadership by guiding
Hero MotoCorp in not only consolidating its leadership status, but also expanding
its global footprint to nearly 40 countries across multiple continents. Under his
leadership, Hero MotoCorp achieved the coveted title of World's No. 1 two-
wheeler company (in terms of volume sales by a single company in a calendar
year) in 2001 and has successfully retained this position till date, for 18
consecutive years.
Dr. Munjal has been a prominent member of several industry bodies and has
regularly contributed to policy-making in India. He is a keen sports enthusiast, and
it is thanks to his own personal commitment that Hero MotoCorp is one of the
largest corporate promoters of multiple disciplines of sports around the world.

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Mr. Pradeep Dinodia
Non Executive Directors

Mr. Pradeep Dinodia was appointed as a Director on the Board of the Company on
March 31, 2001 in the category of Non-Executive Director. Mr. Pradeep Dinodia is
a fellow member of The Institute of Chartered Accountants of India and a
Chairman & Managing Partner in the Delhi-based Chartered Accountancy firm
M/s. S.R. Dinodia & Co. LL

Mr. Suman Kant Munjal

Non Executive Director

Mr. Munjal was appointed as an Additional Director on the Board as on July 29,
2010. He is the Executive Chairman (Whole Time Director) of Rockman Industries
Ltd, one of the leading suppliers of aluminium die casting, machined and painted
assemblies to Hero MotoCorp Ltd. A graduate in Commerce, he possesses rich
experience and expertise in business management. Over the years, he has been
instrumental in elevating Rockman Industries Ltd. to its current status.
Years of experience and expertise have led Mr. Munjal to earn a place in the
Boards of various companie.

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Mr. M. Damodaran
Non Executive & Independent Director

Mr. M. Damodaran is the Non-Executive & Independent Director on the Board of

the company. He has held a number of important positions in the Central and State
Governments and in India's financial sector, including Chairman, Securities and
Exchange Board of India (SEBI), Chairman, Unit Trust of India (UTI), Chairman,
Industrial Development Bank of India (IDBI), and Chief Secretary, Government of
Tripura. After successful tenures at UTI and IDBI, where he led the turnaround
efforts, and at SEBI, where he introduced improved corporate governance
practices, he set up Excellence Enablers Private Limited (EEPL), a Corporate
Governance and Board Advisory consultancy firm. His pioneering role in
promoting Corporate Governance in India invests EEPL with an experience-based
leadership role in corporate governance advisory work. In addition, he is presently
a consultant, advisor, coach and mentor and serves on the Boards of some leading
companies as well as on the Advisory Boards of some foreign entities.

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Ms. Shobana Kamineni
Non-Executive and
Independent Director

Ms. Kamineni is the Executive Vice Chairperson of Apollo Hospitals Enterprise

Limited and a member of its founding family. Apollo Hospitals is the pioneer of
private healthcare in India and Asia's foremost integrated healthcare conglomerate.
She heads Apollo Pharmacy, India's largest pharmacy chain and is the founder and
Chairperson on the Board of Apollo Munich Health Insurance, India's best
specialized Health Insurance Company for 9 years, consecutively.
An active member of the Confederation of Indian Industry (CII), Ms. Kamineni’s
appointment as its President in 2017-18 created history, as she was the first ever
woman to hold the position since its inception in 1895.
Ms. Kamineni serves as an Independent Director on the Board of Hero MotoCorp.
In addition, she is the Vice-Chairperson of the KEI Group.
Ms. Shobana Kamineni has been a recipient of prestigious national awards for
Entrepreneurship and Leadership. The Women Economic Forum conferred upon
her the award of 'Businesswomen of the Decade' in recognition of her work in
healthcare and empowerment of women. She was conferred an Honorary Doctorate
Degree of Science by the prestigious Bryant University, USA, in recognition of her
life's work in healthcare & pharmaceuticals and her leadership role in business
expansion in India.

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Mr. Vikram Kasbekar
Executive Director Operations (Plants)

Mr. Kasbekar is responsible for operations, catering to the domestic, exports &
after sales market demand. He has been a part of the Company for close to 16 years
and has significantly contributed to its growth.
Mr. Kasbekar brings over 4 decades of experience in the field of operations, supply
chain, manufacturing, project engineering and new model development. A stint at
Birla Copper as Business Head gave him exposure to the copper business & during
his tenure the business turned profitable. He is an active member of CII northern
region council.

Prof. Jagmohan Singh Raju

Non-Executive and
Independent Director

Prof. Jagmohan Singh Raju holds a Ph.D. in Business, an M.S. in Operations

Research, and an M.A. in Economics from Stanford University based in California.
He is a MBA from the Indian Institute of Management, Ahmedabad, and has a
B.Tech. degree in electrical engineering from the Indian Institute of Technology,
Delhi. He is currently the Vice Dean of Executive Education and the Joseph J.
Aresty Professor of Marketing at the Wharton School of the University of
Pennsylvania. Professor Raju chaired Wharton's Marketing Department for six

22
years and currently coordinates Wharton's relationship with the Indian School of
Business. Prior to joining Wharton, he taught at the Anderson School at UCLA. He
was the Marketing Editor of Management Science and is also the past President for
Informs College on Marketing.
He has received numerous teaching awards at Wharton and UCLA. He was
recognized at IIM Ahmedabad for the best academic performance in each of the
two years he attended, was on the merit list at IIT Delhi. His research interests
include pricing, new product introduction strategies, retailing, strategic alliances,
and advertising.

23
ORGANIZATION STRUCTURE OF HERO

Board Of Directors :-

24
Fig No; 2.1 - organization structure of hero Motocorp

25
GLOBAL FOOTPRINT
GLOBAL PROMINENCE AND SCALE

26
Fig No : 2.2 Global Foot Print

27
 Company’s Current Head quarter In
Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and
scooter manufacturer based in New Delhi, India. The company is the largest two-
wheeler manufacturer in the world, and also in India, where it has a market share
of about 46% in the two-wheeler category.
Location Details - Hero Motocorp
Location Type Address
Factory/plant Dharuhera Plant, 69 KM Stone, Delhi-Jaipur
Highway, Dharuhera,
Rewari District - 122100
Haryana - India
Phone : 264000
Fax : 267018
Email : N.A.
Internet : N.A.
Factory/plant Gurgaon Plant, 37 KM Stone, Delhi-Jaipur Highway,
Sector 33,
Gurgaon - 122001
Haryana - India
Phone : 2894200, 2372123
Fax : 2373141, 2373142
Email : N.A.
Internet : N.A.
Registered & 34, Community Centre, Basant Lok, Vasant Vihar
Corporate Office New Delhi - 110057
Delhi - India
Phone : 46044100, 26142451
Fax : 26143321, 26143198
Email : ilam.kamboj@heromotocorp.com
Internet : N.A.
Factory/plant Haridwar Plant: Plot No. 3, Sector - 10, I.I.E.,
SIDCUL, Roshanabad,
Haridwar - 248001
Uttaranchal - India
Phone : 238500, 239514-16
Fax : 239512, 239513
Email : N.A.

