A

PROJECT REPORT
ON
“MARKET STRATEGIES OF HERO MOTOCORP
LTD.”
Submitted for the partial fulfillment for the award
Of
Bachelor of Business Administration
from
Chaudhary Charan Singh University, Meerut
Session 2020-2023
Submitted To:
Beacon Institute of Technology

Under the guidance of: Submitted by:

Mr. DUSHYANT SHARMA CHIRAG AHUJA
(Assistant Professor) R.No:R200968105007
Semester: 5th

DEPARTMENT OF MANAGEMENT
BEACON INSTITUTE OF TECHNOLOGY,
PARTAPUR BY PASS ROAD, MEERUT
BATCH 2020-2023
 BEACON INSTITUTE OF TECHNOLOGY, MEERUT
(Affiliated to Chaudhary Charan Singh University, Meerut)
BY – PASS ROAD PARTAPUR, MEERUT - 250002

Date: ………………….

Certificate

This is to certify that Mr. CHIRAG AHUJA is a bona fide student of BBA 5th

semester in our Institute. He has submitted the Research Project Report titled

MARKET STRATEGIES OF HERO MOTOCORP LTD to fulfill the partial

requirements of Chaudhary Charan Singh University, Meerut. He has completed

Research Project Report under the guidance of Mr. DUSHYANT SHARMA

Name of Project Guide: Mr. DUSHYANT SHARMA Prof. (Dr.) RAKESH KUMAR
Designation: Assistant Professor Director
BBA/BCA Department

1
 DECLARATION
I hereby declare that the work presented in this report entitled “MARKET
STRATEGIES OF HERO MOTOCORP LTD” was carried out by me. I have not
submitted the matter embodied in this report for the award of any other degree or diploma
of any other University or Institute.

I have given due credit to the original authors/sources for all the words, ideas, diagrams,
graphics, computer programs, experiments, results that are not my original contribution. I
have used quotation marks to identify verbatim sentences and given credit to the original
authors/sources.

I affirm that no portion of my work is plagiarized, and the experiments and results
reported in the report are not manipulated. In the event of a complaint of plagiarism and
the manipulation of the experiments and results, I shall be fully responsible and
answerable.

Name: CHIRAG AHUJA

Roll. No.: R200968105007

(Candidate Signature with date)

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 ACKNOWLEDGEMENT

‘When a person is helped, guided and co-operated, his or her heart is bound to
pay gratitude.’
It is not a single man‘s effort which is sufficient for the accomplishment of a
Research .Various factors, situations and persons integrate to provide the
background. Accomplishment of a task requires the effort of so many people.
I acknowledge here the names of those people who have been instrumental in
preparation of this Research.
I am sincerely indebted to Dr. RAKESH KUMAR (Director of BBA/BCA
Department) and Mr. DUSHYANT SHARMA (Project Head) for their valuable
inspirations and suggestions to undergo this study and their unstilted help which
they gave for the completion of this Research.
My grateful thanks are also due to various other technocrats who inspired of their
multifarious pre-occupation, were kind enough to spare time to grant me personal
help and others cooperative activities.

CHIRAG AHUJA

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 TABLE CONTENTS
TITLE PAGE……………………………………………………….………….

COLLEGE CERTIFICATE…………………………………..…………...

STUDENT DECLARATION……………………………………..………

AKNOWLEDAGMENT……………………………………………………

PREFACE………………………………………………….....…………

CHAPTER-1

 EXECUTIVE SUMMARY……………………………………………….8

 COMPANY PROFILE……………………………………………………9

 AUTO INDUSTRY- A REVIEW……………………………………….16

 OBJECTIVE……………………………………………………………..21

CHAPTER-2

 RESEARCH METHODOLOGY ………………………………………22

 REVIEW OF LITERATRUE…………………………………………...23

 MARKETING STRATEGIES…………………………………………..38

 SWOT ANALYSIS..…………………………………………………….56

 SALES PROMOTION…………………………………………………..61

 PUBLICITY……………………………………………………………..63

 COMPARATIVE MARKETING STRATEGIES………………………66

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CHAPTER-3
 FINDING & DATA INTERPRETATION……………………………...72

CHAPTER-4
 CONCLUTION……………………………………………………………85

 LIMITATIONS……………………………………………………………86

 SUGGESTION…………………………………………………………….87

CHAPTER-5
 BIBLIOGRAPHY………………………………………………………….88

 ANNEXTURE……………………………………………………………..89

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 EXECUTIVE SUMMARY

This is a Summer Training Project Report, on the project titled, ―MARKET

STRATEGIES OF HERO MOTOCORP LTD IN MEERUT CITY.

To collect the required data a questionnaire was prepared for customer and retail sector. After
collection of data, it was interpreted and analyzed.

Customers data after analysis showed fallowing results:-

1. The consumer mostly demands for particular brands of a motorcycle. And the most
preferred motorcycle are ,Hero ,Bajaj ,TVS and other motorcycle.

2. 90% of the customer are satisfied with the service of the company. While 10% of the
customer complained about non satisfied through the hero moto because they want to
discount and more facility from the company.
The above data has been discussed in detail with illustrations and tables further In the report.
There was also some suggestion from customer. Which also has been placed latter in the report.

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 AUTO INDUSTRY- A REVIEW
INTRODUCTION

The Rs. 5500 crore Indian two wheeler segment is the second largest market fin the world after
China. India‘s two wheeler production is the third largest in the world after Japan and China.
India has a well- developed two wheeler market with around 25 million households owning two-
wheeler.

The Indian two wheeler industry made a modest beginning in the early 1950 when Automobile
Product of India ( API ) started manufacturing scooter in India. Until 1958. API and Enfield(
motorcycle) were the only two in production. In 1948, Bajaj auto began trading in imported
Vespa scooter and the three – wheeler- finally, in 1960‘s. it set up shop to manufacturer them in
technical collaboration with piggaio of Italy. The agreement expired in 1971. In the initial stages,
the scooters segment was regulated regime, foreign company was not allowed to operate in India,
and waiting time for getting Bajaj scooters was as high as 12 years. Java, and escort. While the
Enfield bullet was a four strokes bike, the Java and Rajdoot were two-strokes bikes. The
motorcycles industry was originally dominated by Enfield with 350 cc bikes. The motorcycles
industry was cc segment. The two wheelers segment was opened up to foreign competition in
the mid 1980‘s which saw the entry of the Japanese manufactures into the country.

CLASSIFICATION OF THE INDUSTRY

The two-wheeler segment can be categorized into the scooter, mopeds, and motorcycles.

Motorcycles: this segment has shown the best performance in the recent years. The market
leaders in this section are Bajaj Auto. TVS, Mahindra, Hero Hero. [The splendor is the most
popular segment among motorcycles.]

Two Wheeler Industry

It wasn‘t an easy year for the two wheeler industry. Rising interest rates and the economic
slowdown resulted in delayed consumer decision making and a rise in loan defaults. Over the
course of the year, banks withdrew financing facilities from satellite towns. The share of
financing, which had increased rapidly to 50-60 per cent of the total retail sales by early2011, has
now come down to below 30 per cent.

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This came as a major setback for the two-wheeler industry.

Ongoing government investments very clearly emphasis inclusive growth through improved
connectivity, job-creation and improving quality of life. The rural road outlay has been upped by
close to 60 per cent, the budget for the Urban Renewal Mission has been hiked by 87 per cent,
and fund allocation to the ongoing National Highways program has been upped by 23 per cent.
Importantly, India has added fresh impetus to its flagship job creation program for rural India:
the National Rural Employment Guarantee Scheme. During 2008-09, this scheme, which
provides 100 guaranteed days of work a day for the country‘s rural poor, provided employment
opportunities to more than 44 million households last year; a year ago, 33 million households
were covered.

During the year, there have been important developments in two-wheeler industry. The
competition has strengthened though there are hardly any new entrants into the industry. There is
an increasing emphasis on price and this has led to cost cutting efforts all across the industry,
thereby, making the customer an ultimate beneficiary. The trend also saw introduction of new
motorcycles with capacity ranging from 100 to 250cc bikes. We anticipate that many more new
models will be launched during the year and provide customers plenty of choice at competitive
prices.

Businesses cannot consistently grow at 25-30 per cent. Each business has a tendency to taper and
plateau after attaining a particular size. An annual growth rate of 10-12 per cent over a period of
time is extremely healthy.

The TCS study rankings are conducted at the motorcycle segment-level to provide comparisons
among similar groups of motorcycles. Motorcycles ranking highest in their respective segments
for TCS are: Hero Motors Corp splendor plus (best standard motorcycle segment); Bajaj pulser
(best executive motorcycle segment); Hero Motors Corp karizma (best premium motorcycle
segment); and Royal Enfield Bullet Electra (best cruiser motorcycle segment). "The relatively
low score for the executive segment indicates that most manufacturers have fallen short of
meeting the high expectations of these buyers,".

Production, sales growth of the industry

The two-wheeler companies have been operating at high capacities due to high growth rates
between 2012 and 2013. The growth is expected to lead to increase in the capacities from present

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52 lakh units to 65 lakhs per annum in the year 2013-14, whereas the actual production estimates
by that period at an estimated growth rate of 18% is only 60 lakhs.

Charts showing two-wheeler industry growth rates

Demand

In India the two-wheeler provide an easy and popular mode of personal transport for the middle
classes. With public transportation system being inadequate and ineffective the demand for the
two-wheeler is likely to rise. The two-wheeler sales are expected to touch the 5 million mark by
the end of the decade as against the annual sales of 35,49,271 in 2012-2013

Technology

With liberalization and the increasing competition. The two- wheeler industry has witnessed
technological changes. The four- stroke engine is being introduced in place of the traditional
populations and fuel inefficient two stroke engine. The smaller capacity engine with the
electronic fuel injection is also being used. Bajaj auto is now feeling the need to increase its
technological competence. Wit the competition cashing in on the technological competence for
their collaborators. Emphasizes being laid on lighter and fuel- efficient vehicles. A class of
vehicle having fuel efficiency of a moped and sleekness and style of the motorcycles called
scooterette is growing. The vehicles offer a fuel efficiency of 60-65 km p/h. They enter into new
segment,Bajaj Auto has come out with TVS with Scooty pep and Hero Motors Corphas come out
with a Pleasure and upgraded version of sleek..

Two –Wheeler Financing

Though two-wheeler are the most preferred from of transport in India,the fact remains that it is a
lower end market product. Most two-wheeler manufacturer like Bajaj Auto and kinetic
engineering have set up their own finance company since organized financiers do not think the
returns are particularly attractive. The argument given by some financiers is that the price of a
Yamaha or Hero Motors Corpis so high that people prefer to buy a second hand car instead. This
is particularly true of small town where people desire to own a car and they have the means the
two wheeler is then only a second vehicle for the family.

MARKET MECHANICS:

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Since 1985, when the first Hero Motors Corpit has been and instant hit. A mileage miser with
just about adequate performance further backed by image of Hero and Hero Cycles brand of
aggressive marketing, it climbed up the sales chart outselling every other motorcycle by ten of
thousands every year.

Over the years, company has received its share of accolades, including the National Association
of India Award against 200 contenders.

SEGMENTATION, TARGETING & POSITIONING

From the current segmentation, targeting & positioning and consumer surveys we found that our
client has targeted the following segments:

 Congested areas of urban cities.

 Males/Females between the age group of 18-36

 Middle class people , mostly officials & executives

The client analysis from our questionnaire it was found that our client has targeted the right
segment

HHML is overlooking one feature in bike which is its low maintenance cost and reliability (i.e.
less chances of breakdown) which is absent in its competitors. Therefore, in order to meet the
sales target, two option are available with the client, one is to redesign the bike and second is to
reposition the bike as ―Bike with one time investment‖. Since redesigning of bike may involve a
big task and huge investment therefore we recommended repositioning the bike.

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 COMPANY PROFILE
Hero Motocorp Ltd

"Hum Main Hai Hero"

Type Public company

Traded as BSE: 500182

NSE: HEROMOTOCO
BSE SENSEX Constituent

Industry Automotive

Predecessors Hero Honda Motors Ltd.

