MARKETING PLAN OF HERO MOTO CORP

PRESENTED BY-

INTRODUCTION
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

Type
Traded as

Public company
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)

COMPANY PROFILE

Industry Founded Founder(s) Headquarters Key people

Products
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

Website

www.heromotocorp.com

HISTORY
Hero Honda is worlds 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.

COMPETITORS

MARKET SHARE OF MOTORCYCLES IN INDIAN MARKET

Hero Honda
Bajaj TVS Yamaha LML Kinetic Royal Enfield Majetic

MODELS(product line)
Hero Honda Ambition 133,135 Hero Honda CD 100,CD SS, CD Dawn Hero Honda Splendor , Splendor+ , Super Splendor, Splendor NXG Hero Honda CBZ , CBZ Xtreme Hero Honda Passion , Passion+ , Passion Pro Hero Honda Karizma Hero Honda Hunk Hero Honda Pleasure Hero Honda Glamour

STRATEGIES

(A) BUSINESS

STRATEGY

The company has formed its business units based on the following parameters:

1.) Common manufacturing processes: - This is the most important parameter used by Hero Honda to create its SBUs as this depends on the engineering and assembly processes.

2.) 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.

CONT..
1 -Competitive Strategy 2 -Co-operative Strategy (B) CORPORATE STRATEGY 1-growth (Hero honda adopt Growth Strategy) -Conglomorate - Concentric 2 -Stability 3 -Retrenchment (C) FUNCTIONAL STRATEGY 1-R & D 2- Human research strategy 3-Marketing Strategy

PRODUCT PORTFOLIO OF HERO HONDA

Hero Honda has an extremely versatile product portfolio catering to the various segments of the two-wheeler industry. It has the CD Dawn and the CD 100 positioned for the entry-level bike segment primarily aimed at the rural market.

The CD Deluxe, Splendor and the Passion models are aimed at the first time users of the urban segment.
The Passion Plus, Splendor Plus, 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, Karizma, CBZ Extreme and Achiever. Finally, the scooter segment is represented by the Hero Honda Pleasure. Hero Honda has a strong product portfolio.

STARS are units with a high market share in a fast-growing industry.

QUESTION MARK -These units typically "break even", generating barely enough cash to maintain the business's market share. 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. These units typically generate cash in excess of the amount of cash needed to maintain the business. DOGS, or more charitably called pets, are units with low market share in a mature, slow-growing industry.

BCG MATRIX FOR HERO HONDA MOTOR LIMITED

PORTERS FIVE FORCE MODEL

THREAT OF NEW ENTRANTS Mahindra & Mahindra (M&M), Indias 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.

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.

CONT..

THREAT OF SUBSTITUTE PRODUCTS There is no perfect substitute to this industry. Also, if there is any substitute to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of transport. 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.

COMPETITIVE RIVALRY

The industry rivalry is extremely high with any product being matched in a few months by competitor.

SWOT ANALYSIS
STRENGTHS

Hero Honda introduced First stroke bike in the Indian market. Hero Honda gives 80 Km/Liter Avg. Huge sale network (3500 Dealers). Better sale service.

It has the highest share in automobile sector. WEAKNESS: They have big gap between cubic capacities of its products.

Spare parts are too costly. OPPOURTUNITIES: Hero Hondas the first manufacture to launch eco friendly bikes with 4-stroke engines.

Its market share is reducing from last few years.

They should go in new segments of bikes. There is large no. of young consumers in the market. Company has to focus on them.

They have big opportunities in heavy bike segments. THREATS: Main threats to Hero Honda are their competitors like:

Bajaj Auto Ltd.

TVS motors Ltd.

Yamaha Motors India.

Honda motorcycle and scooter India.

EMOTIONAL BRANDING

SEGMENTATION AND SUB BRANDING

KARIZMA ZMR

YOUNGISTAAN....

Just 4 her.....

Fill It Shut It Forget It

HAR GAON, HAR ANGAN

500 men 3 two months long waves additional sale of 15,000-16,000 motorcycles through each wave

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, Always game The ad for the premium segment Hunk doesnt 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

Types of Advertisements
Celebrity Advertisements.

Brand endorsers- Virender sehwag, saurav ganguly, priyanka chopra, Hrithik roshan, Rajyavardhan rathore.

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

Types of Advertisements
Public service advertisements DESH KI DHADKAN has truly capture the Indian hearts, minds and souls....

Types of Advertisements
Broadcast advertisements
HERO HONDA ROADIES

5.0
Immense fan following on twitter, face book, orkut . It has approx. 1.25 lakh fan followers on face book.

Hero Honda SA RE GA MA PA

Personal selling
Wide price range. Each product with multiple optional features. Experience speaks. First six service free Once in a year free check up for hero Honda bikes from authorised company service station. Good resale value. Various schemes for government and military employees.

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- Rs 1000 discount with free accidental insurance

Sales promotion

Cash incentive program

Sales promotion cont

CSD
TOUGH MEN, TOUGH BIKES FROM THE WORLDS NO 1 TWO WHEELER COMPANY.
Availability on all CSD area depot, anywhere in the.

All commissioned officers / staff - either recountry at CSD pricetired or currently serving in the Indian Army, Navy or Air Force - can avail of this facility.

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

Press Release
Celebrating its 25th year, Hero Honda released an innovative

music video in the month of September. Titled "Hero Honda

Dhak Dhak Go

Hero Honda recently won two very coveted awards - "The

Most preferred Brand of two-wheelers" award at the recent CNBC Awaaz Consumer Awards 2008, and the "NDTV Profit Business Leadership Award".

COMMUNICATION STRATEGY
The Objective

Enhance the image of HERO HONDA as most preferred bike of India.

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

CREATIVE ADVERTISEMENT

SUGGESTION FOR BUDGET ALLOCATION

10%
5% 40% 15%
Newspaper &Magazines T.V Exhibition &Event Radio Direct Marketing

30%

Corporate Social Responsibility

Sustainable Enterprise/Vocational Training The Green Supply Chain Green Roof Conserving energy Safe manufacturing Green technology We Care about How