Group Project

For

Principles of Marketing

in

Two Wheeler Industry

Product/ Service – Two Wheelers

 Honda (MNC)
 Hero (National)
 Bajaj (National)

PGCBM 2018 (BATCH 34)

XLRI JAMSHEDPUR

Centre: - Sector 46 Gurgaon, Haryana

Submitted to: Submitted by:

Dr. Pingali Venugopal Aayush Saxena - (SMS ID: 2087227)
Maninder Singh - (SMS ID: 2018780)
Rahul Sharma - (SMS ID: 2018726)
Shaleen Shrotriya - (SMS ID: 2018777)
Marketing Product:

Marketing
Product Bajaj Hero Honda
From a technical perspective, all the three brands i.e. Honda, Hero, and Bajaj
offer the same technical product. Technically, a motorcycle is a mechanical
machine that consists of moving metal parts and fluids, which when are made
to move in a sync to produce motion. The legal definition of a motorcycle for
the purposes of registration, taxation and rider licensing in most countries is "a
Technical powered two-wheel motor vehicle". The specifications may differ based upon
the models and the segment into which a motorcycle fall under but the technical
features i.e. the materials used to make these motorcycles, the fuel on which
these motor cycles run, etc. is the same. In other words, all the bikes
manufactured by these brands have brakes, engines, seats, lights, frame, exhaust
pipes, wiring cables, etc.
From a functional perspective, all the three brands i.e. Honda, Hero and Bajaj
offer very little differentiation among their products but the basic functionality
of the bike remains the same, i.e. the gear shift changes the gear selected in the
Functional
transmission, the functionality of the throttle is to accelerate from a stop or a
moving position, the functionality of brake is to decelerate the motorcycle, the
functionality of headlamp is to provide proper visibility, etc.
By definition emotional products includes the emotional benefits derived from
the product and this is where these brands namely, Honda, Hero, and Bajaj
Emotional
differentiate themselves with their competitors. The below table illustrates how
these brands distinguish their products from that of their competitors:
Platina - The advertisement of
Dream Neo - The
platina depicts a guy driving the
Splendor - This advertisement for
bike through potholes and shows
advertisement 'Dream Neo'
that the bike is very durable.
depicts the bike Depicts that this
Through this ad the manufacturer
Convenience being driven in bike is very
tries to convey that this bike is
Need rural areas and convenient to
made for conditions (potholes)
during rainy season operate on unpaved
which are commonly found in
and shows its roads and
rural areas and people can travel
convenience. background setting
conveniently using this
is set in rural areas.
motorcycle in these areas.
Glamour - The
Honda Shine - The
advertisement for
commercial of
Discover - The advertisement of Hero Glamour is
Shine is focused on
Bajaj Discover focuses on its more oriented
the looks and
features and there is a clear towards the looks of
Social Need graphics of the bike
indication that it is positioned to the bike and shows
and even the tag
meet the social need of that this bike is very
line 'Shine karte
acceptability. trendy, which is a
hain hum', indicates
clear indication that
the presence of
it is positioned to
 meet the social need social need of
of acceptability. acceptance.

Pulsar - The advertisements for Karizma - The

Bajaj Pulsar are characterized by commercial for
lot of people performing Karizma depicts
CBR - This Bike is
different type of stunts in urban that protagonist
positioned as a
landscape. These ads clearly riding the bike in a
premium sports
show that very little to no storm and even the
bike and targets the
Rebel need consideration is paid to safe tag line 'Always
youth who have a
driving (which has been the game' shows that
rebel need that
traditional norm) and point that this bike is targeted
needs to be
these bike is aimed for the for the youth who
satisfied
younger generation who have a are looking for a
rebel need that needs to be sports bike and who
satisfied. have a rebel need.
Avenger - The advertisement of
Bajaj Avenger shows a young
man cruising through the open
country and he is trying to convey
Spiritual
a message that he is not bothered N/A N/A
Need
about what his Father, Boss, etc.
think about him and he feels at a
different level after riding this
bike.
Deluxe HF - The CD110 - The most
CT 100 - The most affordable
Affordability most affordable bike affordable bike by
bike by Bajaj
by Hero Honda in India
Environmental Analysis for the Product(s):

