Navnirman Institute of Management

An Assignment Project On

³Hero Motocorp Ltd´
Submitted By, ³Bikrant rout´ Roll No: 155
In The Partial Fulfillment of the Requirement For the Assignment Advance Marketing Management in Semester VI in B.B.A. Programme Submitted To, Navnirman Institute of Management; (NIM-B.B.A. collage), Bharthana, Surat. Affiliated To VNSGU,Surat Academic Year 2012-2013

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Navnirman Institute of Management

Introduction of Hero MotoCorp Ltd

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers, based in India. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till date. Hero MotoCorp two wheelers are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar, in the hill state of Uttrakhand. In the 1980's the Company pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006. Its plants use world class equipment and processes and have become a benchmark in leanness and productivity.

Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to innovate and develop cutting edge products and processes.Hero MotoCorp offers wide range of two wheeler products that include motorcycles and scooters, and has set the industry standards across all the market segments.

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Navnirman Institute of Management The Company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Company's new identity "Hero MotoCorp Ltd. These comprise a mix of authorized dealerships. The new Hero is rising and is poised to shine on the global arena.level activation." is truly reflective of its vision to strengthen focus on mobility and technology and creating global footprint. service & spare parts outlets. and dealer-appointed outlets across the country. Page 3 . entertainment and ground. Hero MotoCorp's extensive sales and service network now spans over to 5000 customer touch points. Building and promoting new brand identity will be central to all its initiatives. utilizing every opportunity and leveraging its strong presence across sports.

Strategy Hero MotoCorp's key strategies are to build a robust product portfolio across categories. styling and quality so that it converts its customers into its brand advocates. explore growth opportunities globally. Hero MotoCorp Ltd. reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena.the vision of a mobile and an empowered India. continuously improve its operational efficiency. The company will provide an engaging environment for its people to perform to their true potential. continue to invest in brand building activities and ensure customer and shareholder delight. aggressively expand its reach to customers. Vision The story of Hero Honda began with a simple vision . powered by its bikes. Page 4 . company's new identity.Navnirman Institute of Management Mission Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility. setting benchmarks in technology.. It will continue its focus on value creation and enduring relationships with its partners.

Page 5 . Place: Hero Moto corp¶s service centers and showrooms are available in all parts of the any city so that the consumers as can easily go to nearest service center and showrooms. The use the sentence likes ³Hero Honda das eke dhedkan´. Due to this strategy the sales of hero bikes are also increase. This company bits its competitor with related to price.Navnirman Institute of Management Relevancy with current market strategy Product: The main strategy of this company I product is to provide a stylish. durable bikes which can easily fit to Indian peoples and easily can able to run in particular Indian road. The company also has big names in brand promoters. Price: Hero Moto corp is a company that provides the new technology product in Indian market in very less price. There are many products like splendor. Promotion:The promotion of Hero Moto corp is very unique in past when the Hero and Honda companies we partners. passion that it¶s were very less comparing to that segments bikes in market.

The target population was mainly adventures person and who have little high income. age. style. This bike fall in150cc bike segment. Page 6 .Navnirman Institute of Management Target markets of the company The target people a mainly all sector of the people and there is a verities of products in the product mix of company. some of the product a as bellow. The sectors and segments are divided among the income people. as this bike is around 75000 I also can be good for the rich individual in rural area. speed etc. Impulse:- this product is lunched recently for those who like sporty and adventures bike.

This bike falls under 100cc bike segment¶s this bike for low income people so its price was also less which is only 38000 rupees. Page 7 . By this punch line we can identify that this bike may be for common people who were average income.Navnirman Institute of Management CD Dawn:- This bike have a unique punch line in advertisement that ³CD Dawn Public ka apna Transport´.

But it also falls under 100cc bike segment. The target costumer may be the common man who have medium range income it is also a stylize bike in comparison to CD Dawn. Its price is around 45000 rupees.Navnirman Institute of Management CD Deluxe:- This bike as also have a punch line that ´CD Deluxe Naye India ke deluxe bike´. Page 8 .

By this line we can clearly identify that this scooter is mainly for ladies. It also falls under 100cc scooter segments scooter which has price of 45000 rupees. This scooter has the punch line that ³Why should boys have all the fun´. Page 9 .Navnirman Institute of Management Pleasure:- This is the only scooter bike in Hero Motocorp company.

