This action might not be possible to undo. Are you sure you want to continue?
Hero Honda Motors Limited, based in Delhi, is the world's Largest manufacturer of motorcycles . A joint venture that began in 1984 between the Hero Group of India and Honda of Japan. Hero Honda's Splendor is the world's largest selling motorcycle. Total unit sold in year 2010-11 is over 4.5 million.
Hero Moto corp Ltd
BSE: 500182 NSE: HEROMOTOCO BSE SENSEX Constituent Automotive 19 January 1984 (Gurgaon) Brijmohan Lall Munjal New Delhi, India Brijmohan Lall Munjal (Chairman) Pawan Munjal (MD & CEO)
Industry Founded Founder(s) Headquarters Key people
Revenue Operating income Net income Parent
Motorcycles, scooters, three-wheeler vehicles and spare parts
23,579.03 crore (US$4.27 billion)
2,597.07 crore (US$470.07 million)(FY 20102011) 2,378.13 crore (US$430.44 million)(2011) Hero Cycles
Hero Honda is world’s third largest 2-wheeler maker. “THE LICENSE RAJ” : Customers in India were forced to wait 12 years to buy a scooter from Bajaj. In the mid-1980s, Foreign companies permitted to enter the Indian market through minority joint ventures. Four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Motor Company (Kinetic Honda) The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.
MARKET SHARE OF MOTORCYCLES IN INDIAN MARKET Hero Honda Bajaj TVS Yamaha LML Kinetic Royal Enfield Majetic .
Passion+ .MODELS(product line) Hero Honda Ambition 133. Passion Pro Hero Honda Karizma Hero Honda Hunk Hero Honda Pleasure Hero Honda Glamour .CD SS. Super Splendor. CD Dawn Hero Honda Splendor .135 Hero Honda CD 100. CBZ Xtreme Hero Honda Passion . Splendor NXG Hero Honda CBZ . Splendor+ .
2.STRATEGIES (A) BUSINESS STRATEGY The company has formed its business units based on the following parameters: 1.This is the most important parameter used by Hero Honda to create its SBUs as this depends on the engineering and assembly processes.) Common raw materials requirements: Products that are similar in their design catering to similar segments share the raw materials and hence need to be clubbed in the same SBU while those with different requirements need a different strategy. .) Common manufacturing processes: .
.Concentric 2 -Stability 3 -Retrenchment (C) FUNCTIONAL STRATEGY 1-R & D 2. 1 -Competitive Strategy 2 -Co-operative Strategy (B) CORPORATE STRATEGY 1-growth (Hero honda adopt Growth Strategy) -Conglomorate .CONT.Human research strategy 3-Marketing Strategy .
Finally. Splendor and the Passion models are aimed at the first time users of the urban segment. Splendor NXG and Glamour are aimed at the executive or deluxe segment who want a sporty bike yet an affordable one.” . The premium motorbike segment is catered to by the stylish products of Hero Honda Hunk. The CD Deluxe. the scooter segment is represented by the Hero Honda Pleasure. “ Hero Honda has a strong product portfolio. Karizma. CBZ Extreme and Achiever. It has the CD Dawn and the CD 100 positioned for the entry-level bike segment primarily aimed at the rural market.PRODUCT PORTFOLIO OF HERO HONDA Hero Honda has an extremely versatile product portfolio catering to the various segments of the two-wheeler industry. Splendor Plus. The Passion Plus.
are units with low market share in a mature. DOGS. generating barely enough cash to maintain the business's market share. slow-growing industry. STARS are units with a high market share in a fast-growing industry. . Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units CASH COW are units with high market share in a slow-growing industry. QUESTION MARK -These units typically "break even". These units typically generate cash in excess of the amount of cash needed to maintain the business. or more charitably called pets.
BCG MATRIX FOR HERO HONDA MOTOR LIMITED .
PORTERS FIVE FORCE MODEL THREAT OF NEW ENTRANTS Mahindra & Mahindra (M&M). BARGAINING POWER OF BUYER Buyers in automobile market have more choice to choose from and the increasing competition is driving the bargaining power of customers uphill. With more models to choose from in almost all categories. the market forces have empowered the buyers to a large extent. . India’s largest tractor and utility vehicle maker is buying the business assets of loss-making scooter maker Kinetic Motor Company for Rs 110 crore to gain an entry into the two-wheeler market.
COMPETITIVE RIVALRY The industry rivalry is extremely high with any product being matched in a few months by competitor. Bajaj has presence in it. BARGAINING POWER OF SUPPLIERS: Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work is outsourced. Proper supply chain management is a costly yet critical need.CONT. Also. if there is any substitute to a two-wheeler.. which again are a mode of transport. Cars. . THREAT OF SUBSTITUTE PRODUCTS There is no perfect substitute to this industry.