Market Market Implications

Environment
Demographic
Industry Size: Domestic motorcycle sales stood at 11.09 million units in FY17. Sales
have grown at 2% CAGR in the period FY13-17. There are around 11
players in the market. Five Players Hero MotoCorp, Bajaj Auto, HMSI,
TVS Motors and Royal Enfield control 93% market.
Hero MotoCorp is the leader with 50% market share. Splendor is the
largest selling motorcycle in the country with sales of 2.5 million units in
FY17. Other models of Hero like Passion, HF Deluxe and Glamour have
sold a total of all around 3 million units.
Bajaj Auto has a market share of 18% and its top models are Pulsar, Platina
& CT 100 with sale of around 1 million.
HMSI has a market share of 12%, its top model is CB Shine with sale of
around 0.7 million units.
Hero MotoCorp has lost market share since FY13, it was 53% versus 50%
in FY17.
Bajaj Auto is the leader in exports, it exported 1.21 million units in FY17,
comprising 52% of total exports of two-wheeler from India. Bajaj auto is
only present in motor cycle segment.
Family Structure: One big reason for the spurt in sales has been women commuters who like
the ease of zipping in and out of chaotic city traffic on their gearless
scooters. Honda leads the scooter market, in which women share is 35%.
Rural Areas: Besides rising incomes and growing infrastructure in smaller towns and
non-urban areas like road construction project is leading to increase in
volume in villages and smaller towns.
Hero is good in rural market due to trust of brand, after sales service.
Bajaj: Price sensitive brand. Cheaper than Hero.
Economic
Increase in credit Two-wheeler loans and financing has been on a rise, due to easy
and financing availability and less interest rates the demand has increased.
Increase in Due to opportunities offered by multinationals the disposable incomes of
Consumer Salary salary individuals have increased manifold.
Delay in initiation Probably a future threat to the two-wheeler market, the implementation of
of Mass Transport the mass transport system has been delayed. However, the two-wheeler
System market in India is a fast-growing market due to its technological
advancements in product in product manufacturing and emphasis on
design innovation.
Technology
Fuel Efficient Hero, Bajaj and Honda all are manufacturing fuel efficient engines for
Bikes better mileage and low running cost.
Self-Start All the 3 brands are equipped with self-start feature which makes it easier
 for old age people.
Safety Features They have added safety feature like ABS in premium bikes for better
like ABS stability under emergency braking conditions.
Auto-Gear They have also launched gearless scooters due to which women
Scooters commuters have increased.
Political
Road Connectivity Demand for two wheelers from rural India is 50%, 2 out of every 5-two-
wheeler sold is in rural India.
Government’s vision of road connectivity to rural areas will help in
demand for two wheelers.
Lack of Public Public transport in India is still not fully developed. Two-wheeler provide
Transport last mile connectivity and are also very convenient mode of transport.
Focus on Exports Indian Manufactures like Hero, Honda & Bajaj are concentrating more on
exports. Lot of potential is seen in countries like Vietnam, Thailand,
Indonesia, Middle East, Latin America & African nations.
AMP 2026 Automotive Mission Plan (AMP-2026) envisages that the government and
Indian Automotive industry will work together to take Indian to its rightful
position in the global auto industry. The target is to achieve annual
production of 1616000-1889500 crore from 464000 crores currently in the
OEM, auto component.
Socio Culture
Change in mindset From few years the trend has changed Women commuters have increased.
of population Government is also taking initiative to encourage women commuters to
drive gearless scooters which is easy to ride.
Status Symbol Nowadays Premium bikes like Royal Enfield, Pulsar etc. have become a
status symbol. The kind of bike one owns is the status determining factor.
Competition
EV Vehicles Government has a 2030 target to transition country entirely to electric
vehicles. Government has also imposed Zero GST on EV vehicles.
Approx. 0.5 million electric vehicles have been sold in past 6 years over
17 million two wheelers.
Automotive companies have started investing in electric two-wheeler
startup Ather Energy.
Hero MotoCorp is working on developing electric two wheelers in-house
at its center in Jaipur.
Bajaj Auto has reportedly announced plans to launch new brand Urbanite
for EVs.
HMSI kickoff talks with stakeholders in India to bring down costs &
launch products here.
Pollution Due to increase in pollution in metro cities most people prefer to buy Four
Wheelers than two-wheeler.
Bicycle People in IT corridors have started using Cycle as a mode of transport,
however this trend is yet to catch up.
Study of Advertisements:

BAJAJ AUTO LIMITED:

1. Hamara Bajaj TVC
a. 1989 Version
Link: https://youtu.be/scltYH13uEY
b. 1995 Version
Link - https://youtu.be/67u43tX6wpc
c. 2001 Version
Link - https://youtu.be/zCDsbD4EHr4
Bajaj Auto Limited launched this TVC in the year 1989. Through this TVC Bajaj Auto Limited
tried to link emotional connect with the customers. With this TVC Bajaj was able to capture the
joy Ride of middle class family of India. The main Idea conveyed through this advertisement is
that Bajaj is an integral part of the family. It also showcased as a symbol of unity in the Indian
families. Bajaj majorly used “Hamara” as terminology which symbolized One-ness/Unity of
Indian families. It is also linked with nationalism. In the first version of this advertisement Bajaj
Auto Limited used its Geared Scooter.
In the second & third version of this TVC of “Hamara Bajaj” company added some more models
(Bikes & gearless scooter). It also displayed diversity in his tvc by showing different communities
of the country. With this version Bajaj tried to capture its existence in each and every community
of the country.
With “Hamara Bajaj” Campaign Bajaj tried to capture spirit of the Country.
With time Bajaj changed its strategy of TVC’s by comparing its products with the competitors by
displaying the major features of its product.

2. Platina TVC: In this TVC of Platina, Bajaj tried to covey that its products are made for the
conditions (Potholes) which are commonly found in rural areas and with the advance
technology and durability of bike people can travel conveniently with a better life of the
vehicles.
Link: https://youtu.be/j58DNZUk0kw

3. Pulsor TVC: Bajaj Auto changed the typical style of the TVC with the launch of this product.
In all versions of Pulsar Tvc’s Bajaj Pulsar are characterized by lot of people performing
different types of stunt in urban landscape. These ads clearly show that very little to no
consideration is paid to safe driving (which has been the traditional norm) and point that these
bike is aimed for the younger generation who have a rebel need that needs to be satisfied. In
the later version of Pulsar TVC company also showcased the important milestone of the
product under the name “1 Crore Pulsars – Join the tribe”.
Link: https://youtu.be/6rgLwYpFWm8
Link of 1 Crore Pulsar : https://youtu.be/lrf_NIB5LsU

Down the line Bajaj changed its style of Advertisement by showcasing Spiritual needs of the
customers.
4. Bajaj Avenger – Feel Like God TVC
Link: https://youtu.be/y10OJ1pNW3o

It is one of the popular tvc of Bajaj Auto Limited. Through this tvc Bajaj showcased a unique
concept of feeling above/different from normal life problems through a Tag “Feel like God”.
Through this tvc, Bajaj tries to capture the spiritual needs of the customers. After this tvc Bajaj
Avenger gained a major Market Share since its inception.

Conclusion: Bajaj Started its TVCs by making an emotional connect with the customers by
giving message of Unity and showcasing Indian Middle-Class Family customer in “Hamara
Bajaj”. Later Bajaj changed its strategy showcasing its technology and linked them with the
Indian consumers’ needs. In the recent version of TVC, Bajaj showcased a unique concept of
“Feel like God” by making customer feel standing out of the crowd from regular crowd.

HMCL Advertisements /TVCs:

1. Fill It - Shut it – Forget It
Link: https://youtu.be/awojQZ-VD-I

It is one of the most popular advertisement made by HMCL (Then Hero Honda). Through this
advertisement HMCL changed the mindset of the customers from Scooters (At that time
scooter become more popular) to Bikes. HMCL understands the need of the customer of high
mileage TW and linked it with their need through the Tag Line “Fill It – Shut it – Forget It”.