Founded 19 January 1982

Headquarters New Delhi, India

Area served India, Sri Lanka

Key people Dr. Brijmohan Lall Munjal (Chairman)

Pawan Munjal (MD & CEO)[1]

Products Motorcycles, Scooters

Revenue 241.66 billion (US$3.9 billion) (2013)[2]

Operating 33.22 billion (US$540 million) (2013)[3]

income

Net income 21.18 billion (US$340 million) (2013)[2]

Total assets 53.08 billion (US$860 million) (2013)

Employees 5,842[2]

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 Parent Hero Group

Subsidiaries Erik Buell Racing(49.2%)

Website www.heromotocorp.com

Hero Motocorp Ltd., formerly Hero Honda, is an Indianmotorcycle and scooter manufacturer
based in New Delhi, India. The company is the largest two wheeler manufacturer in the world. In
India, it has a market share of about 46% share in 2-wheeler category. The 2006 Forbes 200
Most Respected companies list has Hero Honda Motors ranked at #108. On 31 March 2013, the
market capitalisation of the company was INR 308 billion (USD 5.66 billion).
Hero Honda started in 1984 as a joint venture between Hero Cyclesof 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. Subsequently, in August 2011 the company was renamed Hero MotoCorp
with a new corporate identity.
In June 2012, Hero Motocorp approved a proposal to merge the investment arm of its parent
Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split
from Honda Motors.

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History
"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 –
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 largest two-wheeler manufacturing
company in India and globally.[2] It maintains global industry leadership till date.[2] The
technology in the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–2010)
has come from the Japanese counterpartHonda.[12]
 1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)
 1975—Hero Cycles becomes largest bicycle manufacturer in India.
 1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
 1984—Hero Honda Motors Ltd. incorporated
 1985—Hero Honda motorcycle CD 100 launched.
 1989—Hero Honda motorcycle Sleek launched.
 1991—Hero Honda motorcycle CD 100 SS launched.
 1994 – Hero Honda motorcycle Splendor launched.
 1997—Hero Honda motorcycle Street launched.
 1999 – Hero Honda motorcycle CBZ launched.
 2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched.
 2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition
launched.
 2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor
plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle
Karizma launched.
 2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle
CBZ Star launched.

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 2005—Hero Motocorp SuperSplendor, Hero Honda motorcycle CD Deluxe,
Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever
and Hero Honda Scooter Pleasure.
 2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of
Hero Honda motorcycle CD Deluxe, New Models of Hero Honda
motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.
 2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,
Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro
launched.
 2009—New Models of Hero Honda motorcycle Karizma:Karizma – ZMR and
limited edition of Hero Honda motorcycle Hunk launched
 2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero
Honda motorcycle Hunk and New Hero Honda Motorcycle Super
Splendor launched.
 2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ
Xtreme, Karizma launched. New licensing arrangement signed between
Hero and Honda. In August Hero and Honda parted company, thus
forming Hero MotoCorp and Honda moving out of the Hero Honda joint
venture. In November, Hero launched its first ever Off Road Bike
Named Hero "Impulse".
 2012-New Models of Hero Motocorp Maestro the Musculine scooter and
Ignitor the young generation bike are launched.
 2013-Hero MotoCorp unveiled line-up of 15 updated products including
Karizma R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF
Deluxe ECO, Hero Motocorp SuperSplendor, Passion Pro and Xpro,
Glamour and Glamour FI etc. It also introduced three new technologies-
Engine Immobilizer in new Xtreme, Integrated Braking System (IBS) in
new Pleasure and i3S (Idle Stop and Start System) in new Splendor
iSmart
 2014-Hero MotoCorp Launched Splendor Pro Classic, Xtreme Sports and new
models of Karizma ZMR, Karizma R, Maestro and Pleasure.

14
  Termination of Honda joint venture
 In December 2010, the board of directors of the Hero Honda Group had decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a phased
manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda.

 With a modest start in 1956 as a small manufacturer of cycle parts, O. P. Munjal Group
Of Companies steadily evolved into an integrated manufacturing engineering solutions
provider, with a family of more than 30,000 employees, as many as 7,500 outlets and a
total number of 23 companies around the globe. Progressing by leaps and bounds, the
company went on adding more and more feathers to its cap. Soon after starting as a
manufacturer of cycle parts, the company started producing complete cycles. Currently,
Hero Cycles is the world‘ leading cycle producer, with more than 100 million bicycles
running on Indian roads alone. In 1978, the company forayed into the moped market.
Hero Motors was set up in 1988, when the company joined hands with Steyr Daimler
Puch of Austria. In the subsequent years, Hero started a joint venture with acclaimed
automaker Honda to produce Hero Honda motorcycles.

The saga of success, whose foundation was laid by Late Mr. Dayanand Munjal, Mr. Satyanand
Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal, is being continued with the same zeal
& passion by the second and third generations of the family that is internationally acclaimed for
its business acumen and entrepreneurial spirit.

International financial body - World Bank has applauded Hero Cycles, describing the company
as a role model in vendor development. The huge O. P. Munjal Group Of Companies now boasts
of a number of companies that rule the roost in their respective fields. It proudly stands among
the top 10 Business Houses in India. The strength and massiveness of the Group can be
determined from the fact that it has annual revenue of around US$5.2 billion.

The O. P. Munjal Group Of Companies has been evolving with the passage of time. The best
quality and competitive prices of the products have empowered the group to have an edge over
its competitors and win the trust of the customes. With local stocking and logistical hubs in all
the main markets, the Group is in a position to cater to the needs of the customers from around
the world. Customized service part as well as customized documentation has enabled it to
efficiently meet the diverse needs of the customers.

15
Effective use of skilled labor, and cutting-edge technologies has resulted in the unprecedented
growth of the Group. Keeping abreast of the trends in the automotive industry and the changing
needs of the customers, O. P. Munjal Group Of Companies is continuously launching innovative
products in the market. The Group is advancing, building long-term relationship with the clients
and expanding its business empire.

Hero Motors Group is equipped with state-of-the-art manufacturing facilities. All the units are
located at strategic locations for the unique advantages that each place offers. A workforce of
dedicated professionals are efficiently operating and managing the facilities and leading the
organization towards the pinnacle of achievements.

The expertise of Hero Motors is powered by innovations. Making use of the latest technology,
the experienced professionals develop unique products that create great demands in the market.
It‘s the endeavor of the Hero Motors to innovate the best that will facilitate its clients to get the
most sophisticated products at the most reasonable cost.

Quality & Testing

The highest level of quality standards is maintained in all the processes and procedures. Utmost
importance is given on maintaining the optimum level of quality at all levels from raw material
testing, patrol and stage inspection to final inspection. The latest machineries are used in all the
processes. In-house facilities have enabled it to maintain uniform quality standards. Total quality
is achieved through implementation of Quality Management Systems.

State-of-the-art testing and measuring equipments ensure perfect quality of all the products. All
the components are first stimulated on computers to ensure accuracy and then brought together
as parts. The company is equipped with CMM, fatigue testing equipments, metallurgical
microscopes and image analyzer, hardness testers, surface roughness tester for ensuring the
perfection and precision.

Design & Validation

Hero Motors is equipped with the most modern equipment for producing tooling and dies. It
has led to the development of a wide range of innovative products catering to the diverse needs

16
of the clients. The company designs the products after critically analyzing the requirements of
the clients. The specifications are developed as per the demands.

The company offers design freedom and dimensional accuracy as well as simplified finishing
operations and reduced machining requirements. CAD / CAM is done using the latest software.
It possesses High Pressure Diecasting Machines. The various ranges of castings are made from
certified metals. Apart from applying advanced technologies to negate production errors, Hero
Motor‘s qualified experts supervise the automated processes round-the-clock.

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 Vision & Mission of the company

Hero Motors Corp now the leader in the two wheeler industry. Leaders are not born, they evolve
over time. It all started on the auspicious. ―Baisakhi Day‖ the 13th of April 1984, when the Hero
Motors Corp Company joined hands. On its journey to take on the No. 1 morale, Hero Motors
Corp created some prominent milestones…..

This leadership has been achieved only because of its philosophy to excel in all areas. In fact,
passion to excel is a credo of the entire Hero Motors Corp family and is a way of life in Hero
Hero. The changing Scenario of increasing competition and the entry of new brands has made
the credo even more relevant. It serves as a constant reminder to ensure excellence in providing
service to the customer. They are providing outstanding customer service.

It is in keeping with Hero Hero‘s own passionate commitment to provide ultimate customer
satisfaction. Today, they consistently meet and exceed all requirement on quality, cost and
delivery.

O. P. Munjal Group Of Companies aspires to deliver the best and the most cost-effective
products & solutions empowered by superior technologies. The Group is committed to ensure
value for money by developing high-quality, environment-friendly and efficient solutions that
fulfill the diverse needs of customers.

“At Hero Motors, we are committed to give our best and achieve the highest standards in
Performance, Quality, Systems, Care and Relationships. And then we want to beat these high
standards and go further…because anything that can be done, can be done better.”

-Pankaj Munjal- Managing Director, Hero Motors Ltd.

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 WORK AVERMENT

Hero Group is well aware of the fact that performance of the highest degree can be achieved only
if employees feel empowered and appreciated. The Group believes that the quality of its products
can not be separated from the quality of lives of the employees working at the Group. That is
why Hero Group gives top priority to the working environment & welfare of the workforce.
Manufacturing facilities are designed keeping employees‘ needs in mind. The state-of-the-art
manufacturing plants are equipped with environment-friendly technology that poses no threat to
the health of employees as well as surroundings. Special measures like noise damping and
planting trees in the premises of the plants make the environment more pleasurable. In addition,
the Hero Group employees benefit from an all-embracing range of education and welfare
programs.

Growth Prospective

Hero Group has established itself as a driving force in the industrial sector of India. The Group
through its subsidiaries and joint ventures employs more than 30,000 employees and has
established a worldwide presence with more than 20 companies and around 7,500 outlets. For
employees, the Group has always remained a trusted mentor to offer long term, gratifying and a
satisfying work environment. The Group expects its human resources to be seen by customers as
affable in their approach and professional in their practice. Talent always gets a warm welcome
at the Group.

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 BOARD OF DIRECTOR

Mr. Pankaj Munjal,

Mr. O.P Munjal, Chairman
Managing Director

Ms. Charu Munjal, Whole Time Mr. Gian Prakash

Director Sood, Director

Mr. S.K. Rai,

Mr. Sandeep Dinodia, Director
Director

Mr. Rakesh Jinsi, Additional Mr. Deepak Mohla,

Director Additional Director

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 Objectives of the company

Hero Hero’s mission is to strive for synergy between technology, systems

and human resources, to produce products and services that meet the quality,

performance and price aspirations of its customers. At the same time maintain

the highest standards of ethics and social responsibilities.

This mission is what drives Hero Motors Corp to new heights in excellence and

helps the organization forge a unique and mutually beneficial relationship with

all its stake holders.

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 ACHIEVEMENTS

AWARDS AND ACCOLADES

Year Awards & Recognitions

2012 ET Awards for Corporate Excellence - Hero Motors Corpis the winner of the ―Company
of the Year" award for 2012 - 13.
2012 NDTV Profit Business Leadership Award 2012 - Hero Motors CorpWins the Coveted
"NDTV Profit Business Leadership Award 2012"
Top Gear Design Awards 2012 - Hunk Bike of the Year Award
NDTV Profit Car India & Bike India Awards - NDTV ―Viewers‘ Choice Award‖ to
Hunk in Bike category
India Times Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty
Awards - ―Customer and Brand Loyalty Award‖ in Automobile (two-wheeler) sector
Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of
business innovation and transformation) - Best Customer Loyalty Program in Automobile
category
NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:
 No.1 executive motorcycle Splendor NXG
 No.1 standard motorcycle CD Deluxe
 No.1 premium motorcycle CBZ Xtreme

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 MARKETING STRATEGIES
Hero Motocorp has 35% of Hero‘s sales in the world and Hero Motor of Japan is proud to be
associated with Hero Corp. As a staunch supporter, with technology and brand support from the
global power house, Hero Motors, Japan, would immensely boost the business prospects in the
country despite the onslaught of serve competition in the market place. ‗ it is our avowed aim
that Hero Motors‘, scooters and Hero Corp‘s motorcycles would together corner 65% of the
market share of two wheeler in the country‘.

Primary among these were the National Customer Survey by IMRB with a record 25,000
interviews, making it the largest two-wheeler survey. This way followed up by the National
Customer satisfaction survey in September 2008. In keeping with ―Top Gear‖, the company also
reestablished customer finance tie-ups with Tata Finance. In the present Scenario, this is
available in 170 towns and to 232 dealers a leading to a current volume of around 15000 per
month. This represents as much as 40% of the total customers financing .

The dealers finance tie-ups with Citibank and Centurion Bank. The current sanctions to as many
as 189 dealers were worth Rs.110Crore, he revealed. There had also been no opportunistic ad
hoc price increases. The company also took positive steps to facilitate the dealer ―Authorized
representative service extension policy. The corporate commitment to ―we are‖ and the
company‘s emphasis on environment protection also resulted in opening the first effluent
treatment plant at a dealership. New service training centers were also established at Delhi and
Chennai.

While quarterly product reviews were conducted with the factories, a unique programme of joint
visits with quality department land Japanese staff was also introduced. On the spare parts front,
multiple increases in spare policy was also overhauled and new, innovative actions were taken
leading to a volume of over 6,000 bikes in the current year itself.

