The two-wheeler industry has been in existence in the country since 1955. The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India
Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959.
Hero Honda Motors Limited, based in Delhi, is the worlds Largest manufacturer of motorcycles . A joint venture that began in 1984 between the Hero Group of India and Honda of Japan. Hero Hondas Splendor is the worlds largest selling motorcycle. 4
Type : Public company BSE:HEROHONDA M Founded: January 19, 1984 in Gurgaon,Haryana, India Headquarters : New Delhi, India Key people: Brijmohan Lal Munjal (chairman & founder) Toshiaki Nakagawa (joint managing director) Pawan Munjal (CEO) Industry: Automotive Products: Motorcycles, Scooters Revenue: U$ 2.8 billion Website: www.Herohonda.com 5
Hero Honda is world’s third largest 2-wheeler maker. 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. 6
Today Hero Honda has an assembly line of 9 different models of motorcycles . Currently the largest producer of Two Wheelers in the world. Sold 3 million bikes in the year 2005-06. 7
Vision of the Hero Honda is “to offer the highest quality at a reasonable price to meet the customers’ expectations and to exceed them”.MISSION Hero Hondas mission is to strive for synergy between technology,ststem and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities.
Being the most fuel efficient Company. To develop Appropriate product & excellent Quality. To Meet the demands of the sophisticated markets in Europe & America. To reach an unassailable pole position in the Indian Two Wheeler market. To maintain high standard of ethics & social responsibilities. To meet the quality performances & price aspirations of the customer.
1983 : Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed 1984: Hero Honda Motors Ltd. incorporated 1985 :First motorcycle "CD 100" rolled out 1987:100,000th motorcycle produced 1991: 500,000th motorcycle produced 1992 : Raman Munjal Vidya Mandir inaugurated - 1994 : New motorcycle model - "Splendor" introduced 2000: 4,000,000th motorcycle produced Splendor declared World No. 1 - largest selling single two- wheeler model 2001: One million production in a single year : 5,000,000th motorcycle 10
2003: Becomes the 1st Indian Company to cross the 7 million sales Splendor has emerged as the Worlds largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "Karizma" introduced 2005 : Hero Honda is the World No. 1 for the 4th year in a row Super Splendor , CD Deluxe , Glamour ,Achiever introduced First Scooter model from Hero Honda - "Pleasure" introduced 2006 : Hero Honda is the World No. 1 for the 5th year in a row 11
APPROACHES EXTENT JUSTIFICATION(ORIENTATION) It is having good demand all over India and it is supplying1.Production concept Partially as per the demand in the Applicable market.
2.Product concept Partially In most of the Hero Honda applicable brands, special features like self start, digital speedometer & other things are not included. Ex : Hero Honda CD 100, CD Dawn are not having these features like self start, digital speedometer. By this we can justify that this company is not adopting fully but adopting by partially.3.selling concept Partially The company is adopted this applicable concept partially. Ex : Offers during special occasions.
Hero Honda introduced First stroke bike in the Indian market. Hero Honda bikes gives good mileage. Huge sale network (3500 Dealers). Better sale service. It has the highest share in automobile sector. It has a good brand image. It gives better service for customers.
Suppose to be very sophisticated. They have big gap between cubic capacities of its products. Spare parts are too costly.
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. As government policies are amended against pollution in metro cities, Hero Honda being 4 stroke bike manufactures has great opportunities to explore its new innovations and technologies.
Main threats to Hero Honda are their competitors like Bajaj Auto Ltd. TVS motors Ltd. Yamaha Motors India. Honda motorcycle and scooter India. The cost of the product is very high in comparison to other companies. Decreasing market share.
HERO HONDA SUPER SPLENDOR This Bike comes with 125 cc new generation quantum core engine with an output of 9 bhp (6.7 kw). Its relaxing seating arrangement with other comfort features like less strain while clutching and declutching, low noise and less vibration engine etc, makes it more market friendly bike
For the convenience of the biker: Included trip meter, peep hole, large utility box etc. Some safety features: Included pass switch and push cancel indicator switch, muffler with heat shield etc.
It is found in different colors: Frost Blue Cloud Silver Mono Tone Black Dual Tone Black Blazing Red
HERO HONDA SPLENDER PLUS 4 stroke single cylinder lair-cooled, OHC engine delivers power of 5.5 Kw (7.5PS) @ 8000 rpm . Running with the maximum mileage of 85 kmph, this bike is giving the optimum satisfaction for long journey. Its double cradle frame gives the steadiness in biking. Its wider 1230 mm wheelbase provides the proper base for safer riding.