28
 Internet : N.A.
Registered Office 34, Community Centre, Basant Lok, Vasant Vihar,
New Delhi - 110057
Delhi - India
Phone : 46044100, 26142451
Fax : 26143321, 26143198
Email : customercare@heromotocorp.com
Internet : N.A.
R & D Centre Centre of Innovation & Technology, SPL-1, RIICO
Industrial Area, Kukas, Phase-II, NH-11C,
Jaipur - 302028
Rajasthan - India
Phone : 643000
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Plot No. 101-103, 108 &109, RIICO Industrial Area,
Phase - II, Delhi-Jaipur Highway, Neemrana,
Alwar District - 301705
Rajasthan - India
Phone : 2673000
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Plot No. 102, Halol (Exp.) Industrial Estate, Vadodara
Godhra Highway, Taluka - Kalol, Tehsil-Halol,
Panchmahal District - 389350
Gujarat - India
Phone : 229114
Fax :
Email : N.A.
Internet : N.A.

29
 HERO MOTOCORP PLANT LOCATIONS IN INDIA
Hero MotoCorp has manufacturing facilities located at five locations in
India. The five manufacturing plants of Hero MotoCorp have a combined
production capacity of more than 9 million vehicles annually.

Satyavedu, Andhra Pradesh

 Dharuhera, Haryana
 Gurgaon, Haryana
 Neemrana, Rajasthan
 Haridwar, Uttarakhand
Hero MotoCorp has over 7,000 dealership and service centre units in 29 states
and four union territories of India

a.
Map showing Hero Motocorp plants in India
Fig No :2.3 – Manufacturing Location

30
 The Brand Journey

Hero MotoCorp
After the Hero Honda Motors joint venture broke up in August 2011, Hero's
board of directors agreed to pay royalties to Honda to continue to produce the Hero
Honda until 2013, due to the popularity and ubiquity of the Hero Honda brand in
the Asia Pacific region as Hero Honda Brand was trusted among the best in the
Product reliability and customer satisfaction.
The separation gave an opportunity for Hero to expand its market globally
with the name Hero MotoCorp. Previously, it had not been permitted for Hero
Honda to sell their bikes outside the Asia Pacific and in countries where Honda
operated.
In the first week of August 2013, the company recorded a benchmark never
before reached by an Indian two-wheel vehicle industry manufacturer, by
producing 50 million bikes.
THE BRAND Name Hero
origin A hero is a real person or a main fictional character of a literary work who,
in the face of danger, combats adversity through feats of ingenuity, courage, or
strength; the original hero type of classical epics did such things for the sake of
glory and honor. On the other hand, are post-classical and modern heroes, who
perform great deeds or selfless acts for the common good instead of the classical
goal of wealth, pride, and fame. The antonym of a hero is a villain. Other terms
associated with the concept of a hero, may include "good guy" or "white hat".

History of Hero motorcycles and logo

Brand name story
«Hero MotoCorp» company occupies a leading position in the Indian transport
market, and its production accounts for about 50% of all motor vehicles sold in
India. The firm, created in 1983, started manufacturing motorcycles in 1985. Then
the tiny company was like modern «Triumph» brand. In 1987 firm managed to sell
its one hundred thousandth bike. In 1991 the number of produced vehicles reached

31
to half a million. Till 2011 «Hero MotoCorp» has been a joint venture with the
Japanese «Honda» as a representative of «HeroHonda» brand in India. At the same
time, it had its own line of bikes, production capacity, and all the rest important
things. But in 2010, «Honda» aimed to take a full control of its operations in India.
So the joint venture was divided, and «Hero» started existing as an independent
brand

MEANING / SYNONYM.
Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and
scooter manufacturer based in New Delhi, India. The company is the largest two-
wheeler manufacturer in the world, and also in India, where it has a market share
of about 46% in the two-wheeler category
PUNCH LINE/ TAG LINE
HUM MEIN HAI HERO
LAGE AISA FAMILY JAISA
DHAK DHAK GO

32
 PRODUCT MIX OF HERO

Fig No : 3.1 – Product Mix

33
Marketing mix of Hero Motocorp – 4 P’s of Hero Motocorp
Hero Motocorp is a public automotive company dealing with the manufacture and sales
of scooters and motorcycles. Originally, the company was established in the year 1982 and was
called by the name of Hero Honda but in the year 2011, the company decided to split with
its Honda Group and hence a new company was formed by the name of Hero Motocorp.

Hero Motocorp is a company that has the guts to implement its clever ideas into hard
reality. This has been possible only because of the sheer determination of the company and its
tendency to lean towards technology that is of top-tier quality. Some of the main competitors of
this company are as follows.

 Bajaj
 Yamaha

Brand Value

 Reliability
 Constant Mileage
 Comfort Riding
 Reasonable Price
 Low Maintenance

Hero MotoCorp salutes the Heroes with latest campaign #HeroSalutes

August 17, 2017 10:24

Hero MotoCorp has rolled out its Independence Day campaign with its third edition of
Hero Salutes. The campaign has been conceptualised by Law & Kenneth Saatchi & Saatchi and
has been on-air from 11th August.

Hero Salutes is an attempt to bring the nation’s attention to the real heroes of the nation
who are with the armed forces be it the army, navy or airforce. While last year, #HeroSalutes
urged the nation to show respect and regard to our nation’s soldiers at all times at all places by
saluting them, this year Hero has extended the sentiment to their families, the heroes behind the
heroes. Families who miss out on their loved ones because they are away serving the country.
And their absence becomes more evident on special occassions where they are missed most like
the opening story of the film; a young boy who is missing his father at a football match while he
notices all other fathers of his team-mates cheering for them on the field.

Rahul Nangia, Jt.National Creative Director , Law & Kenneth Saatchi & Saatchi added, ―How
does a child, whose parent is away serving in the armed forces make sense of their absence?
That’s heroism too!‖

34
 Product in the Marketing mix of Hero Motocorp
The key focus of Hero Motocorp has been on introducing robust and steady products with the
use of high technology and vivid and visionary imagination. The foresight to realize the
aspirations of the customers and to anticipate the megatrends is a remarkable experience.

Fig No :3.2 Marketing Mix

Although Hero Honda group has been associated with many scooters and motorcycles
like the Karizma, Splendor Pro, Hunk, Glamour, Passion Pro and Glamour F1, the company
under its name Hero Motocorp launched its first bike called Hero Impulse in November 2011.
The next year saw some very new products that had better mileage and drive ability along with
improved power. These new models were Ignitor, for the younger generation and Maestro,
promoted as a masculine scooter.

