Demerger of HERO & Honda
Big Move – Media Coverage                                                  Financial                                      ...
Market Buzz1766              1752
Project ThemeChallenge the Change
Index History : Hero Group Indian Automobile Market at a Glance Indian Two-wheeler Industry Scenario Difference in app...
History : Hero Group
Hero GroupBrijmohan Lall Munjal was born in 1923 at Kamalia, district Toba Tek Singh (now in Pakistan). He wasfrom a simpl...
Hero Group Companies                                                                                    Hero Global Design...
Indian Automobile Industry
Indian Automobile Market at a glance:                         2nd most populated country                         4th lar...
Reasons for Growth :  Growing working population  Fast paced urbanization  Increasing city limits  Lack of good public...
Indian Two-wheeler Industry
Two wheeler market scenario            <Two- wheeler market volume trend>                                       <Segment w...
Major Players in Indian 2 Wheeler Market:
Indian Two Wheeler Industry Scenario :                                       OTHERS                                       ...
Manufacturer wise Positioning :                             VolumeMore than 1Lac units/month                              ...
Manufacturer wise Positioning :                                 VolumeMore than 1Lac units/month                          ...
Manufacturer wise Contribution :    1%                                                        1%     Market Share         ...
Difference in Approach
Types of Approach   Inactive   Reactive   Active   Proactive
Difference in ApproachHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with ...
Market Scenario in 1984  Bajaj, Enfield, Escorts were present in the market                          &         Bajaj was t...
Hero Honda Positioning
Difference in ApproachHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with ...
Difference in ApproachHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with ...
Hero Honda Positioning          Desh ki Dhadkan (introduction)   2001
Bajaj Positioning                                            2001          Old Bajaj changing to New Bajaj      (Focused y...
Difference in ApproachHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with ...
Honda Positioning                                                 2004                    Honda has arrived   Honda is ado...
Hero Honda Positioning  HHML started Celebrity endorsement & focused on Sports                     (Dhak Dhak Go)
Bajaj Positioning                                                       2007  Bajaj started focusing on Young Bikers & Fun...
Honda Positioning
Hero vs. HondaHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with a JVwith...
Hero Honda “Fill it. Shut it. Forget it.”
Hero vs. HondaHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with a JVwith...
Lesson from Indian Automobile JVs  Kawasaki Bajaj (1986 ~ 2000)  TVS Suzuki (1986 ~ 2000)                                 ...
Difference in ApproachHHML ApproachCelebrity             -          Hrithik, PriyanakaSports                -          Cri...
Hero vs. Honda
Hero vs. Honda                                                        (Hero Group)                                        ...
Hero vs. Honda   (Hero Group)       Hero Cup 1993
Hero vs. Honda                                                    (Honda Group)           Honda R&D (India) Pvt Ltd.      ...
Hero vs. Honda2001       2002         2003        2004              2005              2006               2007             ...
Manufacturer wise Positioning :                              InternationalConservative                                    ...
HERO HONDA ~ SWOT Analysis      •Brand equity/reputation among customers         •New Brand has to be established      •Ag...
Hero Future Approach   •Brand Building   •Market Entering
Company’s Vision & MissionHero HondaVision : The Hero Honda story began with a simple vision – the vision of a mobile and ...
Brand Building Introduction of new Brand Logo & CI Strengthen new Hero Brand Focus on R&D Deep penetration in Indian M...
Introduction of New Logo   Hero should create a new CI first and it should be introduced in phased manner
Strengthen New Hero Brand                                                                       2nd Hand 2-w              ...
Hero Future Approach   •Brand Building   •Foreign Market Approach
Major International Marketing Decisions
Framework for International Marketing                                   Strategy Designing and managing markets           ...
STP                    Segmentation                     Hero      Positioning                  Targeting
Porters 5- Forces                    SubstitutesNew Entrants           Hero       Customer                     Supplier
PESTEL : Strategy
Suggestion
How to enterDegree of involvement                                                                High Involvement, High Co...
Vision for International Markets                  Culturally Close           Organic              Acquisition  Easy       ...
Focus Required 4 A’s                     Awareness         Acceptability                         Customer          Availab...
Learning“If this business were split up, I would give youthe land and bricks and mortar, and I wouldtake the brands and tr...
