1. Project on 3c Report C-Company C-Customer C-Competitor Presented by Subha Paul On Hero MotoCorp Ltd.
2. AcknowledgementI owe a great many thanks to a great many people who helped and supported meduring the working of this project. During the working on the project I always faced achallenging and interesting experience.I am very much grateful to one of our faculty members Ms. Rupsha Roy the Guide ofthe project for guiding and correcting various documents of mine with attention andcare. She has taken pain to go through the project and make necessary correction asand when needed.I also extend my heartfelt thanks to my family and well wishers.Thank You.
3. Content1. Introduction of the company 12. C-Company 2 a. Vision 2 b. Mission 2 c. Strategy 2 d. Who is who 3 e. Corporate Governance 3 f. Headquarter and Branches 4 g. Product 5 h. SWOT analysis 63. C-Customer 7 a. Profile of target customer 7 b. Customer relationship activity 74. C-Competitors 8 a. Market share and the business performance 8 b. Comparison with competitors 8
4. Hero MotoCorp Ltd. Introduction:Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the worlds largestmanufacturer of two - wheelers, based in India. The company was a joint venturebetween Indias Hero Group and Honda Motor Company, Japan that began in 1984.During the 1980s, the company introduced motorcycles that were popular in India fortheir fuel economy and low cost. A popular advertising campaign based on the slogan“Fill it - Shut it - Forget it” that emphasized the motorcycles fuel efficiency helped thecompany grow at a double-digit pace since inception. The technology in the bikes ofHero Honda for almost 26 years (1984–2010) has come from the Japanesecounterpart Honda.Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon inHaryana and at Haridwar in Uttarakhand. These plants together are capable of churningout 3 million bikes per year. Hero MotoCorp has a large sales and service network withover 3,000 dealerships and service points across India. Hero Honda has a customerloyalty program since 2000, called the Hero Honda Passport Program.During the current financial year, in view of the separation of the joint venture partners,the Company had started the process of change of name of the Company from HeroHonda Motors Limited to Hero MotoCorp Limited. The new name was approved by themembers of the Company in their Extra-ordinary General Meeting held on June 17,2011. Also, the new Corporate Identity (new Corporate Logo) was adopted by theBoard of Directors of the Company on August 17,2011 for all future practical purposes.The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Underthe joint venture Hero Group could not export to international markets (except SriLanka) and the termination would mean that Hero Group can now export.In 2001, the company achieved the coveted position of being the largest two-wheelermanufacturing company in India and also, the World No.1 two-wheeler company interms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintainthis position till date.
5. C-Company: 1 VisionThe story of Hero Honda began with a simple vision - the vision of a mobile and anempowered India, powered by its bikes. Hero MotoCorp Ltd., companys new identity,reflects its commitment towards providing world class mobility solutions with renewedfocus on expanding companys footprint in the global arena. MissionHero MotoCorps mission is to become a global enterprise fulfilling its customers needsand aspirations for mobility, setting benchmarks in technology, styling and quality sothat it converts its customers into its brand advocates. The company will provide anengaging environment for its people to perform to their true potential. It will continue itsfocus on value creation and enduring relationships with its partners. StrategyHero MotoCorps key strategies are to build a robust product portfolio across categories,explore growth opportunities globally, continuously improve its operational efficiency,aggressively expand its reach to customers, continue to invest in brand buildingactivities and ensure customer and shareholder delight.
6. Who is who 2Founder Director and Chairman : Dr. Brijmohan Lall MunjalManaging Director and CEO : Mr. Pawan MunjalBoard of Directors Name of the person Nature of the OfficeMr. Sunil Kant Munjal Non Executive DirectorMr. Suman Kant Munjal DirectorMr. Paul Edgerley Non Executive DirectorMr. Pradeep Dinodia DirectorGen. (Retd.) V. P. Malik DirectorMr. Analjit Singh DirectorDr. Pritam Singh DirectorMr. M. Damodaran DirectorMr. Ravinath DirectorDr. Anand C.Burman Director Corporate Governance At Hero MotoCorp, it is the firm’s belief that the essence of Corporate Governance liesin the phrase Your Company. It is Your Company because it belongs to you - theshareholders. The Chairman and Directors are Your fiduciaries and trustees. Theirobjective is to take the business forward in such a way that it maximizes Your long-term value. This Company is committed to benchmarking itself with global standards for providinggood Corporate Governance. It has put in place an effective Corporate GovernanceSystem which ensures that the provisions of Clause 49 of the Listing Agreement areduly complied with.
7. The Board has also evolved and adopted a Code of Conduct based on the principles ofGood Corporate Governance and best management practices being followed globally. Headquarter and BranchesCorporate & Registered Office 3Hero MotoCorp Ltd.34, Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110057, India.Tel: +91-11-26142451, 26144121Fax: +91-11-26143321, 26143198Zonal OfficesEast ZoneHero MotoCorp Ltd3F, Neelamber Building, 28B, Shakespeare Sarani, Third Floor, Kolkata - 700017, India.Tel: +91-33-22810926 22810927, 22808922, 22811185Fax: +91-33-22808923Email: email@example.comWest ZoneHero MotoCorp Ltd.15-A, Bhale Estate, Rear Wing, Third Floor, Pune-Mumbai Road,Wakadewali, Pune - 411 003, India.Tel: +91-20-25511577, 25512161, 56012990-91Fax: +91-20-25511266Email: firstname.lastname@example.orgNorth ZoneHero MotoCorp Ltd.F-126, Katwaria Sarai, Opp. Qutab Institutional Area,New Delhi -110016, India.Tel: +91-11-26533981-2, 47619300Fax: +91-11-26533983Email: email@example.comSouth ZoneHero MotoCorp Ltd.No - 294, 2nd Floor, 6th Main, Off 100 ft Road, HAL 2nd Stage,Indira Nagar, Bangalore – 560038, India.