In the year 2013, the company updated fifteen products. These were Glamour FI,
Karizma R, Glamour, Passion Xpro, ZMR, Passion Pro, Hero Motocorp Super Splendor, HF
Deluxe ECO, Splendor iSmart, Pleasure, Xtreme and Splendor Pro. It introduced the technology
of Engine Immobilizer in Extreme and the integrated system of braking in Pleasure.

In the year 2014, Hero Motocorp added some new products in its kitty like the
Xtreme Sports, Splendor Pro Classic and new and better models of Pleasure, Maestro, Karizma
R and ZMR. Later the company also updated Splendor Pro and Passion Pro.

35
Place in the Marketing mix of Hero motocorp
Hero Motocorp has ventured into newer markets with the help of extensive expansion plans. By
penetrating into distant markets, they are on the verge of becoming the future of India. Hero
Motocorp has set up four plants for manufacturing purposes of two wheelers. In order to
maintain its hold in the two-wheeler category the company has set up a very efficient distribution
network. They have set up a network for sales and services with a minimum of 6000 dealerships
at most of the service points in all the parts of the country. It also has dealer-appointed retail
outlets at all important and strategic places.

Related: Marketing Mix of Sula Wines

Hero Motocorp has the intrinsic ability to reach the far and wide nook and corners of any
place. Earlier Hero Motocorp set up a chain of service workshops and made provisions so that its
spare parts could be easily available from the dealers and stockiest. The bikes are available
through all the dealers who in return are responsible for workshops, proper infrastructure and
trained employees.
Under new agreement with the Honda Group Hero Moto corp can now penetrate in to
markets of West Asia, Africa and Latin America. It can also take the help of any vendor at its
convenience. In 2014, Hero unveiled its plans to penetrate the Bangladesh market.

Price in the Marketing mix of Hero Motocorp

Hero Motocorp follows the policy of competitive pricing as in today’s market conditions
it is very difficult to follow exclusively the strategy involving skimming pricing. The company
has decided to implement the value added pricing policies under which the customers are
provided with the value for their money. Hero Motocorp is proud to announce that they are one
of the very few companies who believe in passing the benefit of any cost advantage to its
customers. Although the company has emphasized on qualitative products but still it has kept the
prices reasonable and affordable. Hero Motocorp has two wheelers of varying price ranges to
suit the needs of different sections of society.
Although some of their products are priced a little higher than their competitors, yet the buyers
prefer these products because of quality and fuel efficiency along with better mileage
and performance. The company is also set to introduce bikes priced at a premium rates which
yield higher margins and revenues. Along with these products, some reasonable and
economically priced products are also to be launched for low budget group of consumers. Due
to its efficient distribution network the company has been able to cut and absorb the excess costs
resulting in higher sales and revenues.

36
 Promotions in the Marketing mix of Hero Motocorp

Fig No : 3.3 – Promotion in Marketing Mix

Hero Motocorp brand has a new and trendy identity that is vibrant and therefore
represents its new outlook. The colors black and red in the logo gives out a strong message of
solidity, passion, energy and confidence.

The brand has come out with a new anthem of duration two minute that focuses on
creating an emotional connection with all its viewers and customers. The ads are about the story
involving the struggle of a common Indian, how he overcomes them and turns into a true and
successful Hero.

Even the Tag Line –―Hum Mein Hai Hero‖ is apt and befitting showing that every person
has a hero inside him. All the advertisements related to Hero Motocorp have catchy tunes
displaying a strong message. These ads are shown at regular intervals on television, radio,
newspapers, magazines and even billboards.

Hero Motocorp has always been associated with sports for most of its promotional
activities. Previously the company was related to the Indian Open Golf Tournament and Hockey.
Hero Motocorp under its own brand name sponsored the tournament FIH Road to London in the
year 2012.

37
 Hero has always been associated with cricketing fraternity either for two nation
tournaments or for world cups. Hero Motocorp has also been sponsoring the hugely successful
television program MTV Roadies. For its promotional activities the company has appointed
cricketer Irfan Pathan and the famous actor Ranbir Kapoor and Hrithik Roshan as its brand
ambassadors. At present, actor Akshay Kumar can be seen in most of the ads of this company.

38
PRICE :-

39
40
41
42
43
44
Fig No : 3.4 Price Of Product

45
 Brand Ambassador
Hero MotoCorp currently sells 10 products across segments of motorcycles
and scooters in Colombia, including the recently launched premium motorcycle –
Thriller 200R. The country's largest two-wheeler maker Hero MotoCorp Monday
said it has signed Colombian footballer Yerry Mina as its new brand ambassador.

Fig No 3.5 – Brand Ambassador

46
Competition Analysis
Q 1. What makes unique?

47
Fig No 4.1 – Unique

48
Q.1.What Are Your Competitors ?

49
 Fig No 4.2 Competitors
Q .3. What Are They Doing Best ?
They Do
Provide no.1 Quality of product
HERO MOTOCORP HERALDS A NEW ERA OF TECHNOLOGY LEADERSHIP
OPENS UP NEW FRONTIERS WITH A SLEW OF GAME-CHANGING TWO-WHEELERS
ACROSS-THE-SPECTRUM
- HX250R: THE ALL NEW 250CC MEAN MACHINE

50
- RNT: THE BREAKTHROUGH LIQUID-COOLED TURBO-CHARGED DIESEL CONCEPT
BIKE
- LEAP: INDIA'S FIRST SERIES HYBRID SCOOTER
- DASH: FLAMBOYANT 110CC SCOOTER
New Delhi, January 29, 2014
An aerodynamic styling, six-speed transmission and lightweight mass centralized chassis
make the HX250R incredibly responsive in all riding conditions. The geodesic tubular chassis
integrates the engine as a stressed member, and allows full control of its modern 17‖ sports bike
wheels and tires. The entire package results in spectacularly good handling and stability for
riders of every skill level.
When it’s time to stop the riding fun, you can trust the linked brake system featuring
powerful Brembo design hydraulic callipers gripping the 300 mm front and 220 mm rear brake
rotors.
For the discerning riders, the HX250R also comes with an optional latest ABS
technology.

Q.4.Current Market Share of Hero Moto Corp and other competitors ?