2. Hero Honda Desh Ki Dhadkan

Link: https://youtu.be/x0cRpr51Kpk

Through this TVC HMCL (Then Hero Honda) showcased Hero Brand as an integral part of
the life of the consumer. In this, HMCL also displayed diversity by showing different
communities of the country.

3. Hum Mein Hain Hero

Link: https://youtu.be/qP-bK1aLHFg

Hero Moto Corp changed its marketing strategy from Product specific to Customer centric.
Through this TVC, HMCL tried to touch the hearts of the customers which helped the company
to make an emotional connect with the customers. This TVC majorly emphasized that every
person has a hero inside it. This shows struggles of individuals, and the way they overcome
from them and turn into a true and successful hero.

4. Hero Salutes - Hero salutes the real Heroes of India.

Link: https://youtu.be/3u0McB2-NGM
 HMCL also used various marketing strategies for promoting the Institutional business of the
company. Armed forces (CSD Business) being one of the major contributor of TW Industry
Volume, HMCL always ensured to touch this aspect of the Business. Through this TVC,
HMCL smartly highlighted its products & their availability in CSD Business. The core idea of
this TVC is to make an emotional connect with the consumers by showing gratitude towards
Armed forces.

5. Why Should Boys Have All the Fun - Hero Pleasure TVC featuring Alia Bhatt

Link: https://youtu.be/y97kLwoN9ag

In this TVC, HMCL showcased the Rebel need of Consumer. With the unique tag line “Why
Should Boys have all the Fun” HMCL touched a sensitive issue of the community (i.e. Gender
Equality). HMCL also used various Celebrities as Brand Ambassadors who are correctly
matched with the situation of the advertisement. In this TVC HMCL engaged Bollywood
Actress “Alia Bhatt” for highlighting the concept of Gender Equality.

Conclusion: In the early TVCs HMCL only highlighted the products & its features in order to
realize his customers to have best products with them, but later HMCL changed their strategy
of marketing and majorly focused on the sentiments of the customers by making an an
emotional connect with the customers through its TVCs. It also highlights some social issues
in its Advertisement’s.

HMSI (Honda Motorcycle & Scooter India Ltd.) Advertisements /TVCs:

1. 2010 Honda 2 Wheelers India Corporate TV commercial promotional video

Link: https://youtu.be/Jw6HWvWYgSM

With this TVC, HMSI tried to showcase the main strength of the company i.e.- Quality. HMSI
focused on the customers whose need of TW is for family purpose. Through this advertisement
HMSI tried to satisfy the Individual need (Convenience Need) of the customer.

2. Honda Corporate TVC- “ Pancchi Udaa Jaaye”

Link: https://youtu.be/Hn22ACEGjFU

In this advertisement, HMSI focuses on brand logo. Through this HMSI targeted to make its
customer recall the logo i.e. ‘Wings’. Towards the end, it shows “Sach Kar Denge Sapne” and
this motivates the consumer to aspire for high dreams and make them come true.

3. Honda Corporate TVC 2018 – “Teri Har Udaan Hamari Shaan Hai”

Link: https://youtu.be/2Eak9-SJ-kI
 In this advertisement HMSI highlighted an important aspect “How does it feel to make
someone fly”. Through this TVC, HMSI is helping its customer to chase his dreams. It is also
highlighting its various sections of business like Honda Training Academy, On Road Service,
Advanced Training for female, Honda Safety Park, etc. The unique thing featured in this
advertisement is the long-term association with the brand by showing two photos of mother
and son in different time frames.

Conclusion: In addition to highlighting the technical aspects of products, HMSI also

emphasizes on the fact that the HMSI is making its consumer dreams come true. The other
common feature observed in all TVCs of HMSI is that it is not only centered towards Indian
population but focuses on various communities worldwide which is very prominently
represented by including people from various countries.

Positioning:

Positioning of Bajaj Auto Limited over its Lifetime

Bajaj is a well-known global brand when it comes to manufacturing two-wheelers and three-
wheelers. It was founded in 1945 and at that point of time it started selling imported two-wheelers
in India. Later, Bajaj obtained a license from the Government of India to manufacture two-
wheelers. Principally, it started as a scooter manufacturer and over the course of time converted
the segment to produce motorcycles. At that point of time Bajaj had a complete monopoly on the
two-wheeler market and its name its name was synonymous with scooters as Bata stood for shoes.