Lighting fitting included in it like multi reflector with halogen bulb makes the biking secured at every time.
It is found in different colors: Candy Tahitian Blue Hi Performance Red Blue Blaze Metallic Cloud Silver Metallic Chilli Green Hi Granite Blue Tornado Grey Black with Blue Silver Stripe Black Calliper Yellow Black Old Stripe
HERO HONDA NXG New front fairing and a new visor New design fuel tank with knee recesses on either side and features a chrome fuel tank lid. New body panels and sleek body graphics. New instrument panel - trip meter housed in speedometer, fuel gauge. Stylish tail lamp and die - cast alloy grab rail. 160mm of ground clearance.
HERO HONDA KARIZMA Karizma comes with a 223cc single cylinder. air-cooled, four stroke engine that packs a maximum power of 17bhp at 7000rpm. Separately from breaking the 200cc barrier, the bike breaks fresh basis in the speeding up front. Karizma conquers the four-second barrier for zero to sixty kph, doing it 3.8 seconds.
HERO HONDA CBZ XTREME Maximum torque id of 12.80 N-m @ 6500 rpm Self and kick start options Powerful windscreen Maximum power is 10.6 KW @ 8500 rpm Minimum 12.3 liters fuel tank capacity with 1.5 liters as usable reserve
HERO HONDA PASSION PLUS The Passion Plus is prepared with a four-stroke, air-cooled, single cylinder engine.. The Passion Plus slot in a host of new styling features counting two-tone coolers, body colored mirrors, white dial gadget come together.
wider passenger seating grip. New multi-reflector headlight and winkers add to the glamour proportion. The Passion Plus comes with a not obligatory front disc brake for better braking. It attains a reputable utmost speed of 85kph and has a fuel tank capability of 12.8 liters.
HERO HONDA PLEASURE The Pleasure comes with a four- stroke, air-cooled, single cylinder engine that gives a dislocation of 102cc. Pleasure boasts of characteristic features such as an ABS body, axiomatic broadcast and high pulling power.
The Pleasure sports flashy colors and a host of trendy contours to appeal to adolescent girls. Multi-reflector headlight; body-colored mirrors, multi- reflector pointer nestled in the front and a new age oval- shaped tool panel all make the Pleasure a head-turner. The scooter is able of reach a top speed of 77kph.
HERO HONDA CD-DELUXE “Naye Indian ki Nayi Deluxe Bike” HERO HONDA SPLENDOR PLUS “Designed To Excel” HERO HONDA SPLENDOR NXG “Bharosa Bhi Style Bhi” HERO HONDA PASSION PLUS “Whole New World Of Style”
HERO HONDA SUPER SPLENDOR “Generation Nayi Bharosa Wohi” HERO HONDA GLAMOUR “Simply Magnetic” HERO HONDA ACHIE V ER “SOLID, Like You!” HERO HONDA CBZ XTREME “Live Of The Edge!”
HERO HONDA HUNK “NO One Messes With It” HERO HONDA KARIZMA “Jet Set Go. . .” HERO HONDA PLEASURE “Karlo rock ‘n’ roll on the run Why should boys have all the fun?” HERO HONDA CD-DAWN “Public Ka Apna Transport”
S strength Ability to understand customer’s needs and wants Recognized and established brand name Effective advertising capability They have big gap between cubic capacities of its products.Weakness Its market share is reducing from last few years. Bikes are not attractive as compare to there competitors.
Strengths Yamaha motors India is the subsidiary company of Yamaha motors ltd, which is the MNC company having a good brand name. Good share in Indian two wheeler automobiles sector It is the one of the oldest company in the Indian market. Bikes are available at very cheap price. Popular in rural area.
Bikes are not attractive. No presences in scooter segment. No presences in above 150cc bike segment. Decreasing market share Limited network
STRENGTHS Reliable brand name Affordable price Honda have a big share of market in scootreats segment Honda having high tech engines HMSI (Honda Motorcycle and Scooter India Pvt.Ldt) is the subsidiary company of Honda Motors Ltd. Which is the largest company in the proposed sector
Less number of service center Market share very less as compare to there competitor Spares parts are not easily available Low product range Maintenance cost is very high
Strengths Highly experienced management. Product design and development capabilities. Extensive R & D focus. Widespread distribution network. High performance products across all categories. High export to domestic sales ratio. Great financial support network (For financing the automobile) High economies of scale.