Honda motorcycle and scooter India. WEAKNESS: They have big gap between cubic capacities of its products.SWOT ANALYSIS STRENGTHS Hero Honda introduced First stroke bike in the Indian market. . OPPOURTUNITIES: Hero Hondas the first manufacture to launch eco friendly bikes with 4-stroke engines. Yamaha Motors India. Huge sale network (3500 Dealers). There is large no. THREATS: Main threats to Hero Honda are their competitors like: Bajaj Auto Ltd. They should go in new segments of bikes. It has the highest share in automobile sector. They have big opportunities in heavy bike segments. Spare parts are too costly. Hero Honda gives 80 Km/Liter Avg. Better sale service. of young consumers in the market. Company has to focus on them. TVS motors Ltd. Its market share is reducing from last few years.
EMOTIONAL BRANDING .
SEGMENTATION AND SUB BRANDING KARIZMA ZMR .
.Just 4 her. ....
Fill It Shut It Forget It .
000 motorcycles through each wave .000-16. HAR ANGAN • 500 men • 3 two months long waves • additional sale of 15.HAR GAON.
“Always game” • The ad for the premium segment Hunk doesn’t talk of speed or power at all — the focus is on the looks even while standing • The CBZ Extreme comes with the promise. “Thinking is such a waste of time” .ADVERTISING • Discarded product categorization on the basis of engine size • Product differentiation was the key • Avoided customer confusion of products • Karizma (premium segment) comes with the punch line.
priyanka chopra. . saurav ganguly. Brand endorsers. Hrithik roshan.Types of Advertisements Celebrity Advertisements…. Rajyavardhan rathore.Virender sehwag.
Types of Advertisements Print and Outdoor Advertisement… .
Types of Advertisements Covert Advertisement… Mujhe Kuch Kehana hai – CBZ Gavaskar Border Trophy – “Man Of The Match” Hero Honda Bike .
.. minds and souls.Types of Advertisements Public service advertisements • “DESH KI DHADKAN” has truly capture the Indian hearts. ..
orkut .0 •Immense fan following on twitter. Hero Honda SA RE GA MA PA . face book.Types of Advertisements Broadcast advertisements HERO HONDA ROADIES 5. 1.25 lakh fan followers on face book. •It has approx.
• Various schemes for government and military employees. • Good resale value. Each product with multiple optional features.Personal selling • • • • • Wide price range. Experience speaks. . First six service free Once in a year free check up for hero Honda bikes from authorised company service station.
Rs 1000 discount with free accidental insurance .Sales promotion • Large product portfolio starting from 37k to 95k • Consistent launch of variants in the same models • Wide range of colours available in each category • Vast network of more than 2100 committed Dealers and Service outlets spread across the country • Festive offers.
Sales promotion Cash incentive program .
Sales promotion cont… .
Navy or Air Force .” Availability on all CSD area depot. .either recountry at CSD pricetired or currently serving in the Indian Army.can avail of this facility.CSD “TOUGH MEN. All commissioned officers / staff . TOUGH BIKES FROM THE WORLD’S NO 1 TWO WHEELER COMPANY. anywhere in the.
.CORPORATE SALES Single window processing for delivery at multiple locations No running around for documentation Attractive finance options Hero Honda passport unique CRM program Bulk incentive scheme DGS&D Sale to any Govt. Depts. is done through DGS&D Ensures quality Negotiate with manufactures .
. Titled "Hero Honda Dhak Dhak Go“ Hero Honda recently won two very coveted awards .Press Release Celebrating its 25th year. Hero Honda released an innovative music video in the month of September. and the "NDTV Profit Business Leadership Award"."The Most preferred Brand of two-wheelers" award at the recent CNBC Awaaz Consumer Awards 2008.
The Goal Connect with the target group as a unique lifestyle and personality brand The Task To be present at almost every touch point with the communication target group The Challenge To break the clutter and communicate the Brand message .COMMUNICATION STRATEGY The Objective Enhance the image of HERO HONDA as most preferred bike of India.
CREATIVE ADVERTISEMENT .
V Exhibition &Event Radio Direct Marketing 30% .SUGGESTION FOR BUDGET ALLOCATION 10% 5% 40% 15% Newspaper &Magazines T.
Corporate Social Responsibility Sustainable Enterprise/Vocational Training The Green Supply Chain Green Roof Conserving energy Safe manufacturing Green technology “We Care about How” .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.