The company also associated itself actively with sponsorship of armed forced rallies, notable
among them being the Kargil Rally and the AOC Rally. While this built up its relationship with
premier customers, the initiatives taken on other priority fronts were equally effective.
Showroom standardization was effectively detailed. World event sponsorships also helped the
company to achieve global exposure for its brand.

23
The company‘s entry into the tournament events sponsorships was equally successful. Its
sponsorship of Hindi Cinema awards(Millennium Honors held in Mumbai in January 2008, was
followed up by sponsorship of Bengali cinema (BFJA Awards –Calcutta, August 2008) and then
South Indian Cinema (Cinema Express Awards- Chennai, November 2008).]

A laudable achievements was also the signing of the two top Leaders, veritable ‗Desh ki
Dhadkan‘ in the field of sports (Cricket), and entertainment (Hindi films), three years. Priyanka
chopra and Hritik Roshan the two stalwarts in their fields are also designed as brand
ambassadors for Hero Motors Corpfor a period of three years.

The national Launch of the Hero Motors Corppassport programme specifically targeted at
enhancing customers relationships, the implementation of the Hero worldwide safety riding
campaign at dealer Level, and support extended to dealer during the customers satisfactions
survey.

To streamile operations and sales administration, the company also introduced the service
excellence awards for SSP‘s decentralized the settlement of free service

24
25
26
27
HERO MOTOCORP LTD. (HEROMOTOCO) - COMPANY HISTORY

Hero MotoCorp Limited is the world's largest manufacturer of two wheelers'. The Company has

four manufacturing facilities namely Dharuhera and Gurgaon in Haryana Haridwar in

Uttarakhand and Neemrana in Rajasthan. The Company is based at New Delhi India. The

Company offers a range of bikes starting from CD Dawn CD Deluxe Splendor Plus Splendor

NXG Passion and Passion Pro. The 125 cubic centimeter segment offers Glamour Super

Splendor and Glamour F1. It also has an offering called Achiever in 135 cubic centimeter

segment. In the 150 cubic centimeter and above the company offers brands like Hunk CBZ X-

treme Karizma and the Karizma ZMR. It also offers a 100 cubic centimeter scooter

Pleasure.Hero MotoCorp Limited was incorporated in January 19th 1984 under the name 'Hero

Honda Motors Ltd.' The Company was established as a Joint Venture Company between Honda

Motor Company of Japan and Hero Group. In year 1983 they signed a Joint Collaboration

Agreement and formed the Company. The joint venture between India's Hero Group and Honda

Motor Company Japan has not only created the world's single largest two wheeler company but

also one of the most successful joint ventures worldwide.In the year 1985 the Company

commenced their commercial production at Dharuhera plant in Haryana and introduced their first

motorcycle CD 100 in the market. In the year 1989 they launched the new motorcycle model

Sleek in the market and in the year 1991 they introduced new motorcycle model CD 100 SS in

the market. In the year 1995 the company introduced their extraordinary product Splendor in the

market.In the year 1997 the Company inaugurated their second manufacturing facility at

Gurgaon in Haryana. Also they introduced new motorcycle model Street in the market. In the

year 1999 they launched Hero Honda CBZ the first 150cc motorcycle in the Indian two wheeler

industry. In the year 2001 the company introduced new models Passion and Joy in the market. In

the next year they introduced new models Dawn and Ambition in the market.In the year 2003 the

28
company launched new motorcycle models namely CD Dawn Splendor+ and Passion Plus in the

market. Also they launched Hero Honda Karizma the industry's first 223cc motorcycle. In the

year 2004 they introduced new models Ambition 135 and CBZ* in the market. During the year

they renewed the joint technical agreement with the Honda Motors Company Japan.In the year

2005 the company launched Super Splendor CD Deluxe Glamour and Achiever in the market. In

the year 2006 the company forayed into scotter segment and launched 100cc gearless scotter

Pleasure in the market. In the year 2007 the company launched Splendor NXG CD Deluxe

Passion Plus and Hunk in the market.During the year 2007-08 the company commissioned their

third plant at Haridwar in Uttarakhand with an initial installed capacity of 500000 units. This

plant had lean manufacturing and practices that ensure efficiency. During the year the company

launched new models (including variants) including Splendor NXG Hunk New Super Splendor

New Passion Plus Commemorative Splendor+ and a refreshed version of Pleasure. During the

year 2008-09 the company increased the installed capacity of Motorised 2 wheelers upto 350CC

engine by 1800000 Nos to 5200000 Nos. Also they launched eight models: Passion Pro (100

cubic capacity-4 Stroke) CBZ-Extreme (150 cubic capacity - 4 Stroke) Pleasure New Aesthetics

Splendor NXG (Self Start) CD Deluxe (Self Start) Glamour FI Glamour (Carb) and HUNK

Special Edition. Also they launched new motorcycle model Karizma - ZMR in the

market.During the year 2009-10 the company increased the installed capacity of Motorised 2

wheelers upto 350CC engine by 200000 Nos to 5400000 Nos. The company launched nine new

models during the year. During the year 2010-11 the company launched six new models

including variants of existing models successfully. They refreshed Glamour and Glamour FI.

They introduced the New Hunk Super Splendor and Splendor Pro. The company launched the

new upgraded versions of CBZ Xtreme and Karizma. Also they breached the landmark 5 million

figure cumulative sales in a single year. During the year the Indian Promoter Group of the

company which comprised of Hero Investments Pvt Ltd (HIPL) Bahadur Chand Investment Pvt

29
Ltd (BCIPL) and Hero Cycles Limited (Hero Cycles) re-aligned the shareholding in the company

following a family agreement. As a result Hero Cycles transferred its shareholding in the

company to HIPL on May 28 2010. As a result of these transactions the Indian Promoter Group

of the company now comprises of HIPL and BCIPL owned and controlled entirely by the Munjal

Family headed by Brijmohan Lall Munjal. Also during the year the Indian Promoter Group and

Honda Motor Co Ltd Japan (Honda) entered into a Share Transfer Agreement (the Agreement)

on January 22 2011. As per the terms of the Agreement Honda had agreed to transfer its entire

shareholding of 26% in the Company to the Indian Promoter Group bringing an end to the joint

venture between the two promoter groups of the company. The acquisition was completed on

March 22 2011 and the shares held by Honda were transferred to the Indian joint venture

partner.In addition to the Agreement the Indian Promoter Group and Honda also entered into a

License Agreement on January 1 2011. As per this agreement Honda has given to the company

the right and license to manufacture assemble sell and distribute certain products and their

service parts under their Intellectual Property Rights.In July 2011 the company changed their

name from Hero Honda Motors Ltd to Hero MotoCorp Ltd. In February 2012 the company

entered into a strategic partnership with Erik Buell Racing (EBR) of USA for contemporary

technology and design inputs to enable the company to launch high end bikes for the domestic

and international markets.In 2013 Hero Motocorp commenced construction of its new plant &

Global Parts Centre. The company Commences Construction of Its 'GAME-CHANGING' Centre

of Global Innovation And Research & Design. In 2014 Hero Motocorp Heralds A New Era Of

Technology Leadership. The company Sets New Benchmark For The Global Two Wheeler

Industry. The company Launches Splendor Ismart With Game Changing I3s Technology. The

company also rides Into A Greener Tomorrow With 'GARDEN Factory'In 2015 Hero MotoCorp

launched a new entry level commuter the HF Dawn. During the year the company has been

allocated a 592-acre site to facilitate development of its Rs 1600-crore Greenfield manufacturing

30
unit in Andhra Pradesh. HMCL Americas INC enters into 'Settlement Agreement' to Acquire

EBR's Consulting Business. The company commences operation in their first ever plant outside

India established in Villa Rica Colombia.On 29 September 2015 Hero MotoCorp launched two

scooters under the brands Maestro Edge and Duet.In February 2016 Hero MotoCorp showcased

three new bikes Splendor iSmart 110 the Xtreme 200 S the XF3R and an electric scooter the

Duet E at Auto Expo a trade show in New Delhi. On 10 March 2016 Hero MotoCorp formally

inaugurated its world-class `Global Centre of Innovation and Technology' (CIT) in Jaipur

Rajasthan. Built with an investment of Rs 850 crore the CIT will design and develop world-class

products for global markets.In April 2016 Hero MotoCorp launched a drive against unscrupulous

traders selling counterfeit Hero spare parts. On 14 July 2016 Hero MotoCorp launched the new

Splendor iSmart 110 the first motorcycle to be developed completely in-house with Hero's own

technology. To commemorate the landmark 70 million in cumulative production of two-wheelers

Hero MotoCorp on 26 September 2016 launched a Limited Edition of a new premium

motorcycle Achiever 150. The Board of Directors of Hero MotoCorp at its meeting held on 26

October 2016 approved an investment of up to Rs 205 crore in one or more tranches for

approximately 26-30% shareholding in Ather Energy Private Limited. Ather is a Bangalore-

based technology start-up engaged in the business of designing and manufacturing smart Electric

Vehicles (EV) and associated charging infrastructure.On 10 November 2016 Hero MotoCorp

31
unveiled its new Dawn 125 motorcycle at the EICMA Motorcycle show in Milan Italy. As part

of Hero MotoCorp's market-specific product strategy the Dawn 125 motorcycle has been

developed specifically for the Africa region.On 12 January 2017 Hero MotoCorp launched new

Glamour motorcycle in Argentina its first-ever global launch of a new product outside India. On

3 April 2017 Hero MotoCorp announced that the company clocked its highest-ever sales in a

financial year at 6663903 units in FY 2017 compared to 6632322 units it had sold in the previous

fiscal (FY 2016).In May 2017 Hero MotoCorp commenced commercial production at the second

global manufacturing facility in Bangladesh. On 3 October 2017 Hero MotoCorp announced that

it has set a new global benchmark in the two-wheeler industry surpassing the seven lakh sales

mark in any month. Riding on robust demand for its range of two-wheelers the company

registered its highest-ever sales for any month despatching 720739 units in September 2017. On

11 October 2017 Hero MotoCorp announced that it has set a new global record clocking 2

million unit sales in Q2 September 2017. Hero MotoCorp sold 2022805 units of two-wheelers in

Q2 September 2017 recording 11% growth over the corresponding quarter in the previous fiscal.

On 7 November 2017 Hero MotoCorp unveiled the Xpulse Concept motorcycle as a world

32
premier at the EICMA annual trade show in Milan Italy. On 21 December 2017 Hero MotoCorp

unveiled three new motorcycles - the 125cc Super Splendor the 110cc Passion PRO and the

110cc Passion XPRO - to further augment its dominant leadership in the domestic market. On 22

December 2017 Hero MotoCorp announced that it will be increasing the ex-showroom prices of

its motorcycles by about Rs 400 per model with effect from 1 January 2018 to partially off-set

rising input costs. Hero MotoCorp surpassed the landmark seven million units in cumulative

sales in a calendar year in 2017. The company sold a record 7207363 units of two-wheelers in

the calendar year in 2017.During FY 2017-18 construction of sixth manufacturing facility at

Sricity in Chittoor District in the state of Andhra Pradesh has commenced with a proposed

capacity of 1.8 million units per annum. The company will invest Rs 1600 crore in setting up this

manufacturing facility. The plant is expected to be operational in FY 2019-20.During FY 2017-

18 the second overseas plant of the company at Jessore in Bangladesh started commercial

production during the first quarter.During the year 2017-18the Company added two markets -

Trinidad & Tobago and Guyana - to grow the countries in which HMCL is present in to 37.As on

31 March 2018the Company has 6 subsidiaries including step down subsidiaries and 3 associate

companies.During FY 2018-19 construction of sixth manufacturing facility at Sricity in Chittoor

District in the state of Andhra Pradesh has reached at an advanced stage with an annual installed

capacity of 1.8 million units.The Company has invested approx. Rs 650 crore in Phase I out of

total projected investment of Rs 1600 crore in setting up the manufacturing facility. Phase I is

expected to be operational by October 2019.Further the overseas plant of your Company at

Jessore in Bangladesh achieved its designed production capacity of 1.5 lakh units during FY

2018-19 and consolidated decent market share.As on 31 March 2019the Company has 7

subsidiaries including step down subsidiaries and 3 associate companies. During the FY2019the

Company has set up a Tech Center in Germany as its wholly owned subsidiary under the name

Hero Tech Center Germany GmbH.The Company sold over 78.21 lakh vehicles during the

33
financial year 2018-19 the highest by any two-wheeler company in the world.During FY 2019-

20 the Company's sixth manufacturing facility in Chittoor District in the state of Andhra Pradesh

was commissioned with Phase I installed capacity of 0.4 million units. The total Phase I

investment is approximately Rs 700 crore out of total projected investment of Rs 1600 crore in

setting up the manufacturing facility. Transition from BSIV to BSVI emission norms has been

successfully accomplished well in time across all platforms in FY 2019-20.As on 31 March 2020

