CONSUMER BEHAVIOUR

Assignment
INTRODUCTION

Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer
based in New Delhi, India. The company is the largest two-wheeler manufacturer in the world,
and also in India, where it has a market share of about 46% in the two-wheeler category.

Hero Honda started its operations in 1984 as a joint venture between Hero Cycles of 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, and focused on its entirely owned subsidiary, Honda
Motorcycle and Scooter India (HMSI).

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.

"Hero" is the brand name used by the Munjal brothers for their flagship company, Hero Cycles
Ltd.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel
economy and low cost. It maintains global industry leadership to date. The technology in the
bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years has come from the Japanese
counterpart Honda.

Hero MotoCorp has manufacturing facilities located at five locations in India. The five
manufacturing plants of Hero MotoCorp have a combined production capacity of more than 9
million vehicles annually.

 Satyavedu, Andhra Pradesh

 Dharuhera, Haryana
 Gurgaon, Haryana
 Neemrana, Rajasthan
 Haridwar, Uttarakhand

Hero MotoCorp has over 7,000 dealership and service centre units in 29 states and four union
territories of India.
PRODUCTS / SERVICES
Hero Motocorp extensive sales and service network now spans over to 5000 customer touch
points. These comprise a mix of authorized dealerships, service & spare parts outlets, and dealer-
appointed outlets across the country.
MARKET SEGMENTS, USP & POSITIONING

Hero MotorCorp product range includes variety of motor cycles that have set the industry
standards across all the market segments. The company also started manufacturing scooter in
2006. Hero offers large no. of products and caters to wide variety of requirements across all the
segments.

Hero Passion Pro is a commuter segment motorcycle.

Key Points:

Brand Name : Hero Passion Pro

Parent Company : Hero MotorCorp

Category : Motorcycles

Sector : Automobiles

Tagline/ Slogan : “A whole new world of style”; “Desh ki dhadkan”; “Dhak Dhak Go”

Hashtags : #ZamanaHogaFida #JiyoApneAndaazSe!

USP : Good styling and good mileage

Hero MotorCorp Passion STP:

Segment : Middle-class people who want a bike that is stylish and gives a good
mileage.

Target Group : Middle class youth from the age bracket of 25-35.

Positioning : A stylish bike which gives good performance.

Market Segmentation

Hero MotoCorp caters to a wide consumer base. It has segmented its market based on income
and age. It caters to youth of all income groups. Passion Pro is a favorite in sub urban and rural
India. It portrays itself as an efficient bike range to cater to Indian Roads.
Target Market

Hero MotoCorp follows selective specialization. It has a wide range of 22 Models in the price
range of Rs. 39400 to Rs. 1.08 lakh. Each product has multiple optional features. Its target
market includes lower middle class consumer to upper middle class consumer. It is affordable,
available and acceptable by all.

The USP that it uses is:

Strong, Sturdy and Powerful, Greater Mileage, Low Maintenance Cost, Safe to Ride, Ease and
Comfort.

Positioning Strategy

Fill it. Shut it. Forget it Campaign: This campaign focuses on the mileage of Hero bikes. It says
that once you fill oil in the bike’s tank, you are tension free. Due to its higher mileage, you can
travel as much as you want without bothering to refill oil.

Dhak Dhak Go Advertisement Campaign: Dhak dhak refers to the heart beat. Therefore this
campaign showed that if you are riding a Hero bike you are listening to your heart. This
campaign connects emotionally to the consumer as it shows the connection of bikes to the heart
of every Indian.

Desh ki Dhadkan Advertisement Campaign: Desh ki Dhadkan refers to the heart beat of the
country. It symbolizes that all people in India are emotionally attached to their country. Even
though there are a lot of cultural differences but the entire country stands as one. This campaign
places Hero bikes as the heart beat of the entire nation uniting everyone as a nation.

Event Sponsorships: Event sponsorships of various cricket matches is a positioning strategy as

cricket has a huge fan base in India. It positions itself as a strong, reliable, affordable and greater
mileage bikes.

Celebrity Endorsements: Various celebrity endorsements are used as their positioning technique.
Through Saurav Gaunguly, Hero portrayed itself as the heart beat of the country. Iconic figure
Hritik Roshan is known for his youth and physique.

Hum Me Hai Hero Campaign: This recent advertisement tries to prove that we all are born super
starts. We just need to focus and believe in ourselves. There is nothing impossible in this world
and there is nothing that can’t be achieved. Through perseverance we can reach great heights and
achieve whatever we want. We just need to believe firmly that we are a hero.

Hero MotoCorp is the largest two wheeler manufacturer and has the highest market share in
India. It has been successfully delivering its promise to its target customers. The aggressive
market positioning strategy that it uses places it way above its competitors. It relates itself to
every Indian.