Thank you
Hero future plan
Hero future plan
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Hero future plan

  1. 1. Demerger of HERO & Honda
  2. 2. Big Move – Media Coverage Financial Express, New 29th April‟11 ( FT, New Delhi) BS, Kolkata (15th Oct‟10) Delhi(24th Dec10) Hindustan Times, New ET, New Delhi Delhi(25th Hindu Business Line, New Delhi (26th Oct10) (2th May‟11) Oct‟10) ET, New Delhi (27th Oct10)Financial Express, New Delhi (24th Sep‟10) Mint, New Delhi (13th May‟11)
  3. 3. Market Buzz1766 1752
  4. 4. Project ThemeChallenge the Change
  5. 5. Index History : Hero Group Indian Automobile Market at a Glance Indian Two-wheeler Industry Scenario Difference in approach (Hero Honda, Honda & Bajaj – Brand Building) Hero vs. Honda (Positioning & SWOT analysis) Hero Approach for Future
  6. 6. History : Hero Group
  7. 7. Hero GroupBrijmohan Lall Munjal was born in 1923 at Kamalia, district Toba Tek Singh (now in Pakistan). He wasfrom a simple middle-class Hindu family. After completing his formal education he worked at the ArmyOrdnance Factory, before moving his base to India after partition.In 1944, when Brijmohan was 20, his family sensed partition, So Brijmohan along with his elder brothersDayanand Munjal, Satyanand Munjal and his younger brother Om Prakash Munjal came to India andsettled in Amritsar. The brothers initially started a business by supplying components to manufacturers ofbicycles in and around Amritsar. After the partition in 1947 the Munjal family completely shifted their base fromPakistan to Ludhiana. Brijmohan Lall MunjalIn 1961, Rockman Cycles Industries was established to manufacture bicycle chains and hubs. Under his leadership HeroCycles was the first company to export bicycles in large scale. In 1975 they had earned the distinction of Largest bicyclemanufactures in India. By 1986 Hero Cycles Limited entered the Guinness Book of Records as the largest manufacturers ofbicycles in the worldThe company is a joint venture between Indias Hero Group and Honda Motor Company, Japan that began in 1984.In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and the„World No.1‟ two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda hasretained that coveted position till date.Hero Honda three manufacturingunits in India, Two of these arebased at Gurgaon andDharuhera which are located inthe state of Haryana in northernIndia. The third and the latestmanufacturing plant is based atHaridwar, in the hill state ofUttrakhand HHML First Plant inauguration, (Gurgaon) HHML‟s First Vehicle hit the road
  8. 8. Hero Group Companies Hero Global DesignMunjal Auto Component Majestic Auto Ltd Hero Cold rolling DivisionHero has excellent presence in two-wheeler, bicycle and auto component manufacturing
  9. 9. Indian Automobile Industry
  10. 10. Indian Automobile Market at a glance:  2nd most populated country  4th largest economy in the world  2nd largest two-wheeler market  4th largest commercial vehicle market  11th largest passenger car market & is expected to become 7th largest by 2016.  India emerged as Asia‟s 4th largest exporter of automobiles, behind Japan, South Korea and Thailand.  By 2050, the country is expected to Top the world in car volumes with approximately 611 Mn. vehicles on the nation‟s roads
  11. 11. Reasons for Growth :  Growing working population  Fast paced urbanization  Increasing city limits  Lack of good public transport  Increased access to credit & lower interest loans  Middle class population is expending by 30Mn every year
  12. 12. Indian Two-wheeler Industry
  13. 13. Two wheeler market scenario <Two- wheeler market volume trend> <Segment wise contribution> Units in Lacs 90 100% 81 80 70 80% 60 60% 50 40 34 40% 81% 30 20 20% 33% 10 0 0% 99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 08Year wise segment wise Industry data Year wise/segment wise Industry data (Mkt share) MC SC ATSC MPD FSC CUB MPD • The Indian two-wheeler market has grown from 3.4 Mn units in 1999 to 8.1 Mn. units in 2008 and crossed by 2010 crosses 10 Mn mark. • The Motorcycle segment is the no.1 segment contributing to approx 80% of total sales.
  14. 14. Major Players in Indian 2 Wheeler Market:
  15. 15. Indian Two Wheeler Industry Scenario : OTHERS 6% ATSC 15% GSC 1% Indian 09年9月移動年 >180MC 1% 2国内市場 wheeler 100-110MC 150-180MC 51% 11% 8,076千台 Industry 125-135MC 15% Entry level segment governs the industry with more than 50% contribution to the industry.