Page 10 .its price is also around 48000 rupees. This bike is also for normal people who have medium rang income .Navnirman Institute of Management Splendor+:- This bike has won many awards in Indian market as very successful bike which gave a lot of profit to the company. This bike has also falls under 100cc bike segments.

this bike as also a punch line that´Ab srif style he style bole ga´.Navnirman Institute of Management Passionpro:- This bike is also successful bike in the Indian market .it comes under low income segment people . Page 11 . This suggest that this bike is very styles and its target market may be for youth and students .it also falls under 100cc bike segments which had a price of 54000 rupees.

Page 12 . But it is a high segment income people as its price is around 69000 rupees .Navnirman Institute of Management Glamour Pro F1:- This bike has a new technology of program fuel injection .it engine is also good and falls under 125cc segments bike. This bike is also is for stylish people and students.This bike is made of new technology for which any other bike does not have this technology in this segment.

This bike is also falls under 150cc bike segment.Navnirman Institute of Management Achiever:- This bike is a new product for the company. Its price is also around 60000b rupees. Page 13 . This bike is also have the punch line that ³solid like you´. so we can identify that this bike may be for stronger people. The target person may me all costumers who have medium range income.

Navnirman Institute of Management CBZ extreme:- This bike is very stylize look .but the price is high which is around 73000 rupees.The target costumer may be the stylish people have the high income . is bike is also falls under 150cc bike segments .this bike is also have the punch line ³live off the edge´. This bike is mainly used by the youth and students. Page 14 .

As it is for high segment people its price is around 73000 rupees and it also falls under 150cc bike segments.Navnirman Institute of Management Hunk:- This bike is also very styles and is very muscular bike . Page 15 .the target market may be the higher income segment customer as well as the youth.

This bike falls under 225cc bike segments. This bike is for the customers who have high income as well like the speed riding of bike. Page 16 .Navnirman Institute of Management Karizma ZMR :- This bike is very stylize and has very sporty look.tis bike is mainly used my youth and students. As it is for high income people its price is also high which around 105000 rupees.

This project involves a selection people of some people within the set-up of R&D at Hero MotoCorp. as it displayed at Auto Show its purposes and vision for the future. Since the initiation on a solo journey last year. MotoCorp is quickly increasing its research and development (R&D) proficiencies. Page 17 . with some other international consultants.Navnirman Institute of Management Leap Hybrid scooter:This scooter is lunched in 2012 Delhi expo and not been in the market.

The main strategy is to expand the network and give services to every part of the country. overall production capacity went up and the Company was able to ramp up from 4. production capacity has been augmented by over 2 million units. which helped boost their integration with the organization¶s supply chain. By the end of the year. important enhancements were made in the dealers¶ portal.4 million units. process efficiency and accurate and prompt decision making. As part of the project. Crossing this milestone was no mean achievement. A revival in agriculture.6 million units to 5. . By the end of the financial year. India¶s two wheeler industry continues to benefit from an expanding economy. Increasing network and manufacturing Excellency:Over the last five years. Over the last three years. more than 2000 customer touch points have been added to the Company¶s network. Page 18 . IT initiatives were embarked upon at multiple levels. considering the scope and magnitude of the project. the Company had successfully deployed the system at more than 530 dealers outlets. growing job opportunities in the service sector and expanding urbanization ensured a healthy demand for two wheelers. Information system:Hero MotoCorp¶s robust technology heritage was strengthened further during the year under review.Navnirman Institute of Management Five different strategy of the company. There was a strong focus on supply chain integration.

an advanced incinerator (for paint and sludge). Since inception.Navnirman Institute of Management People approach:The emphasis has always been on buildinga talent pipeline taking into account a mediumto-long-term perspective. Green management:The Company¶s environmental consciousness ± embedded in the credo ³we care¶¶ ± continued to be a key area of focus. and rain water harvesting sites (reference sites).The Company has tried to attract the right talent. The Company augmented its young talent by inducting a fresh batch of management trainees and GETs like every year. The ET programme has been reengineered. Our five-month long induction is based on a µJob Function Criteria¶ that recognise strengths and facilitate appropriate job alignment. hazardous and non-hazardous waste). solid landfill (for the disposal of solid. Besides. On-the-Job Project (OTJP) and Job Simulation were introduced for the first time. to widen the incumbent¶s learning horizon. Page 19 . Green Roof (at Hardwar plant) and others. effluent and sewage treatment plants. build capabilities and facilitate career development to drive organisational objectives. The Green Vendor Development Programmers has struck deep roots since its commencement in 2007. These collaborative programmers call for partner companies to demonstrate their commitment towards improved environmental performance and striving for continual improvement. the Company has invested substantially in clean and green technologies: a fluidized bed (for paint hanger burning).