Foreign players started entering the Indian market during the 1980’s but Bajaj had built up several
advantages and had a robust brand name irrespective of the fact that the foreign brands boasted
superior technology and glitzier brands. During the first stage of positioning (i.e. generic
positioning), Bajaj focused on the Indian value of collectivism which is clearly evident from the
famous advertisement of “Hamara Bajaj”. This commercial became very famous and was
considered as the anthem for Bajaj. The India middle class was the primary target and with a
combination of affordable pricing and attractive campaigns and with a very non-existent
competition Bajaj was positioned in the top quadrant.

When Hero Honda entered the market in 1984 and started offering motorcycles to the Indian
consumers, the share of motorcycles progressively increased among two-wheelers and
considerably Bajaj’s share in the two-wheeler segment fell considerably. Additionally, Bajaj’s
competitors also launched gearless scooter and customer started migrating away from Bajaj’s main
product (geared scooters). Though Bajaj had also entered the motorcycle segment after a tie up
with Kawasaki, but it was lagging behind its competitors (namely, Hero Honda) and its attempt to
launch a gearless scooter also failed miserably. This was a major set-back for Bajaj which a few
decades ago was the undisputed leader in the Indian two-wheeler market.

After the above-mentioned crisis Bajaj invested in R&D and product development and the Bajaj’s
management aligned that there was a dire need to come up with new models to stay competitive.
As a result of the above-mentioned change in strategy Executive commuter bike Caliber was
launched in 1998 and managed 1 lakh units within 12 months. It was followed by Wind 125
standard street bike in in 2003. This bike was renamed within a year as Discover for the 125cc
segment and the 100cc version was launched as Platina in 2006. Bajaj forayed into the Premium
bike segment with Pulsar and Eliminator in 2001. The Pulsar brand turned out to be a huge success
for the company. Tens of design changes and hundreds of variants later it still continues.
Eliminator was discontinued in 2005 and replaced with Avenger in 2005. Lately Bajaj has also
formed an alliance with KTM to launch pro-bikes.

There has been a clear change in the positioning and targeting strategy of Bajaj, A few decades
ago it was trying to position its products for the India middle class and that has now shifted to
targeting the youth with model like Pulsar, Dominar, etc.

Attribute-based positioning
Bajaj Auto Limited focuses on the attributes of its products, this is visible from the message on
their website - "Better Technology, Better Performance - When you buy a Bajaj motorcycle, you
are at edge of biking technology and assured of best in class feature performance. In the various
commercial, Bajaj focuses on the new technologies that they are incorporating in their products be
it the DTSI- technology and many other features.

Emotional based-positioning
For a good part of the last century Bajaj Auto Limited was a common house hold and they were
able to establish a very strong connect with their consumers. The 'Hamara Bajaj' campaign
resonated well with the Indian values of collectivism and was focused on the entire house hold
rather than an individual. However, that Strategy changed and with the introduction of newer
models such as Pulsar, Dominar etc. Bajaj has been trying to woo the youth and to an extent they
have been very successful in doing so.

Positioning of Hero MotoCorp over its Lifetime.

Hero MotoCorp Limited, more commonly known as Hero Motorcycles, is an Indian two-wheeler
manufacturer, producing motorbikes and scooters. Formerly known as Hero Honda Motors
Limited, it was a union of Hero (an Indian company) and Honda (a Japanese company) for 26
years from 1984 to 2010. Hero MotoCorp Limited is the world's largest manufacturer of two-
wheelers. The company was established as a joint venture company between Honda Motor
Company of Japan and Hero Group. In the 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 fruitful joint ventures worldwide.

Since the economy was recovering from the 1970’s oil crisis and its after effects were also visible
in the 1980’s Hero Honda positioned itself as a manufacturer of fuel efficient motorcycles. During
the 1980s, the company introduced motorcycles that were popular in India for their fuel economy
and low cost and this is clearly evident from a famous commercial for the model CD 100 which
stated, “FILL IT, SHUT IT and FORGET IT”.