  16. 16. Manufacturer wise Positioning : VolumeMore than 1Lac units/month NetworkLess than 1Lac units/month Approx 70% market is captured by HHML & Bajaj (Indian Manufaturers)
  17. 17. Manufacturer wise Positioning : VolumeMore than 1Lac units/month NetworkLess than 1Lac units/month Honda as a group has more than 60% market share.
  18. 18. Manufacturer wise Contribution : 1% 1% Market Share 1% Market Share 1% 2% (2008-09) HHML 0% (2009-10) HHML 2% 0% 0% Bajaj 2% 0% 2% Bajaj TVS TVS HMSI 13% HMSI 14% Yamaha Yamaha Suzuki 48% Suzuki 48% 14% 15% Enfield Enfield Mahindra Mahindra Othere Othere 19% 17% LML LML CY : LY : •HHML is maintaining its position with 48% •HHML leads the position with 48% Market market share. share •Bajaj has improved its position from 17% •Followed by Bajaj with 17% & TVS by 15% to 19% •There is a slight dip in TVS & HMSI
  19. 19. Difference in Approach
  20. 20. Types of Approach Inactive Reactive Active Proactive
  21. 21. Difference in ApproachHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with a JVwith Hero Group of India and formed a co. called Hero Honda Motors India Ltd. Since its establishment, theCompany is the leader in the segment and currently holds market share of 48%.Kinetic : At the same time, to meet increasing customers demand, Honda Motor Co. Ltd. Japan also did aJV with Kinetic Engineering Ltd. of India to venture into indian scooter market in 1985 but the JV could notgo for a long and in 1998 the JV between the two broke-down.HMSI : In 1999 Indian Gov. Signed Free Trade Policy which made easy to foreign players to venture inIndian market. HM Japan ventured again in India, the company decided to form its 100% subsidiary andformed a co. called Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) which started its businessoperations in India in 2001. Company started its business with an entry in scooter segment thereafterintroduced motorcycle in 2004. Currently company has its presence in each segment with 9 domestic & 3international products and enjoying a market share of 15%.Current Scenario : After completion of 10 years of HMSI in Indian two-wheeler market, Honda Motor Co. Ltd. Japan decidedto brake the JV with Hero Group of India and decided to serve Indian market independently with HMSI. Introduction of Kinetic Honda Introduction of HHML
  22. 22. Market Scenario in 1984 Bajaj, Enfield, Escorts were present in the market & Bajaj was the most preferred brand (“Hamara Bajaj”)
  23. 23. Hero Honda Positioning
  24. 24. Difference in ApproachHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with a JVwith Hero Group of India and formed a co. called Hero Honda Motors India Ltd. Since its establishment, theCompany is the leader in the segment and currently holds market share of 48%.Kinetic : At the same time, to meet increasing customers demand, Honda Motor Co. Ltd. Japan also did aJV with Kinetic Engineering Ltd. of India to venture into indian scooter market in 1985 but the JV could notgo for a long and in 1998 the JV between the two broke-down.HMSI : In 1999 Indian Gov. Signed Free Trade Policy which made easy to foreign players to venture inIndian market. HM Japan ventured again in India, the company decided to form its 100% subsidiary andformed a co. called Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) which started its businessoperations in India in 2001. Company started its business with an entry in scooter segment thereafterintroduced motorcycle in 2004. Currently company has its presence in each segment with 9 domestic & 3international products and enjoying a market share of 15%.Current Scenario : After completion of 10 years of HMSI in Indian two-wheeler market, Honda Motor Co. Ltd. Japan decidedto brake the JV with Hero Group of India and decided to serve Indian market independently with HMSI. Demerger of Kinetic Honda Introduction of Kinetic Honda Introduction of HHML