Fig No 4.3 Market Share

51
Q.5. What Type of Product Do They Offer ?
1) Motorcyle
2) Scooter
Q.6. Why do people love them?
1. It’s cheap - More than 50% population in India lies below lower middle class income
segment. Cost plays a major factor for these people when they buy a motorcycle.
Splendor even today comes under ₹60k on road.
2. It’s very fuel efficient - New bike will give you 70+kmpl without breaking a sweat.
Some users even report 75+ imply from their motorcycle. When we bought our bike
(Passion Plus) in 2004, it used to give 65+kmpl on an average. After 14 years it still
gives about 50+kmpl easily. So you can get an idea about how fuel efficient this bike is
over the years.
3. It’s very cheap to maintain - Once in a 6 month service costs me roughly between
₹400-₹500. Overall, no more than ₹1000 a year for servicing this bike.
4. Parts are dirt cheap - OEM spare parts are cheap and if you go for local non OEM
parts then those prices further reduce by up to 20–25%.
5. It’s very robust - This bike is built to last. There are very few repairs required during
the ownership of these bikes. I have seen many owners literally thrashing their
motorcycles, but it still starts in one kick the very next day. My motorcycle was
involved in an accident in 2015, where it was almost cracked in half. My father sent it
for repairs. 1 month and ₹5000 later, it was back in my garage and the engine still roars
after the first kick in morning.
6. It has wide service availability - Hero has good number of service centers located all
over India. Additionally there is plethora of mechanics available everywhere across
India and I myself don’t remember the last time we went to an official service center.
7. Legacy - This motorcycle has garnered only love ever since its launch in 1994. Since
then this motorcycle is associated with its reliability and economical maintenance.

52
Q.7.Which Geographical area they operate in?

Fig No 4.4 Location

53
Q.8.What is their USP?
This regional brand is making all the right moves. Hero Monocarp is unleashing not
one but three new bikes in the market and they are targeted at the premium motorcyclist. Each
product ushers in its own unique selling proposition and has a distinct category that it is
reaching out to.

Q.9.What is Their Total Sales Volume ?

Fig No 4.5 – Total Sales Volume

54
 Financial
Last Five Year Revenues

Fig No 5.1- Last Five year Revenue

55
PROFIITABILITY

Fig No 5.2 Profitability

56
MARKET CAPITALIZATION OF HERO MOTOCORP

Fig No 5.3 Market Capitalization

57
SEGMENT REVENUE OF HERO MOTOCORP
Hero MotoCorp, the world's largest two-wheeler manufacturer, on Tuesday reported
38.28 per cent year-on-year growth in its net profit at Rs 1,257 crore for the first quarter ended
June 30, 2019, led by a one-off exceptional gain of Rs 737.50 crore from the reversal of a
national calamity contingent duty that the company paid for its Haridwar plant.
"The auto major had posted a net profit of Rs 909 crore in the same quarter last year," Hero
MotoCorp said in a filing to the Bombay Stock Exchange.
Hero MotoCorp's revenue from operations declined by 8.85 per cent to Rs 8,030 crore in
Q1FY20 versus Rs 8,810 crore in Q1FY19. EBITDA (Earnings before interest, tax, depreciation
and amortisation) margin expanded to 14.4 per cent in Q1FY20 sequentially from 13.6 per cent
in the March quarter, the company said.
The other income of the company nearly doubles to Rs 218.83 crore as against Rs 115.73 crore
in the year ago fiscal.

58
AUDITORS
Mr. M.DAMODARAM (Chariman)
MR.PRADEEP DINODIA (Member)
MR.PAUL .B.EDGERLEY (Member)

KEY AUDIT MATTERS

1. GOVERNMENT GRANTS
THE COMPANY OBTAINS VARIOUS GRANTS FROM
GOVERNMENT AUTHORITIES IN CONNECTION WITH
MANUFACTURING AND SALES OF TWO WHEELERS. THERE ARE
CERTAIN SPECIFIC CONDITIONS ATTACHED TO THE GRANTS WHICH
ARE SUBJECT TO FORMAL APPROVAL PROCESS.

Management Evaluates On A Periodic Basis Whether The Company Has

Complied With The Relevant Conditions Attached To Each Grant And Whether
There Is A Reasonable Assurance That The Grants Will Be Received In Order To
Determine The Timing And Amounts Of Grants To Be Recognized In The
Financial Statements.

IN VIEW OF THE SIGNIFICANCE OF THE MATTER WE APPLIED THE FOLLOWING AUDIT

PROCEDURES IN THIS AREA AMONG OTHERS TO OBTAIN SUFFICIENT APPROPRIATE
AUDIT EVIDENCE:

• Inspecting On A Sample Basis Documentation Relating To The Grants Given By

The Various Government Authorities And Identifying The Specific Conditions
Attached To The Respective Grants And Respective Application And Approval
Procedures;

EVALUATED THE BASIS OF MANAGEMENT'S JUDGEMENT ABO

GRANTS HAVE BEEN MET AND WHETHER REASONABLE ASSUR
AUDITOR'S RECEIVED AND EVALUATING MANAGEMENT'S JUDGEMENT B
RESPONSE DOCUMENTATION AND THE INFORMATION USED BY THEM TO

AUDIT

59
PROCEDURES

Auditor' s Responsibilities for the Audit of the Standalone Financial

Statements Our objectives are to obtain reasonable assurance about whether the
standalone financial statements as a whole are free from material misstatement
whether due to fraud or errorand to issue an auditor' s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with SAs will always detect a material
misstatement when it income changes in Company in accordance with the exists.
Misstatements can arise from fraud or error and are considered material if
individually or in the aggregate they could reasonably be expected to influence the
economic decisions of users taken on the basis of these standalone financial
statements.
As part of an audit in accordance with SAs we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial
statements whether due to fraud or error design and perform audit procedures
responsive to those risks and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error as
fraud may involve collusion forgery intentional omissions misrepresentations or
the override of internal control.

60
LISTING STATUS & SCRIP CODES -

 Listing Information
 Face Value2.0
 Market Lot Of Equity Shares1
 BSE Code500182
 BSE GroupA

 Listed On
 Bangalore Stock Exchange Ltd.
 Calcutta Stock Exchange Association Ltd.
 Cochin Stock Exchange Ltd.
 Delhi Stock Exchange Assoc. Ltd.
 Hyderabad Stock Exchange Ltd
 Inter-connected Stock Exchange of India
 Ludhiana Stock Exchange Assoc. Ltd.
 Madras Stock Exchange Ltd.,
 MCX Stock Exchange
 National Stock Exchange of India Ltd.
 Over The Counter Exchange Of India Ltd.
 The Stock Exchange, Mumbai
 Uttar Pradesh Exchange Assoc Lt

