HERO

MOTOCORP

AJAY GANSINGHANI
20152021
PGDM
ABOUT

01 02 03 04 05
Hero is the brand Hero Honda started In 2010-11 both The company is the Three
name used by the in 1984 as a joint companies are largest two wheeler manufacturing
Munjal brothers in venture between separated and Hero manufacturer in facilities based at
the year 1956 with Hero cycle of India become HERO India. Dharuhera and
the flagship company and Honda of japan. MOTOCORP LTD. Gurgaon in
Hero Cycles.
Haryana, Haridwar
in Uttarakhand,
and Mangli near
Ludhiana
 Market Size
15.4 Million (Approx.)

Motor cycles Moped

Scooters
10 Million 0.78 Million
2.7 Million

Hero MotoCorp
6.23 Million

Motor cycles Scooters

58% market share 15.2% market share
5.79 Million 0.41 Million
WHY RURAL MARKET

The rural market contributes approximately 45% of the total industry

demand
Only 10% of the households own a two-wheeler in the rural areas
"The majority of India lives in rural areas and the government is pumping
in a lot of money through various programmers. Hero Honda is focusing a
lot on rural markets. Going forward, a substantial industry growth is
expected to come from these markets.
- Pawan Munjal
The rural market is the right strategy for Hero as the penetration in
these markets is low,
To strengthen the network in rural areas , the company started sales,
servicing and spare part outlets in small towns and villages across India.
Har Gaon, Har
Aangan

Objectives
To reach every Indian home and
every Indian village
To build long-lasting relationships
with people
Ensuring purchase and service of
two wheelers in India is affordable
and convenient
Penetration in Rural Market- 10%
 Har Gaon, Har Aangan

Method
Meeting customers/ opinion leaders
Free check up bike camps/ Loan melas
Test ride camps
Ride Safe Program to educate customers on Safety &
Maintenance

Results -
Covered 1,30,000 villages
Increased Awareness
Increased buy-in for products
Rural vertical

Rural vertical was to focus on

Product development
Consumer understanding
Marketing
Distribution
After-sales service
 Market Research

Under the rural vertical, they started collecting a lot

of data at rural touch points

Many of their dealers are now meeting

Sarpanches
Headmasters
Aanganwadi
Workers
Opinion makers
to understand the rural consumer better.
CONTINUE

500 Sales Representatives to meet potential customer (local people as

sales executives )

Average of 16000 bikes per month. ( sales )

These representatives have been given work tasks and not sale targets -
they need to meet potential customers and opinion leaders in villages.

To strengthen their network in rural areas, the company started sales,

servicing and spare part outlets in small towns and villages across India.
Suitable Products

The most successful product is

SPLENDOR in rural market and the
company kept on focusing on
upgrading the models so, then they
later came up with SPLENDOR
PLUS and SPLENDOR NXG,
SPLENDOR PRO which provided
extra features and the consumers
were satisfied
Other Notable Programs
01
Dhadkanon Ki Rally -
The Queens Baton program passed
through 124 cities using Karizma
ZMR bikes
To compensate for this, a massive
rural activation campaign
Dhadkanon Ki Rally was started
across 22,000 villages, touching
more than 2 million people.
02
Khushiyan Har Angan
Undertaken to celebrate the spirit of
caring and sharing during Diwali
Rural executives travelled to 56,932+
villages in 2 weeks
Met 4,58,000+ people at their
doorsteps and wished them personally
Distributed branded box of sweets with
diyas
CONTINUE

03 04
Good Life Program Saral Finance
Provides magnetic card with special Tie-up with Cooperative and
rewards Grameen banks
Free riders insurance worth Rs. 1 Best rates, easy documentation
Lakh
Points on all workshop and
showroom spends can be
redeemed at stores or on their
website
Hero Motocorp Rural Strategies

Brand Displays in various Hariyali Kissan Bazaar

Centres across UP, MP, Haryana and Punjab
Genuine Spare Parts Programs
Camps held in association with Monsanto, Godrej
Aadhar, IFFCO etc.
Use of IT to capture details of sales in rural
markets
Identify customer mix, demand forecast,
enhanced coordination with distribution partners
Splendor, Splendor Plus & Splendor PRO
Hero Motocorp Rural Strategies

When it comes to service, the customer is not willing to go beyond 10

kilometres- a study by Honda
The Service-on-Wheels initiative has catered to above one lakh customers