  25. 25. Difference in ApproachHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with a JVwith Hero Group of India and formed a co. called Hero Honda Motors India Ltd. Since its establishment, theCompany is the leader in the segment and currently holds market share of 48%.Kinetic : At the same time, to meet increasing customers demand, Honda Motor Co. Ltd. Japan also did aJV with Kinetic Engineering Ltd. of India to venture into indian scooter market in 1985 but the JV could notgo for a long and in 1998 the JV between the two broke-down.HMSI : In 1999 Indian Gov. Signed Free Trade Policy which made easy to foreign players to venture inIndian market. HM Japan ventured again in India, the company decided to form its 100% subsidiary andformed a co. called Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) which started its businessoperations in India in 2001. Company started its business with an entry in scooter segment thereafterintroduced motorcycle in 2004. Currently company has its presence in each segment with 9 domestic & 3international products and enjoying a market share of 15%.Current Scenario : After completion of 10 years of HMSI in Indian two-wheeler market, Honda Motor Co. Ltd. Japan decidedto brake the JV with Hero Group of India and decided to serve Indian market independently with HMSI. Introduction of HMSI Demerger of Kinetic Honda Introduction of Introduction Kinetic Honda of HHML
  26. 26. Hero Honda Positioning Desh ki Dhadkan (introduction) 2001
  27. 27. Bajaj Positioning 2001 Old Bajaj changing to New Bajaj (Focused youths & respect Indian Culture)
  28. 28. Difference in ApproachHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with a JVwith Hero Group of India and formed a co. called Hero Honda Motors India Ltd. Since its establishment, theCompany is the leader in the segment and currently holds market share of 48%.Kinetic : At the same time, to meet increasing customers demand, Honda Motor Co. Ltd. Japan also did aJV with Kinetic Engineering Ltd. of India to venture into indian scooter market in 1985 but the JV could notgo for a long and in 1998 the JV between the two broke-down.HMSI : In 1999 Indian Gov. Signed Free Trade Policy which made easy to foreign players to venture inIndian market. HM Japan ventured again in India, the company decided to form its 100% subsidiary andformed a co. called Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) which started its businessoperations in India in 2001. Company started its business with an entry in scooter segment thereafterintroduced motorcycle in 2004. Currently company has its presence in each segment with 9 domestic & 3international products and enjoying a market share of 15%.Current Scenario : After completion of 10 years of HMSI in Indian two-wheeler market, Honda Motor Co. Ltd. Japan decidedto brake the JV with Hero Group of India and decided to serve Indian market independently with HMSI. Honda has arrived Introduction of HMSI Demerger of Kinetic Honda Introduction of Kinetic Honda Introduction of HHML
  29. 29. Honda Positioning 2004 Honda has arrived Honda is adopting Indian Culture & respect their values (Heena Ad)
  30. 30. Hero Honda Positioning HHML started Celebrity endorsement & focused on Sports (Dhak Dhak Go)
  31. 31. Bajaj Positioning 2007 Bajaj started focusing on Young Bikers & Fun Biking Culture (Hami se aage nikal rahe hai hum – Hamara Bajaj)
  32. 32. Honda Positioning
  33. 33. Hero vs. HondaHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with a JVwith Hero Group of India and formed a co. called Hero Honda Motors India Ltd. Since its establishment, theCompany is the leader in the segment and currently holds market share of 48%.Kinetic : At the same time, to meet increasing customers demand, Honda Motor Co. Ltd. Japan also did aJV with Kinetic Engineering Ltd. of India to venture into indian scooter market in 1985 but the JV could notgo for a long and in 1998 the JV between the two broke-down.HMSI : In 1999 Indian Gov. Signed Free Trade Policy which made easy to foreign players to venture inIndian market. HM Japan ventured again in India, the company decided to form its 100% subsidiary andformed a co. called Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) which started its businessoperations in India in 2001. Company started its business with an entry in scooter segment thereafterintroduced motorcycle in 2004. Currently company has its presence in each segment with 9 domestic & 3international products and enjoying a market share of 15%.Current Scenario : After completion of 10 years of HMSI in Indian two-wheeler market, Honda Motor Co. Ltd. Japan decidedto brake the JV with Hero Group of India and decided to serve Indian market independently with HMSI. Honda - 10yrs Honda has Hero Honda – 25yrs arrived Introduction of HMSI Demerger of Kinetic Honda Introduction of Kinetic Honda Introduction of HHML Honda Long Term Planner
  34. 34. Hero Honda “Fill it. Shut it. Forget it.”