During the 1990’s Hero launched the ‘Splendor’ model, which went on to become its bestselling
model till date and this established Hero on the global landscape as a major player. Until now Hero
had positioned itself as a manufactured of fuel efficient two-wheelers but during the early 2000’s
its competitors were making inroads in the premium and the sports bike segments. That when Hero
came with Karizma and Karizma ZMR which had a sporty look to it. This also positioned Hero
MotoCorp in the premium bike segment where Bajaj was leading the race.

In 2010 Hero and Honda Motor Corp. decided to part ways and end their 26-year-old partnership
due to unresolved difference and focused on individual plans. Under the joint venture Hero Group
could not export to international markets (except Nepal, Bangladesh and Sri Lanka) and the
termination would mean that Hero Group could now export. The name of the company was
changed from Hero Honda Motors Limited to Hero MotoCorp Limited on 29 July 2011. New
models which were developed by Hero’s own technology have helped the company maintain over
50% share of the domestic motorcycle market. The challenge for the company lies in cornering a
larger pie in the country's fast-growing scooter segment where former partner Honda controls as
much as 60% of the market.

Attribute-based positioning
Hero Moto Corp believes in value added competitive pricing policy in which company provides
products at reasonable rates with better quality as compared to competition. This can be established
with the old CD 100 add of "FILL IT, SHUT IT and FORGET IT'.

Emotional based-positioning
Hero MotoCorp has always been very successful in establishing an emotional connect with its
consumers, this is clearly evident from its numerous commercials with the famous tag line - "Desh
ki Dhadkan". The ‘Hum Mein Hein Hero' campaign of Hero MotoCorp, became one of the most
popular advertising jingles and It found resonance with everyone, especially youngsters who were
buying bikes for the first time.

Positioning of Honda Motorcycle and Scooter India (HMSI) over its Lifetime.
Honda Motorcycle and Scooter India, Private Limited (HMSI) is the wholly owned Indian
subsidiary of Honda Motor Company, Limited, Japan. Hondo Motorcycle and Scooter India is
well acquainted with its India consumers because of its 26-year-old partnership with Hero
MotoCorp which ended in 2011. Its foray as HMSI, a wholly-owned unit in 2000, saw the Honda-
Activa becoming an instant hit with customers and continues to set new standards for the scooter
sector in India. Within a couple of years after the launch of its successful models including Activa,
Dio and Eterno, HMSI had emerged as the largest scooter company in India.

HMSI, while having a notable presence in motorcycles, has mainly penetrated markets with its
urban-centric automatic scooters, a segment it dominates with a 60% market share in the country.
Given the increasing demand in both domestic and export markets, HMSI is working towards
scaling up its current production capacity as well as expanding its sales and service across rural
areas. Electrification trend is catching up in India and HMSI is engaged in talks with SIAM
(Society of Indian Automobile Manufacturers) to create a sustainable roadmap towards the
conceptualization, development and production of EVs.

Attribute-based positioning
HMSI has always had the upper hand when it came to technology, Honda was a well know brand
even before they set up their operations under the HMSI brand (because of their 26-year-old
partnership with Hero MotoCorp). HMSI has been very successful in leveraging this to their
advantage and this is clearly reflected in the market share that they hold in the gearless scooter
segment.

Emotional based-positioning
In addition to highlighting the technical aspects of products, HMSI also emphasizes on the fact
that the HMSI is making its consumer dreams come true. This can be established from their
advertisement campaign of "Sach Kar Denge Sapne”.

Marketing Strategies of HMCL, BAJAJ & HMSI:

HERO MOTO CORP:

Advantage of Highest Distribution Network: The Back Bone of HMCL is the vast network of
distribution (Around 6500+ Touch Points Pan India) with dealer appointed at retail outlet at all the
important and strategic locations which helps in gaining customer satisfaction on availability of
spares/service and results into brand trust in customers’ mind.

Customer Relationship Management Program: In order to get more benefit of customer trust
Hero Moto Corp came up with “Passport Program” which is largest CRM program of the world.
In this, customer is getting benefits while availing the services of Authorized Outlets. Due to this
program Brand has gained repetitive sales from its customers. Hero Moto Corp showcased this
program through various Advertisements and other mediums of the promotions.