Weakness Hasnt employed the excess cash for long. Still has no established brand to match Hero Hondas Splendor in commuter segment. Not a global player in spite of huge volumes. Not a globally recognizable brand (unlike the JV partner Kawasaki
Hero Honda has released robust growth figure for the third quarter of the financial year. Total turnover (Net sales & Other Operating income) for Q3 stands at Rs2881.27 crore reflecting year on year growth of 4.77 per cent, while net profit after tax is Rs300.42 crore showing growth of 9.24 per cent. Hero Honda, which holds 51 per cent market share in the domestic motorcycle market, has shown impressive growth figures for recessionary times. It has crossed the landmark retail sales of more than six lakh two-wheelers in a month in October.
MARKETING MIX PRODUCT PRICE PLACE PROMOTION 4P’S OF HERO HONDA
PRODUCTCD – Dawn, Splendor, Passion,Glamour, CBZ, Karizma etc.
Pricing Strategy JustificationCost based pricing As Hero Honda is manufacturing concern it involve many cost for different activities like raw materials purchasing, manufacturing, distribution etc,. so, to compensate all these above cost the company is adopting cost based pricing and it produces unit wise so they can easily identify manufacturing cost for each unit.Value Based It takes care of its customers through Value based competitive pricing and good service after sales. The Company focuses on providing "Value for Money" through its pricing strategies and
PLACE : All over INDIADistribution channel –Manufacturer Dealer Customer
PROMOTION: T.V. Add. News paper Add. Magazine Add. FM Radio Hoardings etc. Excellent marketing, finance and loan services, an efficient dealer network, tactical promotion comprising of fuel conservation campaigns, mobile workshops, safety driving courses and others, all placed Hero Honda in a league distinct from the conventional.
Factors High Justification /Medium/Lo w Impact Determination of wants & behavior in theCultural customer market. India is exposed to values, MediumFactors humanitarian, people loyalty. All these some Impact extent influences the customer to buy the product. Ex: People believe that they should buy some times festival seasons.
There were many people who bought bikes because of socialSocial Factors High Impact factors like on their parents, friends and relatives opinion. There were few people who bought their bikes for style and status. Besides this to my surprise I found out that in today’s world boys play major role in buying decisions for themselves and for their family also. This also played a greater role in purchasing decision of two wheelers by individuals. Boys who were in age group of 18-25yrs were more interested in features as compared to other factors described.
These factors were varying from person to person. DemographicPersonal High Factors. Sex, Race, Age etc.Factors Impact played major role in buying two wheelers for individual use. Young people in age group of 18-35yrs purchased two wheelers for different various reasons while older people in age group of 35-50yrs purchased just for travelling purpose only.
There were many peoplePsychological Impact High who wanted to purchase two wheelers just because they Factors had sense of love and belonging for bikes. This was found more among Hero Honda user. They are mostly see performance of the bike and services that provided by companies and want their bike to be smooth while driving the bike.
Need Recognition Information Search formation Search Evaluation of Alternatives Purchase DecisionPost Purchase behaviPost Purchase behavior or
The basic need of a vehicle is for transportation.Hero Honda Pleasure, it mainly degised foryoung girls & working or non-working women.They need this vehicle for transportationpurpose. So, this is the need recognition forbuying decision process.
Surprisingly, customers search for information. The major information sources to which customers will turn fall into four groups- Personal - family, friends, neighbors. Commercial - advertisements, web sites, salesperson, dealers, displays. Public - mass media, consumer-rating organizations. Experimental - handling, examining, using product
The customers search for alternative competitive brand information search. For example, the alternative search for Hero Honda Pleasure is its competitive brands like Honda Activa, TVS Pep+, Bajaj Wave. These are alternative search for this product.
In the evaluation stage, the consumer forms preferences among the brands in the choice set. The customer may also form an intention to buy the most preferred brand. In executing a purchase intention, the consumer may make up to five sub decisions: brand, dealer, quantity, timing and finally payment method. After all these the customer will go for purchasing the product (Hero Honda Pleasure).
After the purchase, the customer might experience positive about the product or negative. Post purchase satisfaction is a function and the product’s perceived performance. The performance falls short of expectations, the consumer is disappointed; if it meet expectations, the consumer is satisfied. After satisfying with the product the customer may go for influence to buy the same brand.
After studying about the Hero Honda’s company, we came to know about the companies SWOT, different brands and there features, market share, promotion activities, brand ambassadors, 4P’s of marketing, customers buying behavior and many more. Apart from this in this project we also came to know about the different competitors and their Strengths and Weakness. So, finally we conclude that the two wheeler industry is growing very fast in India and the different companies are coming with new different marketing strategies to sustain their brand in the market.