Company has 6 subsidiaries including step down subsidiaries and 2 associate companies and

regularly monitors the performance of these companies. During the year the Company's wholly-

owned subsidiary HMCL (NA) Inc.

which had invested in Erik Buell Racing Inc. was dissolved and thus Erik Buell Racing Inc. also

ceased to be the associate of the company.In July 2020 the Company invested H 84 crore in

34
Ather Energy taking up its shareholding in the Company to 34.58%.In November 2020 Company

again invested in Series D round in the Electric Vehicle startup.In October 2020 the Company

signed a distribution agreement with HarleyDavidson (H-D) under which the Company will sell

and service H-D motorcycles and sell parts and accessories and general merchandise riding gear

and apparel in India. The Company has inducted 11 dealers of Harley-Davidson into its own

distribution network. Starting 01 January 2021 Hero MotoCorp Ltd. has become the distributor

for Harley-Davidson in India. Hero MotoCorp Ltd. and Harley-Davidson also signed a Licensing

agreement under which the Company will develop and sell a range of premium motorcycles

under the H-D brand name.During the FY2021 the company also entered into a strategic

partnership with Gogoror Inc. to accelerate the shift from fuel based mobility to sustainable

electric mobility in India.During FY 2020-21 the company entered into Mexico market and the

footprint of the company reached 41 markets outside India.On 04 February 2021the company

declared a special dividendof Rs 10 per share to mark the achievement of historic milestone of

achieving 100 Million cumulative production of two wheelers.The company proactively paused

its operations temporarily during the second wave at all of its manufacturing facilities across the

country including its Global Parts Center (GPC) in Neemrana and its R&D facility - the Centre

of Innovation and Technology (CIT) Jaipur due to the Operations escalation of Covid-19 cases

across the country. The company gradually resumed its operations from 17 May 2021 by starting

single shift production at three of its plants - Gurugram and Dharuhera in Haryana and at

Haridwar in the northern hill state of Uttarakhand.The company resumed production at all its

manufacturing plants in India from 24 May 2021.During the second quarter of FY2022 Hero

MotoCorp achieved two consecutive recognitions from the Guinness World Record for creating

the `Largest Motorcycle Logo' in August 2021 and for creating the `Largest Online Photo Album

of People Planting Plants' in September 2021.During the third quarter of FY2022the company

inaugurated a flagship dealership in Dubai to expand presence in the Gulf market to 10 customer

35
touchpoints in 5 countries.Also Partnered with Gilera Motors in Argentina to expand Hero's

presence in the country - inaugurated a flagship dealership in Buenos Aires under the

partnership.The Company has 6 subsidiaries including step down subsidiaries and 2 associate

companies as on March 31 2022.During FY 2021-22 the Company commenced retail sales in

Mexico and introduced an extensive portfolio of products.

It relaunched the Hero brand in markets like Argentina Kenya Honduras and Nicaragua. It

strengthened presence in Gulf region expanding networkof touchpoints including dealerships

service centres and spare parts outlets; it entered into another exclusive dealership in Dubai. It

reinvigorated strategy for the Nigerian market leading to a 978% dispatch growth. It also

launched a new motorcycle `Hunter' developed especially for the market. In March 2022

36
Company launched a new brand `Vida'-Powered by Hero an in-house electric vehicle brand. It

forayed into the pre-owned two-wheeler business under the brand `Hero Sure - Powered by

Wheels of Trust'. It expanded the network by adding super stockists authorized representatives of

dealers Hero Sure network and HGPD. It launched Xpulse 200 4V in October 2021. It launched

the new Stealth variant Xtreme 160R a fast-pick up bike. During the year 2022 45 new outlets

were added which increased their footprint to 43 markets outside India. It launched the official

Hero merchandise business in August 2021.

37
 MARKETING: AN INTRODUCTION

Marketing is a social and managerial process by which individuals and groups obtain what they
need and want through creating, offering and exchanging products and values with each other.
In this way marketing is a business function that identifies customer needs and wants, determines
which target market the organization can serve best, and designs appropriate products, services,
and programs to serve these markets.

Marketing is much more than isolated business function it is the philosophy that guides the
entire organization. The goal of marketing is to create customer satisfaction profitably by
building-value laden relationship with important customers as well as fulfill certain
organizational objectives.

People throughout the various kinds of organizations-product or service, profit or non-profit,

domestic or global, small or large, need to know how to define and segment a market and how to
position themselves strongly by developing need satisfying products and services for chosen
target segment. They must know how to price their offerings to make them attractive and
affordable and how to choose and manage intermediaries to make their products available to
customers. And they need to know how to advertise and promote products so customers will
know and want them.

The objectives can be achieved through the implementation of suitable marketing strategy by the
organization. It is the marketing logic that is formulated keeping in mind the needs of the
consumers and also strategies of the competitors. The 4 factors affect it are:

Product - The tangible offer to the market, which includes the product quality, design, features,
branding and packaging.

Price – The amount of money that customer pays for the product. The price of the product
should commensurate with its perceived value. If does not, the buyers will turn to competitors
products.

Place – Includes the various activities the company undertakes to make the product accessible
and available to a large number of target customers.

38
Promotion – The fourth marketing mix tool, includes all the activities the company undertakes
to communicate and promote its products to the target market. It consists of advertising, sales
promotion, public relations, and direct and online marketing.

Faced with unrelenting global competition, and ever more powerful and demanding customers,
companies across the world have come to realize that their old ways of operating – their long
standing methods for developing, making, selling and servicing products – are no longer
adequate. They have also discovered that their existing tools for improving operations are not
making a dent in persistent problems of high cost, poor quality and inadequate service. In order
to address these problems, these companies are taking measures more radical than they have ever
taken before. They have begun to re-engineer, they have ripped apart their old ways of doing
things and started with clean sheets of paper.

Hero Motors Corphas effectively evolved remarkable marketing strategies for its 4P‘s. It is
because of this that Hero Motors Corphas been able to come out a niche for itself. But before we
discuss the strategies for the 4Ps separately, it is imperative that we know about the marketing
strategy. This is what keeps the Hero Motors Corpgoing and have reinforced its leadership in the
motor bike segment.

MARKETING COMMUNICATIONS

―Walk the Talk‖ though Advertising, sales Promotion, Public Relations, through an emerging
Media, including the Web these things are done through.

 Promotional Methods

 Promotional Mix

 Advertisement

 Sales promotion

 Public Relations

 Event Management

 Media Management ]

 Budgeting

 Measuring Effectiveness

39
And much more………………..

The internet‘s greatest potential has been superbly exploited by the small business ventures to
reach customers directly. The market had virtually opened quickly to market changes by
providing accurate market intelligence, faster communication and greater planning time. This
helped to reduce the market volatility the dealer to understand the significance and value of e-
commerce and benefits of embracing the latest in information technology, and initiate concrete
steps to capitalize on it. The marketing is also done through sales promotions, Advertisement,
publicity, etc.

Strong dealer relationship expands the scope of the commercial paper programme in an
organization and Hero Motors Corpis doing that. They are doing the communication through
newspaper, magazines and television channels, etc.

40
 4PS OF MARKETING

PRODUCTS

Hero Hero, which has a technology tie-up with Japan's Hero Motors, was currently discussing
the feasibility of manufacturing scooters for the Indian market, Mr. Munjal said. However, the
company has a binding clause with Hero's scooter manufacturing Indian subsidiary, preventing it
from making scooters till 2008.

Hero Motors CorpMotors, India's largest motorcycle company, has launched the premium
segment 223cc motorcycle Karizma priced at Rs 79,000 (ex-showroom, Delhi). Many of the
products which the companies have started have been phased off. Now the existing products are
KARIZMA, CBZ X-TREME, HUNK, SPLENDOR+, ACHEIVER, PASSION+, SUPER
SPLENDOR, GLAMOUR, PASSION PRO, SPLENDOR NXG, CD DELUXE and
PLEASURE. Among these we are going to analyze only three – (1) CBZ X-TREME, (2)
KARIZMA and (3) Splendor+.

 KARIZMA

 CBZ X-TREME

 SPLENDOR+

The TCS study examines customer evaluations at three distinct ownership periods: 1 to 6
months, 7 to 18 months, and 25 to 36 months. This helps in understanding the differences in
satisfaction during initial ownership, in-warranty and post-warranty ownership periods.
Satisfaction ratings decline as the length of vehicle ownership increases. However, Hero Motors
CorpSplendor is among the few models to maintain consistency across the three ownership
periods.

41
 SPLENDOR+

The Ex-Showroom Prices

Delhi 38,500
Mumbai 39,000

Engine 4-stroke, OHC, single cylinder, air-cooled

Displacement 97.2cc

-Clutch type Manual

Clutch Primary -

Clutch Secondary Multi-plate wet

Transmission 4-speed constant mesh

Final Drive Roller chain

Ignition Kick starter

Starting Kick starter

Frame Double cradle tubular type

Suspension (Front) Telescopic hydraulic fork

Suspension (Rear) Swing-arm with hydraulic dampers

Dimensions (LxWxH) 1950x720x1040mm

Wheel Base 1230 mm

Ground Clearance 159 mm

Dry Weight 100.3 kg

Tyres:Front/Rear 2.75"x18"/2.75"x18"

Max.Power 7.2 PS @ 8500 rpm

Max.Speed 90 km/h

Fuel Tank Capacity 10.5 ltr (1.4 ltr reserve)

42
 CBZ X-TREME

Specifications

Displacement 150 cc

Power 14.6 PS @ 8000 rpm

Torque 14.2nm @ 6500 rpm

Acceleration 0-60 km/h in 5 seconds

Bore x stroke 63.5 mm x 49.5 mm

Compression ration 8.5:1

Type of brake

Front Disc type (130 mm diameter)

Rear Drum (130 mm diameter)

Type of engine 4-stroke, single cylinder, air-cooled,ATFT

Fuel Tank Capacity 12.5 liters (Full)

2.5 liters (Reserve)

Available in attractive colors

Black-Tahitian Blue-Candy Blazing Red - Sparkling Silver Metallic

Tasmania Green - Sienna Gold Metallic

* Hero Motors CorpCBZ meets the India 2001 Emission Norms.

** Specifications are subject to change without prior notice.

43
Check out these unique features

Transient Power Fuel Control (TPFC) System: For quick acceleration, providing a sudden surge
when required. A feature which is used in some of the most advanced cars.

Tachometer and Trip meter: Tachometer displays the engine rotation speed. And first time
feature - the Trip meter, measures the distance traveled in a trip. Dynamic Vibration Dampers:
The dampers incorporated in the handlebar, ensure that your ride is smooth and easy. Air
injection system: Inject fresh air into the exhaust port, to meet emission norms. Unique
Trapezoidal headlight: Gives the CBZ a distinctly stylish look and helps see clearly in the
darkest of night.

Multi lever Lockable seat: Provides storage space. It also doubles as an antitheft mechanism for
the CDI unit, R R Unit and the battery, as the side covers can be opened only after unlocking the
seat.

Zero crank case evaporative emission: A pollution control feature so advanced that it is for the
first time in India. keeping alive the Hero Motors Corptradition of special care for the
environment. So come, test ride the Hero Motors CorpCBZ -XTREME. Unplug your
imagination.

Motorcycling Unplugged

Equipped with 5 gears and a 150 cc engine that generates 14.6 PS power. Enough to take it from
0-60 km/h in just 5 seconds. And to effortlessly touch the top speed of 100 km/h. The CBZ-
XTREME also has the widest rear tyre - with a unique treat pattern that is not available on any
Indian motorcycle; and large, 130 mm drum brakes. Front disc brakes, it enhances the braking
performance.

44
 KARIZMA

Specification

Engine 4-Stroke, Single Cylinder, Air Cooled, OHC

Displacement 223 cc

Medium Power 16.8 BHP at 6000 rpm

Gar Box 5-Speed constant mash

Clutch Multi-plus wat type

Max speed 125 km/h

Acceleration 0 to 60 km/h in 3.8 seconds

Frame Single Cradle Tubular Diamond Type

Suspension (Front) Telescopic Hydraulic Front Fork

Suspension (Rear) Swing arm with 5 step adjustable Hydraulic shock

observer

Brake Type: (Front) 276 mm disc type

(Rear) 130mm drum type

Final Drive Roller Chain

Battery 12V-3 Ah (Kick Start) 12V-7Ah (Self start)

Ignition Digital CDI system (AMI)*

Starting Kick Starter/Self Starter**

Wheel base 1355 mm

Ground clearance 150 mm

Length 2125 mm

Width 755 mm

Height 1160 mm

45
Product Range and New Models:

The Company's product range includes "Splendor+" which is the largest selling
motorcycle brand in the world with over 10 lacs vehicles sold in 2008-09. A cumulative
over 40 million customers are the real foundation of the company's strength. The total shall
soon cross the 7 million mark. Its volumes have been growing at a strong pace of 40% p.a.
over the last five years.