The company and made very big endowments there is very big list of band promoters like Shahrukh Khan. Priynka Chopda and may big names are included in the list.Navnirman Institute of Management Advertisement strategy The company had the strategy to provide their bikes in low range price witch to compotators with same function which compotators has. Page 20 . Ranbir Kapoor. Akon.

and incomes. affluence. Muslims. cultural factors. They differ in their religious beliefs. Buddhists. and Sikhs. social patterns. Page 21 .Navnirman Institute of Management New Rural Marketing Strategy of Hero Motocorp Ltd Introduction Marketing principles are the same for rural or urban markets. linguistic factors. and 4. customs. awareness. literacy level. However. 3. The literacy level in rural India is estimated to be about 30 per cent. over exposure to the media and the free modern city environment is influencing their lifestyles Four factors determine the demand in rural India: 1. the increasing levels of education. attitude. Rural consumers are believed to be somewhat more conservative and traditionbound than their urban counterpart. The major religious groups in rural India include Hindus. 2. access. Christians. traditions. Rural population is culturally heterogeneous. It is the approach to applying these principles that requires adjustments according to specific opportunities and constraints resulting from a host of rural conditions in India that a marketer faces.

occupation.Navnirman Institute of Management In general. the following factors need to be taken care of:  Segmentation and targeting  Product planning  Pricing  Distribution  Promotion The following variables seem to be relevant to most of the rural areas in India and can be considered in determining the different market segments:        Geographic location Population density Gender. age. income levels Socio-cultural considerations Language and literacy level Lifestyle. benefits sought Nearness to an urban area/industrial town Page 22 .

and then select products from the available ones. Page 23 . For example the splendor which is success full in urban area after determine the need for rural people they make the advertising in rural area. Price:The rural consumer in general. The marketer will have to examine ways to make the product affordable to a large number of consumers in the rural markets. is price sensitive. It is advisable for companies to first determine what consumers in the rural markets need and want.Navnirman Institute of Management Product:Companies have to consider whether the existing successful products available in the urban areas can be marketed in the rural markets without any modification. or more appropriately. value conscious. For example when the company has introduced the bike called splendor they put the price less in comparison to urban are so that a middle class people can easily afford it . after that it become great success full bike in urban area also.

movie heroes. and product recall. Promotion:Rural marketing poses several problems with regard to various methods available to the marketers for communicating effectively in different areas of the country. For the result splendor is more purchased in rural area then urban area. For example the company has made many advertisements in rural area and hoardings and many endowments are also done in rural are. For example when the splendor is lunched in rural area it is available in all showrooms in rural area. Those of us who hail from rural areas and others who have had the opportunity of visiting rural areas in different parts of the country can very well appreciate the challenges marketers face. and local folklore heroes etc. Page 24 .Navnirman Institute of Management Distribution:Distribution is critical to penetrate rural markets for success. The second set of difficulties relates to the organizing of an effective and efficient distribution channel. can have special significance in influencing consumer attitudes. The first constraint relates to aspects of physical distribution. Using symbolic association of products or events with deities. awareness. The service centers are also established in many rural areas for the success of the bike.

The main strategy of the company to this good would be to make aggressive advisement to aware to people. Page 25 . As it is new product so it is in the introduction stage of life cycle. For this product company has to make important decision is to make changes in the product and relaunch it or to drop the product from their product line. Increase the sales my marketing strategy. CD Dawn:As CD Dawn is very old product to the company and it is in the decline stage of product cycle.Navnirman Institute of Management Life cycle of Products Impulse:Impulse is a new product to the market which is lunched recently when Hero and Honda were splinted to different company.

When the passion pro was in the decline stage the company had made changes in their features and relunched it. The product is in decline stage so the company has to make crucial decision regarding that product. Hunk:This product has unique feature and also good product.the company has to hold on the product for that the company has to cut down the price of that product as the price is high comparing to other 150cc bikes. This product is now at the maturity stage in the production the company has to cut down the price which is around 73000 rupees. Page 26 .In compitation to Hunk many product is very good.Navnirman Institute of Management Passion pro:Passion pro is changed product for the existing product of passion.

Company had made the good decision for improving features of existing product and makes it a totally new product. The product is at growth stage in product life cycle. Page 27 . The company has to improve their performance and had to increase the sales of the product.Navnirman Institute of Management Karizma ZMR:This product is the new product which is been relunched after making the existing product Karizma.

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