61
GLOBAL LISTINGS ON INTERNATIONAL STOCK MARKET
HERO MOTOCORP LTD. (HEROMOTOCO) - LISTING INFO
KEY DATES

YEAR ENDING MONTH MARCH

AGM DATE (MONTH) JUL

BOOK CLOSURE DATE (MONTH) JUL

LISTING INFORMATION

FACE VALUE OF EQUITY SHARES 2

MARKET LOT OF EQUITY SHARES 1

BSE CODE 500182

NSE CODE HEROMOTOCO

BSE GROUP A

WHETHER THE COMPANY FORMS A PART OF THE FOLLOWING INDICES -

SENSEX YES

NIFTY YES

BSE 100 YES

BSE 200 YES

BSE 500 YES

CNX 500 YES

CNX MIDCAP NO

LISTING ON

THE STOCK EXCHANGE, MUMBAI

STOCK EXCHANGE, NATIONAL STOCK
LISTING ON
EXCHANGE OF INDIA LTD., MCX-SX
STOCK EXCHANGE

62
Share Price Face Value

Fig No : 5.4 – Share price Face Value

63
Current Market Value Of Hero Motocorp

Fig No : 5.5- Current Market Value

64
Annual High Low Figure Of Hero Motocorp

Fig No : 5.6 –Annual High Low Figure

65
SHAREHOLDING PATTERN
Shares
pledged or
Total
otherwise
No. Shareholding
Total No. of encumbere
category of as a % of total
Shares held in d
of Share Total NO. No. of Shares
Dematerialize Number of
Sharehold - of Shares As a % of
d shares
er holde (A+B)
Form As a % of
rs As a % of
Total
(A+B+C)
No. of
Shares
(A) Shareholding of Promoter and Promoter Group

(1) Indian

Individuals /
Hindu
13 28,347,70 28,347,70 14.19 14.19 - -
Undivided 8 8
Family

Central
Government
- - - - - -
/ State
Government
(s)

Bodies
Corporate
- - - - - -

Financial
Institutions /
- - - - - -
Banks

Any Others 3 40,818,37 40,818,37 20.44 20.44 - -

(Specify)
4 4

Sub Total
16 69,166,08 69,166,08 34.63 34.63 - -
2 2

(2) Foreign

Individuals
(Non-
- - - - - -
Residents

66
 Individuals /
Foreign
Individuals)

Bodies
Corporate
- - - - - -

Institutions - - - - - -
Qualified
Foreign
- - - - - -
Investor

Any Others
(Specify)
- - - - - -

Sub Total - - - - - -
Total
shareholdin
16 69,166,08 69,166,08 34.63 34.63 - -
g of 2 2
Promoter
and
Promoter
Group (A)

(B) Public Shareholding

(1)
Institutions

Mutual 37 15,926,46 15,918,88 7.97 7.97 - -

Funds / UTI
4 4
Financial
Institutions /
33 4,276,517 4,217,802 2.14 2.14 - -
Banks

Central
Government
- - - - - -
/ State
Government
(s)

Venture
Capital
- - - - - -
Funds

Insurance 14 16,893,94 16,893,94 8.46 8.46 - -

Companies
1 1

67
 Foreign
Institutional
- - - - - -
Investors

Foreign
Venture
- - - - - -
Capital
Investors

Qualified 749 70,306,99 70,306,78 35.20 35.20 - -

Foreign
Investor 8 8
Nominated
investors (as
- - - - - -
def. in Ch.
XA of SEBI
(ICDR)
Regulations)

Market
Makers
- - - - - -

Any Others
(Specify)
8 58,340 58,340 0.03 0.03 - -

Sub Total
841 107,462,2 107,395,7 53.80 53.80 - -
60 55

(2) Non-
Institutions

Bodies
Corporate
- - - - - -

Individuals - - - - - -
Individual
shareholder
- - - - - -
s holding
nominal 0
share capital
up to Rs. 1
lakh

Individual
shareholder
13,038,72 11,631,72 6.53 6.53 - -
s holding 0 6
nominal 137,520
share capital
in excess of
Rs. 1 lakh

68
 Qualified
Foreign
- - - - - -
Investor

Any Others 6,337 10,059,82 10,042,63 5.04 5.04 - -

(Specify)
2 7

Sub Total
143,857 23,098,54 21,674,36 11.57 11.57 - -
2 3

Total Public 144,698 130,560,8 129,070,1 65.37 65.37 - -

shareholdin
g (B) 02 18

Total (A)+(B)
144,714 199,726,8 198,236,2 100.0 100.0 - -
84 00 0 0

69
 MARKET AND MARKETING
Players in The industry :-
In 2010, When Honda decided to move out of the joint venture, Hero Group bought the
shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp
with a new corporate identity.

Hero Honda Motors Limited, the joint venture between Hero Group and Honda, was the
biggest two-wheeler manufacturers in the world. It shook the Indian two-wheeler market with its
famous model Hero Honda Splendor, which became the largest selling motorcycle in the world. It
consistently sold more than 1 million units of Splendors every year.

In 2008-09, Hero Honda sold about 3.28 million bikes and registered a net profit of ` 1281.7
crore. It sold 4,01,290 units of two-wheeler in September 2009, comparing to 3,85,262 in September
2008. It already sold 11,83,235 units of two-wheelers in Q2 of FY10 with a growth rate of 21.7%
against the corresponding period of the previous year.

Market Shares Of Top Five Players

Fig NO :6.1 – Market Share Top 5 Players

70
7Ps

1) Product in the Marketing mix of Hero Monocarp

The key focus of Hero Monocarp has been on introducing robust and steady products with the
use of high technology and vivid and visionary imagination. The foresight to realize the
aspirations of the customers and to anticipate the megatrends is a remarkable experience.

Although Hero Honda group has been associated with many scooters and motorcycles like
the Charisma, Splendor Pro, Hunk, Glamour, Passion Pro and Glamour F1, the company under
its name Hero Monocarp launched its first bike called Hero Impulse in November 2011. The next
year saw some very new products that had better mileage and drive ability along with improved
power. These new models were Igniter, for the younger generation and Maestro, promoted as a
masculine scooter.

In the year 2013, the company updated fifteen products. These were Glamour FI, Charisma R,
Glamour, Passion Prow, ZMR, Passion Pro, Hero Monocarp Super Splendor, HF Deluxe ECO,
SplendoriSmart, Pleasure, Extreme and Splendor Pro. It introduced the technology of Engine
Immobilizer in Extreme and the integrated system of braking in Pleasure.

In the year 2014, Hero Monocarp added some new products in its kitty like the Extreme Sports,
Splendor Pro Classic and new and better models of Pleasure, Maestro, Charisma R and ZMR.
Later the company also updated Splendor Pro and Passion Pro.

71
  Market Shares

 Logo

2)Place in the Marketing mix of Hero monocarp

Hero Monocarp has ventured into newer markets with the help of extensive expansion plans. By
penetrating into distant markets, they are on the verge of becoming the future of India. Hero
Monocarp has set up four plants for manufacturing purposes of two wheelers. In order to
maintain its hold in the two-wheeler category the company has set up a very efficient distribution
network. They have set up a network for sales and services with a minimum of 6000 dealerships
at most of the service points in all the parts of the country.