The Company launched a new 100 cc model "Passion pro" in June 2008. The motorcycle is
focused on style and contemporary design, compared to the Company's earlier motorcycles
that were focused on utility and/or style. "Passion pro" has received an excellent response
from the market and has established itself well, with sales reaching a level of 29000 units in
august 2008, within just three months of its launch.

46
 PASSION PRO

Specification

Engine 4-Stroke, Single Cylinder, Air Cooled

Bore x Stroke 63.5 mm x 49.5 mm
Displacement 156.8 cc
Compression Ratio 8.5 : 1
Carburetor Side Draft Type (With TPFC)
Engine Oil Capacity 1.2 Litres
Clutch Multiplate Wet Type
Transmission 5-Speed, Constant Mesh
Final Drive Roller Chain
Ignition Electronic CDI
Starting Kick Starter
Frame Diamond Tubular Type
Fuel Tank Capacity 12.5 Litres (2.5 Litres Reserve)
Suspension (Fr.) Telescopic Hydraulic Fork
Suspension (Rr.) Swing Arm with 5-Step Adjustable Hydraulic Damper
Drum Version (130 mm Dia.) Disc Version - Caliper
Types of Brakes (Fr.) - Type
(Rr.) – Drum (130mm Dia.)
Dimensions (LxWxH) 2090 mm x 755 mm x 1115 mm
Wheel Base 1330 mm
Ground Clearance 150 mm
Dry Weight 130 kg
Tyres (Fr./Rr.) (2.75 x 18-42 P) /(100/90 x 18-56P)
Max. Power 12.8 PS @ 8000 rpm
Max. Torque 1.26 kgm @ 6500 rpm
Acceleration 0 - 60 km/h in 5 seconds
Max. Speed 100 km/h

47
Hero Motors CorpUnveils 225-cc Karizma ZMR

Hero Motors CorpMotors Ltd has launched 225-cc motorcycle ‗Karizma ZMR‘ (pronounced
karitzma), priced at Rs 91,000 (ex-showroom, New Delhi). Initially, the premium sports bike
will be rolled out in top 375 dealerships (out of its network of 450 dealerships) in 105 towns.
Company managing director Pawan Munjal hoped to sell around 30,000 units of Karizma in
2009-10. ‗‗Between Karizma and CBZ, we would sell over 55,000 units this fiscal. Margins are
certainly better than what we can get in entry-level bikes.‘‘

The company was currently working on the next generation of engines, which would drive a
wide range of products in the future, including a new batch of bikes targeted at the volume
segment in fiscal 2010-11.

The company has plans to rollout a couple of variants during September-October. Mr. Munjal
said that the company was waiting for the feasibility report which will be out in november 2009
to take a decision on whether to utilize the existing facilities for further capacity expansion or to
set up a separate Greenfield operation. ‗‗We‘ve already stretched capacities up by around 25 per
cent. We certainly need more capacity to grow,‘‘ Mr. Munjal said.
Hero Motors Corpis looking at double digit growth for volume sales, turnover, and PAT.
Company vice-president (marketing) Anil Dua said: ‗‗We are expecting double digit growth. A
clearer picture will emerge only after the first quarter.‘‘

Fill it ,Shut it and Forget it is the slogan that one remembers of Hero Motors Corpin the early
days of its bike campaigning. Now, is it moving towards shut it and forget it?? Let‘s see.

For years, Hero Motors Corphas dominated the 2 wheelers market with its CD100, splendor and
Passion (relatively new).Now, things are a bit different as there is a lot of cut throat competition
as the market is dancing to the tunes of the customer.CBZ-XTREME is a bike which is good at
looks but the same cannot be said about its performance.
With the launches of FZ16, GS150r and pulsar150(revised) there was a new segment which was
open where there was an emphasis on power and fuel economy also .And now, everybody is
vying to take the honors for leadership in this segment.

1)Price:

48
Somehow, this still is a major factor in India when people buy bikes. They cost around Rs.
38,000 to Rs 58,200 with the disc brakes in most cities and around Rs62,000 for the electric start
option.
2)Looks and Features:

We as humans, first form an impression about things by the way they look to our eyes and it goes
without saying that bikes should be appealing to the eyes.
Tank shape and contours: The tank is one of the components that make a bike look like Mr.
Handsome or Mr. Ugly.

AMI:Advanced Microprocessor Ignition system which facilitates a good mileage, pickup with
better control on ignition timing.
Colors: The Hero Motors Corpbikes come with 9 colors with at least 4 of them good for nothing.

3) Suspension ,Stability and Reliability:

Suspension: Should be definitely among the best in the class and should not be the prime
suspect for your back problems. Hero Motors Corpgives you adjustable shocks which can be
tuned for your liking.

Stability: Hero Motors Corpbikes are very stable as compared to any other bike manufacturer.

Reliability: bikes are extremely reliable and very low maintenance is needed.

4) Fuel economy and Electricals:

Fuel Economy: This definitely will play on the buying minds if the bike has to succeed.

Electricals: The lighting should be the best.

5)Fit and finish: The quality feel is on the higher side and it definitely gives a lot of satisfaction
when one owns one.

6)Specifications:
Engine, Displacement, Max power, Gear box, Frame, Cradle, Weight, Top speed, Fuel economy,
Braking, Electric start (Optional)

7) Riding impressions:

49
The pickup is on the faster side of decent and definitely bound to be of some help in the city
traffic for short and quick overtaking. The engine should sound soft. The seating position should
be comfortable.
8) Publicity: This is the critical aspect of any marketing strategy which has a great impact in the
minds of the youth who yearn to have a bike.

9) Verdict: This is the final decision which the customer makes after getting exposed to all the
steps said above.

PRICING

Pricing is a important component of marketing mix of the firm. Determining the prices of
different products of a firm is very difficult task of the marketing manager. Price denotes money
value of a product. If represent the amount of money for which a product can be exchange. In
other words, prices represents the money which the buyer pays to the seller for a product price
represent the exchange value of goods and services in terms of money. Price is all around.

Price factor has very well been touched by the manufacturers. The pricing strategy of the
company is very set. they price their product according to the cost of production and also by
keeping an eye on the price of the competitors of that segment and demand of the product in the
market.

A pricing strategy that ensured an average manufacturer margin that game dealer an adequate
return and created a reputation with consumers like ―a company selling a good quality product at
a reasonable price. Industry focus them selves the low cost producer with good quality and aimed
to maintain the price advantage in every market of two wheelers.

Hero Motors Corpgroup ensures an easily affordable pricing through excellent transportation to
common man. I fixes customer centric pricing that provide customer total satisfaction.

Hero Hero‘s pricing objectives are: List price, Discount , Financing schemes, Credit terms ,
Maximize profits

Hero Motors Corpgroup ensures an easily affordable pricing through excellent transportation to
common man. It fixes customer centric pricing that provides the customer with total
satisfaction.

50
DISTRIBUTION

HERO MOTORS CORPHAS direct contact with the dealers. There are no middlemen involved.
The dealers directly sell to the customers. The channel is of 1st level which has only the dealers
as the link between the customers and the company.

Distribution Channel

Manufacturer Dealer Customer

Sub-dealer

How Promptly The Work Done?

The dealers keep in contact with the manufacturer or the head office or the regional office. As
the order fax reach the manufacturer, as in Delhi it takes only one-nights time of transit from the
manufacturer to the dealer. The dealers in far off places like in Assam, South India and others, it
takes a maximum of 7 days to reach the placed order due to the transit.

Basically, the delay of delivery of the order is basically due to the transit time. The transit time in
near places is not more than one night.

How The Transit Done?

The manufacturer's have their own transportation facilities. The manufacturers have trucks which
can load 18-25 units of bikes at a time, individually. When the units are dispatched from the
factory, or manufacturing it, it is in its standard form and accessories like seat cover, handle
cover, back-looking glass and others are not part of the standard unit of the two wheeler of Hero
Hero.

The transportation trucks straightway reach the warehouses of the dealers. In case the warehouse
of the dealer is not there then the trucks straight away come to the dealers showroom where they
usually have some place for storing the stock as in the case of Daryaganj dealer. The Daryaganj
dealer‘s stock is stored in the place just behind the showroom. For this particular dealer the

51
transportation cost to bring the units from the warehouse to the showroom is saved and thus the
distribution cost is saved. But there are dealers like in Green Park, this dealer does not have their
ware house nearby to the showroom which means that this dealer has to keep their own
transportation system to bring the units from the warehouse to the showroom which is not cost
effective.

The sub-dealers usually hire the trucks to get the units delivered to their outlets. Sometimes the
dealer‘s truck is used by the sub-dealers to carry the units to their outlets on goof faith. If the
sub-dealer is the part of the same dealer then the transportation charge are less and if they hire it
then the cost is high for the sub-dealers.

What Does Customer Want?

The customers of Hero Hero, according to the Asst. Manager (Sales) are very particular about
the colors that Hero Motors Corpoffers in its wide variety of scooters. He said that the customers
are very much aware of their purchase. Gone are the days when the sales people could influence
the buyer to buy a particular product. Almost 90-93% of the customer, whoever comes to the
showroom. Usually comes after he/she had made a decision. So, the work of the sales person is
less. The rest 7-10% have some doubts with regard to the purchase of Hero Hero. It is here,
where the sales persons have to do some work in convincing the customers about the scooter.
The sales person in this regard convey the customers about the mileage, strokes and also the
parameters that the customers enquire.

When Do They Sell More?

Hero Motors Corpscooters peak season selling state from the month of April, just after the
budget and after the month of November the sells become slack. This is mainly due to the people
think that the budget can reduce the prices and moreover the budget usually brings in a
difference at Rs. 1000 - 1500. This is an important factor for increasing in sells. Usually in the
month of November the manufacturer comes with re-modeling and also new launches. People
wait till the month of April to see whether the prices are slashed or not.

How Is The Price Determined According To The Change?

Manufacturer, on the basis of the cost of production determines the price and the factors like tax
and others. Usually the sales tax on the two wheelers is 8% but in Hero Motors Corpit 4%. This

52
is because Delhi Government has found out that the pollution from Hero Motors Corpis very less
due to the catalytic converter which every model of Hero Motors Corphave. The government has
identified that by using the catalytic converter Hero Motors Corpis helping the environment
which is a social cause. Hero Motors CorpBikes not only have market in India, but also in
abroad. To maintain the differences in market of the different companies it takes the help of the
local manufacturers or the dealers outside for the distribution of their scooters smoothly.

How's The Relationship Between The Manufacturer And Dealers?

Improvement of sells is the first and foremost concern of the trading people. He said that they are
given the dealership to sell the products of Hero Motors Corpand the relationship is better when
the sells are more. On an average, sells around 5 to 6 scooters per day. The company
representatives keeps in contact with the dealers over telephone and keeps an pressuring the sales
managers of the dealers to improve the sells. The Dealer have 2 sales staff in the showroom and
7 more sales staff who moves around their sells territory on the call of the customers. The
representatives of the company visit the dealers weekly or fortnightly. As per Mr. Ayub, the
representatives of the company keeps on pressuring the dealers to increase the sales as in the case
of the aforesaid dealer. Earlier they use to sell around 5-6 scooters a day and now they are asked
to sell around 8-10 scooters on an average per day. The company keeps a very good relationship
with the dealers. As the launch of the new models the company calls on all the dealers for
meeting. In these meetings the company executives discusses the strategies that the company will
follow during the forthcoming months. The company accordingly asks the dealers to change their
strategies. Things like the target of sales sells for the forthcoming year, what should be the
attitude towards the market, the company's forecast and many such issues are discussed in these
meetings. The company also meets with the dealers during the time of new launch. Here the
company invites the dealers and also the sub dealers to train them about the new product that is
going to be launched. The company gives the dealers and sub-dealers mechanics a training of
around 15 to 20days.

The most important fact about the dealers of Hero Motors Corpis that they organize training
programmes for the local mechanics who doesn't have any affiliation from any brand two-
wheelers. These mechanics who are running their business in very small scale are invited to the
training camps of the dealers at the launch of new models. The dealers improve the relationship
at personal level with these local garage by giving them gifts.

53
Sales forecast

So depending on the market demand, the dealers place the order. The dealers make a sales
forecast taking into consideration the market demands the past years sales in the same month,
and also whether the present season is a peak slack season. Once, the sales forecast is made, then
the dealers place the orders depending on the forecast.