To take this forward as a planned activity on a monthly basis, the company

recently launched a mobile service van
The van will be equipped with audiovisual equipment, washing facilities,
generator sets and a training work base
The AV equipment allows the company to have a class and conduct private
workshops through videos
 4 As of Hero
Acceptability (Product)
Strong brand image and product
quality
Most fuel efficient bike on Indian
roads
Preferred by daily users (utility as
well as looks)

Affordability (Price)
Cheapest motorcycles in India
Easy installments and loan
facilities
4 As of Hero

Availability (Place)
3 plants
3000 customer touch points
5000 dealership plus sales service outlets
Awareness (Promotion)
500 sales rep for Har Gaon Har Aangan
Free service camps every year
Advertisements in TV, newspapers, magazines
etc
 Promotion

Mapping the demographic landscape to formulate

region-specific modules to tap customers at a very
local level
leverage regional festivals such as Pongal and Onam in
the south, Gudi Padwa in Maharashtra, Durga Puja in
the eastern region, Dhanteras and Diwali in the north
region.
Skits and Dramas
Village haats and mandis are also being targeted to
reach customers
Tie-ups with new partners, including local cooperative
banks and financing units to have a robust financial
model and promotions
 Advertisements

TVC ADDS.!

TVC ADDS X-change melas

Radio Magazines
CSR for Rural areas

Ride Safe India

A 360 degree initiative on making Indian Roads safer to drastically
reduce fatalities. We are setting up Road Safety Riding schools across India and
plan to do campaigns on ground, on air, on social media, and in schools to educate
the masses & empower them to make a tangible difference. This initiative is
supported by the Ministry of Road Transport & Highways, Government of India.
Hamari Pari:
An effort to specifically empower the women of tomorrow a
concentrated initiative targeted towards the girl child aged 6+ from the
underprivileged sections of the society to help and support them in their holistic
development.
CSR for Rural areas

Happy Earth:
Aims at bringing change in our environment for, literally, making our
world a happy place to live in. We initiated 120,000 tree plantations in and around
New Delhi, building over 50 toilets in various schools and the future possibilities
are endless.
Educate to Empower:
Education is the basis of empowerment not only for the individual
but the society & economy at large. Our pledge for E2 is to support education,
knowledge sharing & skills development at all levels.
 RAMAN MUNJAL VIDHYA MANDIR:
Senior secondary school
1200 students, 61 teachers
Big play ground
Computer center
Library facilities
Ultra modern laboratory

PROVIDING CYCLE TO PHYSICALLY CHALLANED PEOPLE:

Hero ensure that every person is taken care of.

To identify this vision, Hero supports physically challenged individuals through
diverse initiatives and encourages them at every step of life.
CSR for Rural areas

Raman Munjal Memorial Hospital

- Multi-specialty hospital equipped with latest diagnostic and surgical
technology,
- Provides healthcare to the rural population in and around Dharuhera
Raman Munjal Sports Complex
- Has basketball courts, volleyball courts, and hockey and football
grounds, used by thelocal villagers
BCG MATRIX

SPLENDER
HUNK
SERIES
CBZ-
PASSION
EXTEREME
SERIES
PLEASURE
KARIZMA

CD DELUXE ACHIEVER
CD 100SS GLAMOUR
CD DAWN AMBITION
Porters five force model

1) Competitive Rivalry (High)

TVS, Mahindra, Honda.
Demand is high.
Growing population.

2) Threats on new entry (High)

Make in India.
FDI (100%)-impacting.

3) Substitute products (Moderate)

Availability of public transport.
Taxi, private players(OLA,)
Porters five force model

4) Bargaining power of supplier (Low)

Depends on our number of suppliers.
Hero mainly takes from china (lights) & Germany (engine parts).
Lacks of parts required; hence in market lots people are waiting to supply.

5) Bargaining power of customer (Moderate)

Low switching cost. Alternative /substitutes are available.
Competitors (TVS, Honda, and Bajaj) but same price range.
SWOT ANALYSIS

STRENGTHS :

Ability to understand customer needs & wants.

Recognized & established brand name.

Strong distribution network & service centers.

Due to the large range of products that are available, almost the entire
customer base is covered.
SWOT ANALYSIS

WEAKNESS :

R & D is not close to the Hero manufacturing plant.

Recently the joint venture of Hero & Honda has been broken.

People are not familiar with new logo of Hero.

SWOT ANALYSIS

OPPORTUNITIES :

Expansion of target market(including woman).

To become Indias leader in the scooter market.

THREATS :

Bajaj motor, TVS motors are strong competitors .

Honda can also big threat for Hero.

THANK YOU..!!!