Pricing Strategy: Hero Moto Corp believes in value added competitive pricing policy in which
company provides products at reasonable rates with better quality as compared to competition. It
offers two wheelers of varying price range in order to satisfy the needs of the consumer.

Emotional Connect: Hero Moto Corp always believe in touching the hearts of the customers
which creates an emotional connect of the customer with the brand. In order to cater this, Brand
had come with a new anthem “Hum Mein Hai Hero”, which emphasizes that every person has a
hero inside it. The advertisement of this anthem also shows struggles of individuals, and the way
they overcome from them and turn into a true and successful hero.

Association with Sports/Youth: For most of its promotional activities, Hero Moto Corp has
shown its association with sports. It actively participated in Cricket, Hockey and Golf Tournaments
and showcased its products during the events. The Brand also endorsed various players for its
promotional advertisements. Recently Hero Moto Corp endorsed Virat Kohli for its latest version
of premium Bike “Extreme 200 R”. With these types of association with Sports, Company always
try to attract youth for its products.

CSR Initiative: Hero Moto Corp is very active in CSR Initiatives which helps his brand to connect
with common people. In a CSR Initiative Hero Moto Corp incorporated a new initiative “Chalo
Sakhi Program”. Under this program Hero offered scooter training to the females/women so that
they can use scooter for their daily commuting. This initiative helps the brand to make connect
with the rural market (Which is the major contributor in Industry).
BAJAJ AUTO LIMITED:

Customer Centric: It is the most recognized brand in India and outside India (As Bajaj is
exporting in more than 70 countries in the world). Bajaj has adopted both above the line and below
the line Marketing Strategy in order to advertise its products to the consumer market. The target
customer for Bajaj Auto Limited are the middle-class section of the society who desires for a
stylish bike with a good mileage and with affordable price. The target customers are generally
comprised of youth between twenty-three to thirty-five age group. It offers several types of
products in different categories in order to meet consumers demand. It has adopted several pricing
strategies. For premium category bikes, Bajaj has maintained a mid-premium pricing strategy that
helps the availability of bikes at very low affordable price as compared to other players in the
market of same range/ with similar product.

Avenger FLG Rides: In order to promote premium segment bikes of the company, Bajaj auto
organized different Bike Rallies under the name “Avenger FLG Rides”. The main motive of these
rallies is to make the customer feel different/premium from crowd of other players in same segment
bikes. Through this company targeted youth & working executives within age group of 25 years
to 35 years.

Link: https://www.bajajauto.com/bajajavenger/flgrides/index.html

Penetration Pricing Policy: In Entry Segment Category (100cc bikes Contributing Mass Market)
Bajaj has adopted a Penetration Pricing Policy. With this policy Bajaj keep its product price
reasonable so that every segment of the society can make an easy purchase. Customers find its
products value for money when they compare them with the competition brands. With this
approach, Bajaj has a good hold (Market share) in Entry Segment bikes.

HONDA MOTORCYCLE & SCOOTER INDIA LIMITED:

Capitalized First Entrant Benefit: Post partition with Hero & Honda in the year 2010, the major
challenge faced by HMSI was low availability of models in Honda Basket (As majority of Models
went out with Hero). Initially Company focused its major Strength “i.e. Scooter” (Honda has a
benefit of first entrant in Four Stroke Gearless Scooters). With the success of joint venture with
Hero Moto Corp, Honda was already a household name in India. So rather than putting its efforts
on Brand Building HMSI majorly emphasized on offering innovative products at very competitive
prices, unique promotional campaigns and growing an extensive distribution network. In its
various promotional campaigns Honda focused/displayed its High Edge Technology as a major
strength as compare to its rivals.