54
History

Hero Honda started its operations in 1984 as a joint venture between Hero Cycles of India

and Honda of Japan.[6][7] 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.[8]

"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 a 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 –

Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-

digit pace since inception. In 2001, the company became the largest two-wheeler manufacturing

company in India and globally.[3] It maintains global industry leadership to date.[3] The

technology in the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–2010)

has come from the Japanese counterpart Honda.[9]

Termination of Honda joint venture and the renaming

Hero Karizma R

By December 2010, the board of directors of the Hero Honda Group had decided to terminate the

joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero

Group would buy out the 26% stake of the Honda in JV Hero Honda.[10] Under the joint venture,

Hero Group could not export to international markets (except Nepal, Bangladesh and Sri Lanka)

55
and the termination would mean that Hero Group could now export. From the beginning, the

Hero Group relied on their Japanese partner Honda for technology.]

Honda exited the joint venture through a series of off-market transactions by giving the Munjal

family, which held a 26% stake in the company. Honda, wanting to focus only on its independent

fully owned two-wheeler subsidiary, Honda Motorcycle and Scooter India (HMSI), exited Hero

Honda at a discount and get over ₹6,400 crore (equivalent to ₹120 billion or US$1.5 billion in

2020) for its stake. The discount was between 30% and 50% to the current value of Honda's

stake as per the price of the stock after the market closed on 16 December 2010.[12]

The rising differences between the two partners gradually emerged as an irritant. Differences had

been brewing for a few years before the split over a variety of issues, ranging from Honda's

reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up

that expired in 2014) as well as Indian partner's uneasiness over high royalty payouts to the

Japanese company. Another major irritant for Honda was the refusal of Hero Honda, (mainly

managed by the Munjal family), to merge the company's spare parts business with Honda's new

fully owned subsidiary, HMSI.[12]

As per the arrangement, it was a two-leg deal: In the first part, the Munjal family, led by

Brijmohan Lal Munjal group, formed an overseas-incorporated special purpose vehicle (SPV) to

buy out Honda's entire stake, which was backed by bridge loans. This SPV was eventually

opened for private equity participation, and those included Warburg Pincus, Kohlberg Kravis

Roberts (KKR), TPG, Bain Capital and Carlyle Group.[13]

Formation of the new company

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp

Limited on 29 July 2011.[3] The new brand identity and logo of Hero MotoCorp were developed

56
by the British firm Wolff Olins.[14] The logo was revealed on 9 August 2011 in London, to

coincide with the third test match between England and India. Hero MotoCorp can now export

to Latin America, Africa and West Asia.[14] Hero is free to use any vendor for its components

instead of just Honda-approved vendors. On 21 April 2014, Hero MotoCorp announced its plan

on a ₹254 crore (equivalent to ₹345 crore or US$43 million in 2020) joint venture with

Bangladesh's Nitol-Niloy Group in the next five years to set up a manufacturing plant in

Bangladesh. The plant started production in 2017 under the name "HMCL Niloy Bangladesh

Limited". Hero MotoCorp owns 55% of the manufacturing company and the rest 45% is owned

by Niloy Motors (A subsidiary of Nitol-Niloy Group).[15] Hero also updated its 100cc engine

range in 2014 for 110cc bikes except for Hero Dawn.

Equity investments

In July 2013, HMC acquired 49.2%[16] shareholding in Erik Buell Racing, a motorcycle

sport company which produced street and racing motorcycles based in East Troy, Wisconsin,

United States. EBR filed for bankruptcy in 2015[17] and Hero MotoCorp proceed to acquire

certain assets for ₹18.2 crore (equivalent to ₹26 crore or US$3.3 million in 2020).,[18]

HMC invested ₹205 crore (US$30.5 million) as Series B round of funding in October 2016 and

gained a 32.31% stake in Ather Energy, a start-up company manufacturing electric scooters. It

invested a further ₹130 crore (US$19 million) in 2018.[19] HMC's share in Ather Energy has

grown up to 34.58% since 2016.[20][21]

Operations

Hero MotoCorp has five manufacturing facilities based

at Dharuhera, Gurugram, Neemrana, Haridwar and Halol . A new manufacturing facility is in the

process of being set up in Chittor in Andhra Pradesh. Spread over 600 acres, the company has

57
invested 1600 crores for setting up this greenfield facility. [22] These plants together have a

production capacity of over 76 lakh (7.6 million) 2-wheelers per year.[23] Hero MotoCorp has a

sales [24] and service network with over 6,000 dealerships and service points across India. It has

had a customer loyalty program since 2000, called the Hero Honda Passport Program which is

now known as Hero GoodLife Program.[25] As of 31 March 2020, the company has an annual

capacity of 9.1 million units in its eight manufacturing facilities. Apart from these manufacturing

facilities the company also has two R&D facilities, in Germany & Jaipur.[26]

It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa,

AG Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a

majority of its components.

As of March 2013, the company has sold over 7 crore (70 million) 2-wheelers since its inception

in 1984. It sold 60.7 lakh (6.07 million) 2-wheelers in 2012, out of which 55 lakh (5.5 million)

were motorcycles. Hero MotoCorp sells more two-wheelers than the second, third, and fourth-

placed two-wheeler companies put together.[3] Its most popular bike, the Hero Splendor sells

more than 10 lakh units per year.[28]

The company has a stated aim of achieving revenues of ₹64,000 crore (equivalent

to ₹780 billion or US$9.8 billion in 2020) and volumes of 10 lakh two-wheelers by 2016–17.

This is in conjunction with new countries where they can now market their two-wheelers

following the disengagement from Honda. Hero MotoCorp hopes to achieve 10% of its revenues

from international markets, and they expected to launch sales in Nigeria by end-2011 or early-

2012. Hero MotoCorp launched XPulse 200 adventure motorcycle in India on 1 May 2019, along

with the XPulse 200T touring motorcycle.

In 2019, Hero MotoCorp sold more than 78 lakh (7.8 million) units, which is the highest by any

two-wheeler company in the world. It registered its best-ever monthly performance by selling

58
7,69,000 units in the month of September 2018. In the April - June 2018 quarter (non-festive

time), the company registered its best-ever quarterly performance by selling more than 21 lakh

(2.1 million) units.[29]

In January 2021, Hero MotoCorp's production exceeded 100 million.[30] As of 2021, Hero is the

only Indian automobile brand to exceed 100 million in production.[30] In February 2021, Hero

MotoCorp sold 484,405 units with 0.9 percent growth.[31]

Hero MotoCorp has launched an online virtual showroom.[32]

Listings and shareholding

The equity shares of Hero MotoCorp are listed on the Bombay Stock Exchange,[33] and

the National Stock Exchange of India,[34] where it is a constituent of the NIFTY 50.[35]

As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero

MotoCorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares.[36] Foreign

Institutional Investors hold approx. 30% shares in the company.[36]

Shareholders (as on 31 March 2020) Shareholding[36]

Promoter Group 34.6%

Foreign Institutional Investors (FII) 34.3%

Non Resident Indians (NRIs) 0.4%

59
Indian Public 8.3%

Insurance companies 8.3%

Mutual Funds / UTI 8.2%

Bodies Corporate 1.40%

Financial Institutions / Banks 2.0%

Others 2.5%

Total 100%

Employees

As of 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%).

It also had approx. 13,800 temporary employees on that date. The company had an attrition rate

of 5.1% in the FY 2012–13.[3] The company spent ₹8,210 crore (equivalent to ₹130 billion or

US$1.6 billion in 2020) on employee benefits during the FY 2012–13.[3]

Awards and recognition

 The 2006 Forbes list of the 200 World's Most Respected Companies had Hero Honda

Motors ranked at No. 108.[37]

60
 The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in

the 7th position among the most trusted brands in India.[38]

Initiatives

The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as

Hero Honda Motors Ltd., that looks after:

 Raman Munjal Vidya Mandir (Educational Institution)

 BML Munjal University

During the financial year, the company spent ₹1.4 crores) on corporate social responsibility.

61
 ADVERTISEMENT
Advertisement, local events sponsorship and promotions and inviting a prominent personality for

the inaugural or first like delivery function would contribute effectively in generating a wider

local interest and attention.

Hero Hero‘s latest DKD commercial its two brand starring its Ambassador and India‘s heart

throbs, Hritik Roshan and priyanka chopra, truly reflects the multi fact roles that today‘s new

generation plays. The commercial reflecting the charisma and vibrancy of these two stars, takes

Desh Ki Dhadkan to dazzling new heights. It is young, colorful and vibrant and represent the

icons of contemporary times. And it will go a long way in strengthening the leadership status of

the product by the mile.

The new commercial is powerful film repeat with an impressive storyline. The effort to pack the

story, drama and impact in just 60 seconds was phenomenal challenge itself. The idea was born

itself. The idea was born out of the very essence of ―Hero and Stars‖. Keeping in mind would

cause on the drama and impact it would cause on the audience. It is a commercial packed with

action where today‘s heart throbs, Hritik roshan and Priyanka Chopra, are seen tackling new

roles. The story being in a field adjoining a hill with Hritik and priyanka on Hero Motors

Corpbikes and Pleasure respectively.

Both Sameer and Aditya win lifetime opportunity act with Hritik and Priyanka, the two star

heartthrobs of millions in India and all four will be seen in action in the new commercial DKD.

These are some of the Slogan for every product (Bike) and these are following:-

CD-100 : Fill it, shut it, Forget it.

CD100SS : Tough and Rugged.

62
Splendor : Designed to Excel.

Street Smart : License to enjoy.

Passion : When style matters, Bike born in studio not in factory.

CBZ : Motorcycling Unplugged.

CBZ-Xtreme : live xtreme

HUNK : because muscle mattres.

KARIZMA : Jet sets go.

Hero Hero : Leading the way.

Celebrity Endorsement: Hero Motors Corphas roped in film actor Hrithik Roshan, Priyanka

chopra, Mohammed Kaif, Harbhajan Singh, Zaheer Khan, Yuvraj Singh and Virender Sehwag as

its brand ambassadors. Announcing the formation of the Hero Motors Corp`Team Ambition', Mr.

Pawan Munjal, said, "Indian Cricket and Hero Motors Corphave both made the nation proud and

helped the world recognize India's potential. The `Team Ambition' has many similarities in

personality with Hero Hero, such as `splendor of performance', `passion to excel' and `ambition

to win". In their role as brand ambassadors, the `Team Ambition' would soon star in Hero Hero's

new commercials. As part of the association, Hero Motors Corpwill also find prominence on the

bats to be used by Yuvraj Singh and Zaheer Khan in the forthcoming cricket events.

Sourav Ganguly, who has been associated with Hero Motors Corpsince 2000, said, "Through

Team Ambition, we are looking forward to communicate more directly with over 6 million Hero

Motors Corpcustomers in India and the millions more added every year."

63
Says Mr. Anil Dua, Senior Vice-President, Marketing and Sales, Hero Hero, "Hero Motors

Corphas been promoting cricket for over a decade now. Starting with the memorable Hero Cup

in 1993, we have adequately benefited through the promotion of this national fervor.

Cricket is one sport which binds our entire nation and is, perhaps, the largest platform in the

world, enabling companies to communicate with millions of consumers in the shortest possible

time." The `Team Ambition' would also provide coaching and guidance to the budding

talent in the country and support cricket projects undertaken by Hero Motors Corpin

India and abroad, a company release said.

Hero Motors Corpwill keep up its promotional activities with emphasis on cricket and

entertainment. The company claims that its Desh Ki Dhadkan campaign featuring brand

ambassadors priyanka chopra and Hrithik Roshan has received a very good response and helped

build the company's image. Last year, the company spent around Rs 90 crore on advertising and

marketing.

MARKETING STRATEGY

Introduction of Marketing Strategy :- HERO CORP

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.

64
 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.

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.

65
 SALES PROMOTION

A fundamental concern of any customer during the purchase Of a double product is the quality

and provision of efficient service. After all queries on product quality, performance, features and

benefits have been satisfied, the customer invariably focuses on the service factor for the product

as the end objectives is to ensure trouble free operation. In this respect servicing acquires

paramount importance and Hero Hero‘s focus and emphasis on these key result area have been

instrumental in establishing its superiority and technological edge in the market. The host of

training programmes and relationship enchantment activity additionally backs the spates of

servicing camp, organized throughout the country. The active support of servicing and co-

operation rendered by the dealer in the form of logistics and infrastructure further aid in making

such programmes highly meaningful and valuable. They are doing free check up camps reinforce

customer trust. Service advisor‘s collecting information from a customer about his satisfaction

level after the servicing of their bike. For the promotion of products the Hero Motors Corpdealer

rally. Hero Motors Corpis organizing so many events in sports, cultural programmes, film -

festivals etc for the promotion of the product eg. Hero Motors CorpNKP salue Challenger

Cricket Cup brings new talent to the force, MALTA Junior Tennis Tournament, Hero Motors

Corpsocial‘s Commitment rehabilitating children affected by violence, operational,

Relief, donation for drought relief, Rota Trade Mela 2007, Road Show, Training programmers to

enhance quality of service, free back up camps reinforce customer‘s trust, ride safe programmes

held for Delhi Traffic Police, Mobile Revolution in servicing etc.