72
It also has dealer-appointed retail outlets at all
important and strategic places.

Related: Marketing Mix of Maze - Maze Marketing Mix

Hero Monocarp has the intrinsic ability to reach the far and wide nook and corners of any place.
Earlier Hero Monocarp set up a chain of service workshops and made provisions so that its spare
parts could be easily available from the dealers and stockiest. The bikes are available through all
the dealers who in return are responsible for workshops, proper infrastructure and trained
employees.

Under new agreement with the Honda Group Hero Moto corp. can now penetrate in to markets
of West Asia, Africa and Latin America. It can also take the help of any vendor at its
convenience. In 2014, Hero unveiled its plans to penetrate the Bangladesh market.

3) Price in the Marketing mix of Hero Monocarp

Hero Monocarp follows the policy of competitive pricing as in today’s market conditions it is
very difficult to follow exclusively the strategy involving skimming pricing. The company has
decided to implement the value added pricing policies under which the customers are provided
with the value for their money. Hero Monocarp is proud to announce that they are one of the
very few companies who believe in passing the benefit of any cost advantage to its customers.
Although the company has emphasized on qualitative products but still it has kept the prices
reasonable and affordable. Hero Monocarp has two wheelers of varying price ranges to suit
the needs of different sections of society.

Although some of their products are priced a little higher than their competitors, yet the buyers
prefer these products because of quality and fuel efficiency along with better mileage
and performance. The company is also set to introduce bikes priced at a premium rates which
yield higher margins and revenues. Along with these products, some reasonable and
economically priced products are also to be launched for low budget group of consumers. Due
to its efficient distribution network the company has been able to cut and absorb the excess costs
resulting in higher sales and revenues.

73
4) Promotions in the Marketing mix of Hero Monocarp

Fig No 6.2 – Promotion In Marketing Mix

Hero Monocarp brand has a new and trendy identity that is vibrant and therefore represents its
new outlook. The colors black and red in the logo gives out a strong message of solidity, passion,
energy and confidence.

5) Process
There are a number of perceptions of the concept of process within the business and marketing
literature. Some see processes as a means to achieve an outcome, for example – to achieve a 30%
market share a company implements a marketing planning process. However in reality it is more
about the customer interface between the business and consumer and how they deal with each
other in a series of steps in stages, i.e. throughout the process.

6) Physical Evidence
Physical Evidence is the material part of a service. Strictly speaking there are no physical
attributes to a service, so a consumer tends to rely on material cues. There are many examples of
physical evidence, including some of the following buildings, equipment, signs and logos, annual
accounts and business reports, brochures, your website, and even your business cards.

74
 7) People
 Howard Schultz is Chairman, Chief Executive Officer for Starbucks.
 Olden Lee Interim Vice President
 Barbara Bass Director, Non Executive Board
 Cliff Burrows is President of Starbucks Coffee US
 Author Rubenfeld, Global Development
 Troy Alstead is Chief Financial Officer
 John Culver is President of Global Consumer Products

Segmentation targeting and positioning of hero moto corp

1. Segmentation, Targeting and Positioning of Hero Moto Corp Khushboo Priyambada MFM I
NIFT, Bengaluru
2. 1. Introduction to Two Wheeler Bikes A motorcycle (also called a motorbike, bike) is a two
wheeled motor vehicle. Motorcycles vary considerably depending on the task they are designed
for, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or
off-road conditions. Motorcycles are one of the most affordable forms of motorized transport in
many parts of the world and, for most of the world's population, they are also the most common
type of motor vehicle. There are around 200 million motorcycles (including mopeds, motor
scooters, motorized bicycles, and other powered two and three wheelers) in use worldwide, or
about 33 motorcycles per 1000 people. India, is the second largest producer of two-wheelers in
the world. In the last few years, the Indian two wheeler industry has seen spectacular growth.
The country stands next to China and Japan in terms of production and sales respectively.
Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a
large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are
considered to be the favorite among the youth generation, as they help in easy commutation. The
two-wheeler market in India is the biggest contributor to the automobile industry with a size of
Rs.100,000 million. The motorcycle market share is about 81.5% of the total two wheeler market
in India. Threefourths of the total exports in the two wheeler automobile industry are made in the
motorcycle segment. 2. Segmentation, Targeting and Positioning Related to Bikes 2.1 Segment
marketing A market segment consists of a group of customers who share a similar set of needs
and wants. The major segmentation variables—geographic, demographic, psychographic, and
behavioral segmentation. Geographic Segmentation (nation, states, regions, cities, density,
climate, etc.) Demographic Segmentation (age, family size, gender, income, family life cycle,
occupation, religion) Psychographic segmentation (lifestyle, personality) Behavioral
segmentation (occasions, benefits, user status, usage rate, loyalty status, attitude towards
product)

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Micro Environment

Fig No 6.3 – Micro Environment

Suppliers and distribution channels:

Managing the supply chain and distribution network should also be a primary focus of
businesses that strive to be successful. A well managed supply chain reduces operational costs and
improves efficiency. Some companies that have managed efficient supply chains have been able to pass
the savings to their customers. For example, Costco and Walmart are large retailers with well managed
supply chains. They have been able to maintain lower prices through supply chain optimisation.
Selecting the right distribution channels and optimising them also affects operational efficiency and
improves the bottomline. Apart from sales, customer service is also just as important. You need to be
within your customers’ reach if you want to see your business being popular and successful.

Customers:

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 Customers are considered the most important factor in the microenvironment because of
the impact they have on business. Their importance has grown higher in the 21st
century. Moreover, the better a business knows its customers, the healthier is its bottomline. A
company can create promotional strategies and campaigns to attract and retain its customers
effectively by understanding them better. Being more customer-oriented helps in the new era
because customized service helps retain hem longer. Sometimes, it also helps at generating new
revenue streams as you can sell more to your existing customer base if you understand its
preferences better. There are several more things that show the central importance of customers
in the context of business. Businesses are using every means to strengthen the customer
connection. It is not just about earning from them but knowing them, including and retaining
them for longer. Customer engagement has become a key focus for businesses and it is also
because of the growing competition.
Competitors:
Competition is everywhere and in every industry. The level of competition in any
industry has a major effect on profits. The higher the number of your competitors, the lower is
your market share. When several businesses are battling for winning market share in a limited
space, the chances of market growing saturated quicker are higher. Not just this, competition
affects businesses in other ways too. To stand out in a highly competitive market is not easy and
businesses must differentiate to attract customers. Moreover, the pressure of competition also
compels businesses to regularly update their business and marketing strategies. However,
sometimes competition can be a positive factor and can help churn demand.

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Macro Environment

Fig No : 6.4 Macro Environment

Macro environment
Political forces in the Macro Environment
Every business is limited by the political environment. This involves laws, government agencies
and pressure groups. These influence and restrict organizations and individuals in a society.
Therefore, marketing decisions are strongly influenced and affected by developments in the
political environment.