Link with Honda Logo: In Honda Corporate Advertisement brand links the customer’s emotion
with company’s logo “Wings”. In the ad Honda reinforced that “Wing” mean Honda's time-tested
reliability, technology, legacy of excellence, quality and innovation. In totality, Honda's wings
enable people to chase their dreams.
Advertisement Link - https://youtu.be/iGLdmKb3cpc
Recommendations for Each Brand:

Economic Remarks Threat/ What Needs to Recommendation

variables Opportunity be Done to
Encash an
Opportunity or
Suppress the
threat
Economic Because of Opportunity- Encash on All the three
Variables easy Bank Loan demand companies can
availability of enhances and encash the
Interest Rates loans at eases the opportunity to sale
cheaper rates, purchasing their bikes to the
all these three power of the customers with
brands were customers low financial back
able to sale up
their products
with a greater
volume
Political In India, Threat- Encash of The ease of entry
Variables foreign The ease of Demand of foreign
companies can entry of foreign companies is a big
Indian easily enter and companies is a competition for
Government start their big threat for Indian companies
Rules regarding business with Indian to sale the
entry of foreign post companies as it products in Indian
brands/companies liberalization creates a big market as Indian
competition for companies do not
Indian have the
companies like capability to
Bajaj and Hero. utilize untapped
market.
Infrastructure In India, most Opportunity- Encash of As age is a very
variables of the As the major Demand big factor for the
population of consumers of target audience in
Age Composition the age these bike India, these
between 18 companies are companies have a
Years to 30 youth, they have big untapped
Years is the a very big market. Also, as
major rider’s market to sale day-by-day the
age of these their bikes. bikers’ figures are
bike increasing, they
companies. have a very high
potential market
in India.
 Technological Technology Threat- Have a good The Indian bike
Variable plays a vital role As many foreign R&D facility manufactures
in bike companies have to develop
Constantly manufacturing Are coming and and invest in
Changing and functioning investing in their their R&D
Technology of bikes with all technology part centers to come
bike in India, it up with new
manufacturing creates a very technologies that
companies in big threat to can compete
India Indian bike with another
manufactures as foreign bike
they don’t have manufactures in
that big tech India.
R&D centers
Socio-cultural In India the Opportunity- Encash of A jingle in an
Variables figure of women As the literacy Demand advertisement of
riders is rate is increasing a scooter was
Women Riders increasing. in India, the there “ Why
women riders should boys
are also have all the fun”
increasing in Women riders
India which is a are increasing
great which turns to
opportunity for be a very big
Indian bike potential market
manufactures to for bike
sale their bikes manufactures in
in India. India. Also,
nowadays
companies are
coming up with
women biker’s
club to promote
women bike
riders in India.

References:

https://timesofindia.indiatimes.com/business/india-business/Hero-Honda-split-terms-
finalized/articleshow/7109297.cms
https://www.business-standard.com/company/hero-motocorp-237/information/company-history
https://en.wikipedia.org/wiki/Bajaj_Pulsar#2003
https://en.wikipedia.org/wiki/Hero_MotoCorp
https://economictimes.indiatimes.com/industry/auto/two-wheelers-three-wheelers/hero-
motocorps-success-post-split-with-honda-reflects-companys-growing-
stature/articleshow/59995093.cms
https://en.wikipedia.org/wiki/Honda_Motorcycle_and_Scooter_India
https://indianexpress.com/article/auto-travel/bikes/ktm-turns-over-a-new-leaf-with-bajaj-autos-
2008-rescue/
https://en.wikipedia.org/wiki/Bajaj_Auto
https://www.globalbajaj.com/global/english/about-us/about-bajaj/history/
https://www.business-standard.com/company/bajaj-auto-28074/information/company-history
https://www.motorbeam.com/the-history-of-bajaj-auto/
https://www.referenceforbusiness.com/history2/82/Bajaj-Auto-Limited.html
https://asia.nikkei.com/Business/Companies/Eight-years-after-breakup-Honda-poses-stiff-
challenge-to-Hero-Motocorp
https://autotechreview.com/conversations/interactions/hmsi-is-riding-the-two-wheeler-growth-
wave
https://www.financialexpress.com/industry/honda-motorcycle-and-scooter-india-eyes-north-
india-to-take-on-hero/993748/
https://www.businesstoday.in/lifestyle/report/hero-new-ad-hero-motocorp-branding-hum-mein-
hein-hero/story/22005.html
https://www.bajajauto.com/motor-bikes
https://www.heromotocorp.com/en-in/
https://www.honda2wheelersindia.com/

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