The powerful benefits of test rides, special promotions and communication drives to draw in the

initial customers, preparation of accurate customer information forms to create a customers

database, offer of finance facility and active steps to impart specific transiting at the dealer‘s

sales and services levels would be essential steps to achieving the brand and the company

66
objectives. Mr. Uppal also touched upon the servicing policy for passion and cautioned the

invitees to remain alert for substitution in Hero Motors Corpbrands among its customers. The

sales increase would have do be targeted from new customers and not its existing ones. The key

attitude that would constantly contribute towards sales would be total and passionate

commitment.

67
 PUBLICITY

For the purpose of publicity Hero Motors Corpis always organizing different events, etc. and

they are always inviting celebrities from film, sports, media, politics, etc. There are some of

event and parties are as follows:-

The Hero Motors Corpstardust millennium Honours and BFJA awards for Bengali films.

In a gesture that honors and salutes some of the finest talent in south Indian Cinema. Hero

Motors Corpalso security sponsored the 20th Cinema Express Awards.

The sponsorship of the women‘s World Cup in 1997 came next, then the ICC Cricket World Cup

2004.

Hero Hero, the largest two wheeler leader in Indian sponsored the 21st Cinema express Awards.

Marketing Convention 2006. They are priyanka Chopra, Miss World, Lara Dutta Miss Universe,

Diya Mirza Miss Asia Pacific, Sourav Ganguly Indian Cricket Captain, Daler Mehndi, Mr.

Harsha Bhogle the famous cricket commentator etc.

Dandiya programme at Kota and Banswara. In this Ms Sunita Rao, the popular singer entertains

at the festivals at the Dandiya Programme.

Thrill and the excitement at the Hero Motors CorpMaster Golf tournament. In this tournament

Kapil Dev, virendra sehwag, Pronoy Roy, Milkha Singh and so many celebrities were present.

Galaxy of stars add to the glitter Surat rang 2008. Pinaz Masani, the famous gazhal singer,

Kavita Krishnamurthy the famous play back Singer, Shibani Kashyap the pop singer are the

main highlight of this programme.

68
Hero Motors Corpsponsor‘s 26th Cinema Express Awards and the main celebrities of this

programme are evergreen Hero Devanand, Film Makers Hero Motors Corpsponsor Army

ordnance Corp Motor Cycle Expedition.

Joy of buying

At Hero Hero, we believe in providing the best of service, as reflected in our corporate ‗We

Care‘ philosophy.

An extension of this is the passport programme, popularly known as ‗suhana safar‘. This unique

programme aims to build long-term relationship with customers.

The Passport Programme membership benefits customers in a number of ways:

 For new customers, a change to win a Hero Motors CorpSplendor or Rs.50,000 in cash; and a

one –year accident incident insurance cover worth Rs. 1 lakh

 Special rewards and discount on accumulation points

 Invites to exclusive local events

 Attractive discount on spare parts

 And much more to come

REVIVING UP TO ENTICE BUYERS

With manufacturer offering attractive finance schemes, now is a good time to buy, says

dr.pritam Singh.

69
TWO- WHEELER sales have been increasing thanks to the continue thanks to the continuing

upward swing in motorcycle sales. To make sure that this happiness continues and that they grab

the largest share of the pie, manufacturer have been offering the customers finance schemes.

Hop across to the Hero Motors Corpdealership. The industry leader is offering finance option

from ICICI, Centurion Bank and Tata Finance All normally offer a 9.9-percent rate of interest on

two-wheeler finance, though there are other schemes too. Keeping in mind the ongoing festive

season, Hero Motors Corpis offering a Special 8.4-pecent rates of interest on two-wheeler

finance Another schemes is the low EMI schemes where one has to pay just 777 every month(for

48 month).but Hero Motors Corpoffers this for on 65-70 percent of the total amount against the

usual 90-percent.

Bajaj has tie-up with Centurion Bank, apart from its own two-wheeler finance. The prevailing

rates are 11.9 percent against a finance of 85-90 percent of the total value.

Kinetic also has its own finance arm besides its dealer its dealers can get your vehicle financed

through Tata Finance. The rates are 9.9 percent but there are many varying rates of interest

available. There is a heavily advertised schemes of 2.99 percent rate available on a limited

period.

TVS offers the same 9.9 percent rate of interest. yamaha has a tie-up with the Association apart

from the other option. Finance is easily available for up to 85-90 percent of the total value and

the rates are 9.9 percent.

The interest rates vary according to the period of loan and the amount.

Hero Motocorp has 35% of Hero‘s sales in the world and Hero Motor of Japan is proud to be

associated with Hero Hero. As a staunch supporter, with technology and brand support from the

global power house, Hero Motors, Japan, would immensely boost the business prospects in the

70
country despite the onslaught of serve competition in the market place. ‗ it is our avowed aim

that Hero Motors‘, scooters and Hero Hero‘s motorcycles would together corner 65% of the

market share of two wheeler in the country‘.

Primary among these were the National Customer Survey by IMRB with a record 25,000

interviews, making it the largest two-wheeler survey. This way followed up by the National

Customer satisfaction survey in September 2008. In keeping with ―Top Gear‖, the company also

reestablished customer finance tie-ups with Tata Finance. In the present Scenario, this is

available in 170 towns and to 232 dealers a leading to a current volume of around 15000 per

month. This represents as much as 40% of the total customers financing .

The dealers finance tie-ups with Citibank and Centurion Bank. The current sanctions to as many

as 189 dealers were worth Rs.110Crore, he revealed. There had also been no opportunistic ad

hoc price increases. The company also took positive steps to facilitate the dealer ―Authorized

representative service extension policy. The corporate commitment to ―we are‖ and the

company‘s emphasis on environment protection also resulted in opening the first effluent

treatment plant at a dealership. New service training centers were also established at Delhi and

Chennai.

While quarterly product reviews were conducted with the factories, a unique programme of joint

visits with quality department land Japanese staff was also introduced. On the spare parts front,

multiple increases in spare policy was also overhauled and new, innovative actions were taken

leading to a volume of over 6,000 bikes in the current year itself.

The company also associated itself actively with sponsorship of armed forced rallies, notable

among them being the Kargil Rally and the AOC Rally. While this built up its relationship with

premier customers, the initiatives taken on other priority fronts were equally effective.

71
Showroom standardization was effectively detailed. World event sponsorships also helped the

company to achieve global exposure for its brand.

The company‘s entry into the tournament events sponsorships was equally successful. Its

sponsorship of Hindi Cinema awards(Millennium Honors held in Mumbai in January 2008, was

followed up by sponsorship of Bengali cinema (BFJA Awards –Calcutta, August 2008) and then

South Indian Cinema (Cinema Express Awards- Chennai, November 2008).]

A laudable achievements was also the signing of the two top Leaders, veritable ‗Desh ki

Dhadkan‘ in the field of sports (Cricket), and entertainment (Hindi films), three years. Priyanka

chopra and Hritik Roshan the two stalwarts in their fields are also designed as brand

ambassadors for Hero Motors Corpfor a period of three years.

The national Launch of the Hero Motors Corppassport programme specifically targeted at

enhancing customers relationships, the implementation of the Hero worldwide safety riding

campaign at dealer Level, and support extended to dealer during the customers satisfactions

survey.

To streamile operations and sales administration, the company also introduced the service

excellence awards for SSP‘s decentralized the settlement of free service

coupons reimbursement, reorganized the Dharuhera Service Center as the National Training

Center, with latest technology to provide specialized advanced courses. Dealer level

implementation of the integrated dealership software package was also another significant

activity undertake.

The major success were the volume and revenue increase of by over two and a half times, and a

market share increase in motor cycles, from 52% to from 60% and in 2 wheeler, a doubling from

36% to 40%. For the current year ending 2009, the company would achieve a volume of over 2

72
million bikes under project ―OM‖ and revenue in excess of Rs.3000 crore. The spare parts

business itself was striving for revenues of Rs. 245 Crores. Service reporting at all authorized

outlets would exceed the ten million mark.

The market perception inevitably revolved around the admirable achievement of Hero Motors

Corpas the No:-1 two wheeler company in India. It revealed that the total customer base of the

company on a world wide basis had crossed the 4 million mark. The road envisaged in the light

of these facts was just an ambitious with the emphasis being to sustain a growth rate of 15% per

annum as well as be alert and responsive to new development particularly the resurgent and

aggressive competition with new players and bikes as in addition to the China / WTO impact

world trade organization.

Hero Hero‘s own marketing initiatives as well as the emerging potential of second hand

motorcycle business. Key aspects in accessories business, social commitment and socially

relevant programmers, and communications drives were also pointed out.

Specific brand building and customers relationship exercise like the passport programme,

satisfaction survey, safety riding, campaign, service extension assistance the various multi-

levels training and development programmes, seminars and workshops, CBZ club, product

quality reviews and field quality visits were all essential and

indispensable ingredients to achieves the required results. And for this the most vital input was

inevitably the passion from one and all.

DEALER

The advantage of efficiency to keep prices reasonable and increase customers Loyalty Is a vital

components in the company‘s priorities. With 405 dealers, 178 SSPs and 15 stockiest, the

73
company‘s strength in terms of dealership and service points for the various brands in an

achievement that was laudable by all counts.

The dealers to take the company to newer heights, and fulfill the declared version of the

company that expectation were essential in any relationship building process and for this

constants evaluation and review of the essential internal components was impressive on the part

of dealers.

Emphasizing on the urgent need to begin the marketing initiatives on a war footing with

immediate action. This was one mantra that was imperative in today‘s market environments. And

the second mantra is to stress the customers. It was thus vital to continue to strengthen the

existing customers bonds and relationship and enhance the brand loyalty factor. Importance of

small gestures like services due letter cannot be overemphasized. The effort at all times must to

be provided the customers with total satisfactions on servicing.

With 90 dealers had already attended the training programmes, the remaining would also be able

to derive the benefits to training through a phased training programme throughout the year. The

training would also be cross board, covering dealers, dealer associates, service technicians, and

senior managers.

The chairmen also had praise for all the dealers acknowledging their hard work and continuous

efforts he said, ―you are the real front end of the company with the customers and you all deserve

compliments. Some of you enjoy a relationship of over 15 years with the company and same

dealers have joined recently.

Hero Motors Corpdealers have continued to demonstrate their spirited enthusiasm in

aggressively promoting the Hero Motors Corpproduct range.

74
Though innovative initiatives the efforts at utilizing local events, function and programmes to

maximize the impact of the companies commitment have been highly beneficial in all fronts

while local and regional interest in Hero Motors Corpbrands in generated to high Level, the

awareness and the subsequent appreciation for the company‘s commitment to customer‘s

satisfaction through outstanding standards, state of the art technology and the brand quality that

is awesome in features as it in benefits is widely and skillfully generated. The strategic display of

products also further enhances the approval accorded by the enthusiastic on lookers and visitors

at local shows.

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Sales and figure for the first six months of fiscal 2012-13,shows a mixed trend. In order words,
some segment are witness growth and some decline.

In the two –wheeler segment, motorcycles continue to show robust growth. During the period
under review sales of motorcycles rose 43.03 percent to 37,33,142 numbers. All the major
players recorded growth. Market leader Hero Motors Corpsales increased 30.05 percent to
819.167 numbers. Interestingly, third seeded TVS saw its sales grow 98.93 per cent to the period
under review, production of the century increased 44.91 percent to 1,876,015 numbers.

76
 OBJECTIVES

 To study the marketing mix of Hero Company

 To study its life cycle initial stage, growth and maturity.

 To study various promotional strategies and know about the current strategies keeping in
mind the cut throat competition and arrival of Hero Company in India.

 To focus on comparative study of different products of Hero company

 Different range of Products; their success and failure.

 To study overall financial performance of Hero Company.

77
 SCOPE OF THE PROJECT

 The project involves, the study of the segmentation, targeting & positioning of Hero
Motocorp two-wheeler in the market. And what people think about it.

 Hero Corp. It includes carrying out a survey among customers & the industry people as well
as the retailers. It also involves the devising of repositioning of the existing brand by some
modifications; advertisement should be so made that the targeted segment comes to know
what the bike is. How is it better from others. So, that in near future this bike becomes a
grand success. Information regarding the market share, cost factors, the marketing and
promotional strategies etc was collected from primary data sources.