Before entering a new market in a foreign country, the company should know everything about
the legal and political environment. How will the legislation affect the business? What rules does
it need to obey? What laws may limit the company’s ability to be successful? For example, laws
covering issues such as environmental protection, product safety regulations, competition,
pricing etc. might require the firm to adapt certain aspects and strategies to the new market.

As we have seen, the company is surrounded by a complex environment. The Macro

Environment consists of a large variety of different forces. All of these may shape opportunities
for the company, but could also pose threats. Therefore, it is of critical importance that marketers

78
understand and have an eye on development in the Macro Environment, to make their business
grow in the long term

Ecological forces in the Macro Environment

Ecological or natural forces in the Macro Environment are important since they are about the
natural resources which are needed as inputs by marketers or which are affected by their
marketing activities. Also, environmental concerns have grown strongly in recent years, which
make the ecological force a crucial factor to consider. For instance, world, air and water
pollution are headlines every marketer should be aware of. In other words, you should keep track
of the trends in the ecological environment

Technological forces in the Macro Environment

Technological forces form a crucial influence in the Macro Environment. They relate to factors
that create new technologies and thereby create new product and market opportunities.
A technological force everybody can think of nowadays is the development of wireless
communication techniques, smart phones, tablets and so further. This may mean the emerge of
opportunities for a business, but watch out: every new technology replaces an older one. Thus,
marketers must watch the technological environment closely and adapt in order to keep up.
Otherwise, the products will soon be outdated, and the company will miss new product and
market opportunities.

Socio-Cultural forces in the Macro Environment

The Socio-Cultural forces link to factors that affect society’s basic values, preferences
and behavior. The basis for these factors is formed by the fact that people are part of a society
and cultural group that shape their beliefs and values. Many cultural blunders occur due to the
failure of businesses in understanding foreign cultures. For instance, symbols may carry a
negative meaning in another culture.

Economic forces in the Macro Environment

The Economic forces relate to factors that affect consumer purchasing power and
spending patterns. For instance, a company should never start exporting to a country before
having examined how much people will be able to spend. Important criteria are: GDP, GDP real
growth rate, GNI, Import Duty rate and sales tax/ VAT, Unemployment, Inflation, Disposable
personal income, and spending patterns.

Political forces in the Macro Environment

Every business is limited by the political environment. This involves laws, government
agencies and pressure groups. These influence and restrict organizations and individuals in a
society. Therefore, marketing decisions are strongly influenced and affected by developments in
the political environment.
Before entering a new market in a foreign country, the company should know everything
about the legal and political environment. How will the legislation affect the business? What

79
 rules does it need to obey? What laws may limit the company’s ability to be successful? For
example, laws covering issues such as environmental protection, product safety regulations,
competition, pricing etc. might require the firm to adapt certain aspects and strategies to the new
market.

As we have seen, the company is surrounded by a complex environment. The Macro

Environment consists of a large variety of different forces. All of these may shape opportunities
for the company, but could also pose threats. Therefore, it is of critical importance that marketers
understand and have an eye on development in the Macro Environment, to make their business
grow in the long term.

Political Economic

 Stage of business cycle

 Government type and stability
 Current and project economic growth, inflation
 Freedom of press, rule of law and levels of
and interest rates
bureaucracy and
 Unemployment and labor supply
corruption
 Labor costs
 Regulation and de-regulation trends
 Levels of disposable income and income
 Social and employment legislation
distribution
 Tax policy, and trade and tariff controls
 Impact of globalization
 Environmental and consumer-protection
 Likely impact of technological or other change
legislation
on the economy
 Likely changes in the political environment
 Likely changes in the economic environment
 Socio-cultural  Technological
 Population growth rate and age profile
 Population health, education and social mobility,
and attitudes to
these  Impact of emerging technologies
 Population employment patterns, job market  Impact of Internet, reduction in
freedom and attitudes communications costs and
to work increased remote working
 Press attitudes, public opinion, social attitudes  Research and Development activity
and social  Impact of technology transfer
taboos
 Lifestyle choices and attitudes to these
 Socio-Cultural changes

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Digital Slide Of The Business

Nature of E-Commerce

B2C B2B

Single buyer Multiple Decision Makers

Fixed consumer prices Customer specific prices

Direct payments Payment on credit sales

Stocks (for a.s.a.p

Smart shipments (i.e. truckloads)
shipments)

Low frequency
Reoccurring purchases
purchases

Single visits Long lasting relationship between customer and manufacturer

Buying because you

Buying as part of the job
like it

Buyers as part of an organization with a relationship defined by a

Consumer
contract, terms and conditions

E-Commerce
E-commerce is the activity of buying or selling of products on online services or over
the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic
funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and
automated data collection systems.

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Modern electronic commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle although it may also use other technologies such as e-mail. Typical e-
commerce transactions include the purchase of online books (such as Amazon) and music
purchases (music download in the form of digital distribution such as iTunes Store), and to a less
extent, customized/personalized online liquor store inventory services.[1] There are three areas of
e-commerce: online retailing, electronic markets, and online auctions. E-commerce is supported
by electronic business.
Mobile Commerce
The phrase mobile commerce was originally coined in 1997 by Kevin Duffey at the launch of the
Global Mobile Commerce Forum, to mean "the delivery of electronic commerce capabilities
directly into the consumer's hand, anywhere, via wireless technology." Mobile e-commerce for
B2B is becoming increasingly popular.] B2B has features different from mobile e-commerce for
B2C. Whereas B2C is mostly classic catalogue browsing, mobile e-commerce for B2B requires
specific features, which include:

 Displayed prices that are customer specific;

 Stock indication that is always up-to-date;
 Discounts that are calculated real-time;
 Orders can be placed quickly, for example with order histories or lists based on filtered
product sets;
 Sales agents should be able to represent their customers.

INTERNATE OF THING (IOT)

Hero MotoCorp in the process of implementing multiple usecases for IoT
By Abhishek Raval on May 21, 2018
The biggest benefit from any IoT implementation is the availability of real time information,
which is not fed by an individual, so the information is authentic. The analysis of the data is also
accurate because it is based on rules, algorithms, etc. The same information can then be made
readily available in case if it is required for decision making
From an IoT perspective, there are multiple use cases being explored. Some have reached
the production stage, while a few are in the pilot stage. Using IoT in the area of data centre and
smart factory is in production now, while IoT as a product and in the final product segment – in
the vehicle – is being tested, and is in a PoC stage. The evaluation period for selecting a cloud
and IoT application provider took close to an year.