8. Tel: +91-80-25550430, 25584436, 25582436, 25321139Fax: +91-80-25594036Email: firstname.lastname@example.org Product 4 Hero CD-dawn(97.20 CC) Hero Splendor Plus(97.20 CC) Hero Glamour (125 cc) Hero CBZ Xtreme (Self Start) Also in kick mode Hero Hunk (Self Start) Also in kick mode
9. Hero KarizmaSWOT analysis 5 Strengths Weaknesses Ability to understand customer’s R&D is not close to the hero needs and wants. manufacturing plant. Effective advertising capability. Hero recently separated from the It’s after sales activity. joint venture with Honda. Technology. Brand name of Hero itself has no Maintenance cost is low. influence in the automobile industry. Opportunities Threats Global expansion. After separation Honda becomes Expansion of target market ( include the competitor. women). Bajaj motor is already a strong Can export worldwide. competitor. Now they can follow any distribution Petrol price increases.
10. channel and select any vendor for its Pollution norms. components. Aluminum & steel price increases. C-Customer: 6 Profile of target customerHero MotoCorp basically targets the every each and segments of the market. So thereare some products like splendor, CD- dawn (rs40000-50000) they made for lowersegment of the market and glamour, passion, CBZ, karizma (rs above 50000) for theupper segment of the market. And now they are trying to target the young people of themarket.India’s Hero MotoCorp, the world’s largest producer of motorcycles and scooters, hasannounced its intention to expand globally, with plans to sell vehicles on threecontinents and nearly double its unit sales within five years. The company, whose familyshareholders bought out its former partner Honda Motor this year, said it would investabout $1bn to expand internationally in south-east Asia, Africa, and Central and LatinAmerica. Customer Relationship ActivityFor making a better relationship with customer they always use genuine parts in theirproduct. And after selling they have the services and maintenances. Their constantendeavor is to support the companys mandate of providing highest level of customer
11. satisfaction by taking good care of customer’s two-wheeler service and maintenancethrough their vast network of more than 2100 committed dealers and service outletsspread across the country.Apart from that hero motocorp focused on cleanliness and other aesthetics of theservice stations and add such air conditioned waiting area, internet surfing, coffeeshops etc to enhance the in house experience of the customers at those “customertouch point”. To ensure that millions of customers in the rural area are not left waiting foradequate service as it is impossible for the company to introduce service station atevery nook and corner of the country, mobile service stations are regularly arrangedwith prior intimation to public about the rout that the mobile workshop would take whenpassing through that region so that customers can come and get their two wheelersserviced. All these activities are aimed to increase the customer loyalty and thusretaining customers. C-Competitors: 7 Market share and business performanceDuring the year (2010-11) the Company notched 17.44% growth in sales, with volumesof 54,02,444 units compared to 46,00,130 units in 2009-10. In value terms total sales(net of excise duty) increased by 22.13% to Rs. 19,245.03 crores in 2010-11 from Rs.15,758.18 crores in 2009-10. The Company continued to lead the domestic motor cyclemarket with 54.6% market share, others (Bajaj, Yamaha, TVS, Honda etc) are holdingthe rest of the market of 56.4%. Shown in figure 1. Hero motoCorp 54.60% Others 56.40% Market ShareFigure 1 Comparison with competitors
12. 3500000 sales unit April to September 3000000 2011 2500000 sales unit April to September 2000000 2010 1500000 1000000 500000 comparison 0 with competitors in unit sold with previous yearFigure 2Hero MotoCorp: The company has reported sales of 30,73,852 units for the period ofApril to September 2011 up by 21.98% compared to 25,19,973 units during the same 8period last year.Bajaj Auto: The company has sold 19,90,408 units of two wheeler during April toSeptember 2011 period up by 16.27% compared to 17,11,863 units sold during thesame period last year. Combined sales of brand Discover has crossed 5 million markswhich is remarkable for Bajaj Auto.Tvs Motors: The company has sold 11,17,253 units during April 2011 to September2011 period up by 15.06% compared to 9,71,039 units in the same period last year.HMSI: (Honda Motors & Scooter India ltd) The company has sold 9,22,979 units duringthe April 2011 to September 2011 period up by 13.21% compared to 8,15,310 units soldin the same period last year.Yamaha India: During April to September 2011 the company sold 2,31,032 units up by34.10% compared to 1,72,289 units sold in the same period last year.
13. Suzuki Motorcycle: During the April 2011 to September 2011 the companysold 1,68,037 units up by 39.12% compared to 1,20,710 units in the same period lastyear.Mahindra Two Wheelers: During the April to September 2011 period the companyreported sales of 74,254 units up by 4.83% compared to sales of 70,836 units in thesame month last year.So after changing the name from hero Honda to hero motocorp ltd nothing has beenchanged in their market performance, so still they are the market leader. That is shownin figure 2, in the previous page. 9