78
 RESEARCH METHODOLOGY

The project involves the study of four- strokes bike segment in two wheeler industry sector,
which involved:

1. Market survey/ Researches

2. Meeting the retailers and the customers

3. Desk Research

RESEARCH APPROACH

I did two types of surveys (Data source):

A. PRIMARY SURVEY

1. P/S T1 was done visiting Hero Motors CorpMotors Ltd. Corporate office, Basant Lok,
Vasant Vihar regarding segmentation, targeting and positioning of their brands in the two
wheeler sector. A lot of desk research was also done.

2. P/S T2 conducted by visiting Hero Motors CorpMotors Ltd. And retailers of Hero Motors
Corp{Khanna Automobiles & ESS AAY Agencies , auto needs(INDIA) Pvt.Ltd).Basic
objective was to know their product price, distribution channel, their customers , their
process of segmentation ,targeting and positioning in the problems faced by the customers
and lastly their views about the model.

3. P/S T3 conducted by taking views of the customers using this model of Hero Motors Corpi.e.
Hero Motors Corpsplendor. Their view points About the model, their grievances/
complaints about it. Last but not the least their views about modification required in it.

79
RESEARCH INSTRUMENT

The research instrument used was a structural questionnaire. It was formulated after detailed
discussion.

SAMPLING PLAN

a) Sampling Unit: The sampling unit constituted the people in

the middle income going in for bikes.

b) Sampling Size: the sample size consists of 45 customers, out of which 5 refused to fill the
questionnaire and 5 forms were found incomplete.

c) Sampling Procedure : Convenience sampling.

B) SECONDARY SURVEY

1) S/S T1 was conducted gaining information from different magazines newspaper. And on
company from their annual reports and balance sheets and their website.

2) Promotional strategies used at present like sponsoring programme and various event which
have no direct bearing on the product. However the main focus is to influence youth- the
largest group. e.g. Hero Motors CorpSa Re Ga Ma Pa.

80
 REVIEW OF LITERATURE

This chapter presents an exhaustive literature review of quality dimension in marketing

strategies. The discussion in this chapter is centered on how more the quality dimension in
marketing strategies understood as part of this research. Furthermore, this chapter explores the
topic specific to the industries viz. Two Wheeler Industry.

The term marketing strategies began to find its way into the academic marketing literature only
in the late 1980‘s. The first use of the term is attributable to Professor Leonard Berry of Texas
A& M University in an American Marketing Association presentation in 1983. The literature on
marketing strategies in the early 1990‘s for the most part did not approach the subject from the
consumer‘s perspective. There were of course notable exceptions. In 1990, John Czepiel,
Professor of Marketing at the New York University observed that a marketplace based marketing
strategies is ―the mutual recognition of some special status between exchange partners. (Czepiel,
1990). Susan Fournier refers to what marketing is supposed to be ―the epitome of customer
orientation‖ (Fournier, 1999).

The literature in services marketing, in recognition of such facts, defines marketing as the
attraction, maintenance and enhancement of marketing strategies (Berry, 1997), or attracting,
developing and retaining marketing strategies (Berry and Parasuraman, 1991).

Traditional measures of service marketing strategies

The primary outcome measures of marketing strategies, satisfaction and quality, have an
extensive literature in both the product and service fields yet, particularly in the services
literature, there are still some lack of conceptual distinction between the two constructs. Since it
is reasonable to assume a high level of correlation between the two constructs, most studies
adopt one or the other measure, often without any discussion of the justification for the choice.

81
 SWOT ANALYSIS
Strengths:

 Technological support from Hero Motors, Japan.

 The company has a deeply penetrated dealer network.

 The company provides good after sales service through its well-established dealer network.

 The company enjoys a huge market share and well established brands like Splendor+,
Passion+, CBZ-xtreme etc.

Weaknesses:

 Hero Motors Corpdepends on Hero for new products and this is a big weakness.

 The company doesn't have a product catering to Rs. 25,000 - Rs. 35,000 segment, and the
company might suffer on account of this as the imported motorcycles and foreign players'
motorcycles are expected to cater to this particular segment of the market. This can result in
fall in the market share of the company.

 The company imports about 31% of its spare requirements. This makes the company
vulnerable to the import policies of the government. It also exposes them to the exchange rate
risk.

Opportunities:

 The motorcycle segment is growing at the rate of 33%, which provides a great opportunity
for the company to cash on.

 Also it is experiencing a shift in the customer preference for 4-stroke mobikes (automatic
scooters). This again provides an excellent opportunity to Hero Motors Corpto leverage its
market share and market leadership for sustained profitability.

82
Threats:

 The technical collaboration with Hero is valid only for a period and this is a serious threat as
they have been dependant on Hero for technology. Also Hero has set up its 100% subsidiary
in India which has start producing motorcycles from 2008. This has further increased the
competition.

 The company has plans to foray into the scooter segment, which can also be a major threat
for the future prospects of the company. The reason being that the consumers are shifting
from scooters to motorcycles and at this hour moving from motorcycles to scooters doesn't
sound logical.

Motorcycles form the major chunk of the sales revenue of Hero Hero. A small proportion of the
revenue comes from the sales of spares.

83
FINDINGS & DATA INTERPRETATION

1) How did you come to know about the Hero Bikes?

Newspaper 44%
Hoarding 6%
Paper Insert 11%
Word of Month 39%

INTERPRETATION

It can be assumed from the above graph that among 111 respondents 44% say
Newspaper, 06% say Hoarding, 11% say by Paper insert, 39% people say that they
come to know about Hero Bikes by Word of Mouth

84
 2) What do you see when you purchase a bike ?

Price 24%
Style 8%
Colour 13%
Fuel efficiency 30%
Capacity 15%
All of the above 10%

30%

25%
price
20% style
color
15%
fuel efficency
10% capacity
all of the above
5%

0%

INTERPRETATION
From the above diagram it can be seen that 24% of respondent price , 8%style,
13% color, 30% fuel efficency15% capacity 10% all of the above

85
 3-Do you get the Bikes of your choice?

Always 50%
Almost Always 30%
Some Time 20%

INTERPRETATION

The above diagram exhibits that 50% of the respondent gets their choice of
product, 30%people get almost always but 20% respondent is getting their choice
of product sometimes.

86
4. DO you think that the Bikes of Hero have a good quality?

Yes 95%

No 5%

INTERPRETATION

This diagram shows that 95% of consumer are satisfied by hero bikes are of good
quality and 5% are not.

87
5 - How do you feel when you ride Hero Bikes?

Excellent 34%
Vey Good 35%
Good 22%
Average 9%

INTERPRETATION

The above diagram exhibits that 34% Feel Excellent while riding bike of Hero,
35% feels very good, 22% Good & 9%people feel average in riding

88
 6- What do you look for when you are purchasing any Bikes?

Price 3%

Quality 10%
Both 87%

INTERPRETATION

It can be assumed from the above pie chart that among 111respondent 3% say they
give preference to price 10% respondent say they go after the quality and rest 87%
go for both quality and price.

89
7- Why do you prefer Hero Bikes than any other Bikes?

Convenience
Ambience
Good Service
All of the above

INTERPRETATION

It can be assumed to above diagram that among 111 respondent 53% comes here
because of convenience 6% just because of good environment, 29% people come
because of good service and 12% come for all the qualities which is given above.

90
8- Are you satisfied with the prices of Hero Bikes ?

Yes 91%

No 9%

INTERPRETATION

The diagram shows that 91% of respondents are satisfied with the
prices of Hero Bikes which is given by company.
.

91
9.Are you satisfied with the performance of Hero Bikes?

Yes 95%

No 5%

INTERPRETATION

It can be assumed to above diagram that among 111 respondent 95% are satisfied
with the prices of the Hero Bikes.

92
10- Which factor influence you most while taking a decision for Buying a Bike
(Rank in preference)?

Price 27%
Quality 64%
Customer Service 9%

INTERPRETATION

It can be assumed from the above bar diagram that among 27% respondents price,
64% respondents quality and 09% respondents customer service.

93
11-Will you recommended Hero Bikes to your friends/ family to buy?

Yes 84%

No 14%

INTERPRETATION

It can be assumed from the above bar diagram that among 111 respondent 86%
will recommend Hero bikes to their friends

94
12. Do you know the benefits and schemes which are given by company along
with Bikes?

1.Yes 66%
2.No 34%

Slice 1

34%

INTERPRETATION
It can be assumed that 66% know about schemes given by company and 34%
don‘t know about schemes.

95
13-What are your suggestions for manufacturing manager to improve its
working? Slice 1

34%

…………………………………………………………….

…………………………………………………………….

INTERPRETATION

Better relationship with customer, Increase work efficiency, Avoid congestion,

Decrease noise, Improve price policy, , Decrease cost, make product eco- friendly.

96
 CONCLUSION

From the customers survey and desk research we conclude that:

"We are confident that we will continue getting technology from Hero." Hero, for its part, has
also made similar statements. However, industry analysts do have doubts. Says an industry
analyst, "Hero's track record in India does lead to some apprehensions. An analysis of Hero's
past tie-ups in India would prove so. For instance, Hero exited the joint venture with Kinetic by
selling its stake to the promoters and launched a replica of Kinetic Hero's ungeared scooter; its
60:40 ventures with SIEL for cars progressively became a 99:1 partnership and its venture with
the Shriram group for gensets ended when it bought out Shriram's stake. This does throw up
some questions with regards to the path ahead for Hero Hero." These examples prove that Hero
has always wanted to have its own entity, says another analyst.

Most of the customers of Hero Motors Corpbelong to congested areas. They mostly belong to
middle class and are mostly officials/ executives. Thus, we conclude client has targeted the right
segment.

From the findings we conclude that a customers while purchasing a bike, customers takes into
consideration mainly fuel efficiency, good looks, low maintenance cost and reliability.

The main competitors of Hero Motors Corpare Bajaj Auto, Yamaha and TVS.

The consumer preference basically depends upon wider network and better services.

Customers are influenced more to buy a product by advertisements rather than dealer friend‘s or
family recommendations.

97
 LIMITATIONS

1. Due to lack of time I was not able to cover many customers.

2. As I reside in Meerut, so customers of Meerut were taken into account.

3. Answers given by the customers may be biased one.

4. Research work was confined to Meerut.

5. Some time Co-operation from respondents was missing.

98
 SUGGESTIONS

After the complete analysis of entire assignment we put forward a set of recommendations which
are a follows:

 Since the client has targeted the right segments, but the reason for the low sales of Hero.

 Cbz is high price. Moreover the client has positioned the bike as ―city ride made easy‖ fuel –
efficient bike as a result of which if comes in direct competition with.

 In order to increase the market share, customer‘s promotional activities should be encouraged
through advertisements to attract the male & female segment.

 Hero Hero, if it starts functioning independently, has to innovate and develop their own
technology to support their growth aspirations.

 The dissatisfied customers should be dealt with appropriately should be satisfied so that they
do not break the relationship with company.

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 BIBLIOGRAPHY

BOOKS:

 Name of the book :- Marketing research

Author : - Dr. C.B.Mamoria

 Name of the book :- Marketing research

Author : - Mr. Kothari.

MAGAZINES, JOURNALS AND NEWSPAPERS:

 Journals published by Hero Honda, Annual Report since 2018

 Journals published by hero corp , since 2017

INTERNET:

 www.herohonda.com
 www.google.com
 www.scribd.com
 www.slideshare.com

100
 QUESTIONNAIRE
CONSUMER SURVEY
NAME _ ---------------------------- ------------------------------------

Age_ --- ---------------

Address_ ----------------------------------------------------------------------------------

Gender_ Male [ ] Female [ ]

1-How did you come to know about the Hero Bikes?

a)Newspaper
b)Hoarding
c)Paper Insert
d)Word of Month

2-What do you see when you purchase a bike ?

a)price
b)style
c)color
d)fuel efficiency
e)capacity

3-Do you get the Bikes of your choice?

a)Always
b)Almost Always
c)sometimes

4. DO you think that the Bikes of Hero have a good quality?

a)yes
b)No

5 - How do you feel when you ride Hero Bikes?

a)excellent
b)very good
c)Good
d)Average

6- What do you look for when you are purchasing any Bikes?

a)price

101
b)quality
c)both

7- Why do you prefer Hero Bikes than any other Bikes?

a)convenience
b)Ambience
c)Good service
d)All of the above

8- Are you satisfied with the prices of Hero Bikes ?

a)Yes
b)No

9.Are you satisfied with the performance of Hero Bikes?

a)Yes
b)N0

10- Which factor influence you most while taking a decision for Buying a Bike
(Rank in preference)?
a)Price
b)Quality
c)customer service

11-Will you recommended Hero Bikes to your friends/ family to buy?

a)yes
b)No
12. Do you know the benefits and schemes which are given by company along
with Bikes?

a)Yes
b)No

13-What are your suggestions for production manager to improve its

working?

102