82
IoT use cases at Hero MotoCorp
There are four areas, where IoT is applied or is in the testing stage. The first area is the product
itself. How can something be IoT enabled, which is the motorcycle in our case. The second
aspect is our factory; we are thinking about making all the machines on the shop floor IoT
enabled and sensorising certain areas in the factory to tap information, take corrective actions
and do analytics. Thirdly, we need to monitor various elements inside the data centre and lastly,
retrofitting the IoT devices into the motor vehicles, which are out in the market.
IoT for smart factory and data centre is in production. Whereas, IoT products and
retrofitting IoT devices on the motor vehicles is in the PoC stage. The tests are ongoing. The
pilots are also being run in some of the global markets. The application has been designed and
the IoT platform is up and running. There are no products currently being launched which are
IoT enabled – it will be decided later. A few of the smart machines are already live in the sense
that data from the machines is converted from analog into digital data, which is then moved on
the IoT platform from the sensors. Subsequently, we run analytics over this data. The data is then
available in the required format on mobility devices, dashboards etc.
Cloud based IoT platform
The entire IoT application is hosted on a cloud platform. The IoT solution is bought from
a startup company, and the cloud platform is from one of the four biggest Cloud Service
Providers (CSPs) in India. About three other IoT solution providers were also in the race. The
different criteria covered include: Whether the cloud platform can take unstructured data; from
what kind of sensors can the data be uploaded – Can it take data from a wireless sensor, a 2G,
3G, 5G device, LTE, whether the data can be taken when the bike is in motion, the security
features, which were added further with the specific requirements that we had. These features
were again tested.
From the perspective of the mobile application for IoT, some of the considerations
include, the data display type, the analytics features provided, the algorithms designed, the work
being carried out by their data scientists. We also spoke with the CTO of the startup, on his
thoughts of taking the platform to the next level. The startup company is nimble, and fast to
respond to the requirements. When you get into projects like IoT, it results into a number of
unthinkables. If the provider starts getting too trivial and says it will not go beyond a certain
limit; it doesn’t work that way. The vendor needs to go that extra mile and go out of the way and
work hand-in-hand with the business. They should have the hunger to make the project a
success. This is the quality that won the startup the project from us.

MOBILE MARKETING
Desktop marketing up until now was one of the most important forms of marketing a business
could use. Most people used a desktop computer or laptop and regularly used internet browsers
to perform online shopping. Although desktop marketing is still hugely important, another form
of marketing is set to take centre stage and play a prominent role in marketing campaigns of

83
modern business. This type of marketing is known as mobile marketing – marketing campaigns
specifically created for mobile devices such as smartphones and tablets.
So, why is this type of marketing becoming more important? That is mainly due to the rise
in prominence of smartphones – literally, everyone has either a smartphone or a tablet, but can
the same be said for a desktop computer or a laptop? Statistics even point towards this trend too
– 92% of adults own a mobile device, but only 73% own a desktop or laptop device. In short,
more people are using mobile devices, therefore there is a greater need to take advantage of this
and start using mobile marketing.
10 Big Things to Expect in the Digital Space
The infographic below delves further into this subject and provides you with some
interesting facts and figures about mobile marketing:
There is a myriad of different types of mobile marketing, some of which you may not even
realize! We have SMS (text message) marketing which customers can opt-in to and receive
regular product promotions and updates. There are also more indirect things that you can do,
such as building your website and optimizing it to be responsive and easy to use on mobile
devices.
About
Latest Posts:-
Karthik Reddy
Karthik Reddy, Community Manager at www.16best.net, is the author of India’s Number 1
travel blog. Boasting an MBA in computer science, he once decided to get away from the office
desk life and take a breathtaking journey around the world. He is eager to use the power of the
global network to inspire others. A passionate traveller and photography enthusiast, he aspires to
share his experiences and help people see the world through his lens.
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PRESENCE ON VARIOUES SOCIAL NETWORKING SITES AND THEIR
PURPOSE

Digital Side of the Business

https://instagram.com/heromotocorplimited?igshid=sss1oyd8snbj

https://www.linkedin.com/jobs/view/993722209/?trk=li_group_apac-
in_bcs_mtvgajs5_LIgroup_gajHero

https://www.facebook.com/HeroMotoCorpIndia

https://www.twitter.com/HeroMotoCorpIndia

https://www.youtube.com/user/TheHeromotocorp

85
Observations & Learning’s From The Tasks Carried Out (SWOT)
 Hero Motocorp Bike Has a Good For Various Level Of People.
 It Is The 1 Among Bike Industry In The India .
 We Learn Different Strategy Of Hero Motocorp LTD.
 We Learn Hero Motocorp Marketing Strategy , Manufacturing & Distribution Process.
 We Learn How Is Best Hero Motocorp Bike .

( SWOT )
Strengths
Hero Motocorp enjoy various competitive advantages and strengths that has contributed to
its success and immense growth for more than 3 decades.
Brand Recognition - Brand and brand trust plays a huge part when purchase decisions are
made by consumers. Hero MotoCorp is a strong brand which is synonymous with reliability and
fuel efficient two wheelers. According to The Brand Trust Report published by Trust Research
Advisory, the conglomerate surged 223 places to rank 33 as one of India's most trusted brands in
2018. It was ranked 6 in the automobile category, the highest of any Indian two wheeler
manufacturer in the shortlist.
Weaknesses
Despite its strong domestic presence and large market, Hero MotorCorp still have some
weaknesses that can threaten its growth and future.
Poor Gender Diversification - As of late 2018, Hero MotoCorp had only 256 female employees
out of 8266, Although the figure has tripled from a mere 1% in 2014, much more still can be
done to address the gender inequality and diversification.
Opportunities
Joint Ventures and Acquisitions - Despite the terminated joint venture with Honda Japan, it
is crucial to note that for many years, technology in its two wheelers came from Honda. By
acquiring start-ups or going into joint ventures will allow the conglomerate to obtain more
valuable technology and tap into other market segments. A good example is its 49.2% stake
buyout of Erik Buell Racing, which allows Hero MotoCorp to synergize motor technologies and
extend sales into the North American market.
Threats
Strong Competition - Hero MotoCorp faces strong competition domestically despite its
strong foothold in India. The two wheeler market in India is very competitive and is dominated
by three other major players, TVS Motors, Honda, and Bajaj Auto.

86
Conclusion:-

It is one of the great choices to do practical analysis in industry through this field

work. I got some exposure , knowledge from the resources. And I know the peaceful

setup how helps the management and worker to succeed in their life. And I think who all

helped me to finish this project report.

87
 Reference
 http://www.heromotocorp.com
 http://www.dealer.heromotocorp.com
 http://marketing-insider.eu.
 http://blog.oxfordcollegeofmarketing.com
 http://en.m.wikipedia.com
 http://m.economictimes.com
 http://m.rediff.com
 http://economictimes.indiatimes.com
 www.scribd.com
 www.docstoc.com

88