  35. 35. Hero vs. HondaHHML : Honda Motor Co. Ltd. Japan entered into Indian two-wheeler industry in the year of 1983 with a JVwith Hero Group of India and formed a co. called Hero Honda Motors India Ltd. Since its establishment, theCompany is the leader in the segment and currently holds market share of 48%.Kinetic : At the same time, to meet increasing customers demand, Honda Motor Co. Ltd. Japan also did aJV with Kinetic Engineering Ltd. of India to venture into indian scooter market in 1985 but the JV could notgo for a long and in 1998 the JV between the two broke-down.HMSI : In 1999 Indian Gov. Signed Free Trade Policy which made easy to foreign players to venture inIndian market. HM Japan ventured again in India, the company decided to form its 100% subsidiary andformed a co. called Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) which started its businessoperations in India in 2001. Company started its business with an entry in scooter segment thereafterintroduced motorcycle in 2004. Currently company has its presence in each segment with 9 domestic & 3international products and enjoying a market share of 15%.Current Scenario : After completion of 10 years of HMSI in Indian two-wheeler market, Honda Motor Co. Ltd. Japan decidedto brake the JV with Hero Group of India and decided to serve Indian market independently with HMSI. Removal of Honda from Hero Demerger of Honda has Hero Honda arrived Introduction of HMSI Demerger of Kinetic Honda Introduction of Kinetic Introduction Honda of HHML
  36. 36. Lesson from Indian Automobile JVs Kawasaki Bajaj (1986 ~ 2000) TVS Suzuki (1986 ~ 2000) Removal of Honda from Hero Demerger of Escort Yamaha (early 80‟s to late 90‟s) Honda has Hero Honda arrived Kinetic Honda ( 1984 ~ 98) Introduction of HMSI LML Piaggio (1984 ~ 99) Demerger of Kinetic Honda Introduction of Kinetic Introduction Honda of HHML Know Your Competition Your Market Your Customer Have breakfast or be breakfast
  37. 37. Difference in ApproachHHML ApproachCelebrity - Hrithik, PriyanakaSports - Cricket, Shooting, Hockey, TennisMusic & Reality - Sa Re Ga Ma Pa & Roadies Focus was on Indian Culture, Tradition & their ValuesKey attribute : Marketing & DistributionHonda ApproachKey attribute : Quality & TechnologyBajaj approachKey attribute : Fun Biking & Youth Centric
  38. 38. Hero vs. Honda
  39. 39. Hero vs. Honda (Hero Group) Hero Global DesignMunjal Auto Component Majestic Auto Ltd Hero Cold rolling Division Hero neither focused on “BRAND” nor diversified their business in other sectors.
  40. 40. Hero vs. Honda (Hero Group) Hero Cup 1993
  41. 41. Hero vs. Honda (Honda Group) Honda R&D (India) Pvt Ltd. Honda Siel Power Products Ltd. 6 Group Companies in India Honda Motorcycle & Honda Siel Cars India Scooter India Pvt. Ltd. Hero Honda Motor Ltd Honda Motor India Honda has over 60% Market Share in Indian two-wheeler Market
  42. 42. Hero vs. Honda2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Color & Graphics Color & Graphics Activa OCT‟ 05 SEP‟ 07 MAR‟09JUL ‟01 Color & Graphics Color & Graphics Color & Graphics Dio OCT‟ 05 OCT‟ 07 OCT‟ 08 SEP‟ 02 Color & Graphics Color & Graphics Eterno NOV‟ 05 SEP‟ 07 Stopped CB Unicorn MAY‟‟03 Color & Graphics Color & Graphics Color & Graphics Unicorn OCT‟05 MAR‟07 APR‟08 OCT‟ 04 MMC/ Cast wheel Color & Graphics Color & Graphics CB Unicorn Dazzler Shine APR. 07 Oct‟08 APR‟ 06 Cast wheel, CB Shine Aviator OCT‟09 JAN „08 May‟09 Every year Honda introduced CBF Stunner a Product & silently strengthened JUNE‟08 PGM-FI Fun Bike its portfolio CB1000R FEB‟ 09 CBR1000RR JAN‟10 CB Twister
  43. 43. Manufacturer wise Positioning : InternationalConservative Modern Indian Hero Honda is yet to make its clear positioning
  44. 44. HERO HONDA ~ SWOT Analysis •Brand equity/reputation among customers •New Brand has to be established •Aggressive Marketing •R&D setup •Strong Distribution Network •Less International Market know how •Deep Penetration in India Market •Too much dependence on few models •Strong Resale Value •Hero is very much dependent on Honda S W •Fast growing sector OT •Establish customer trust with new Hero Brand •Exports market is yet to be properly exploited •Need to have a bigger presence in the executive seg. •Cruiser bike segment is unexplored by HHML •Major bike makers in the world are lining up for India •Most reliable bike manufacturer in India •Low cash reserves •Strong brand follower •Losing a foothold in the exports market •Strong competition from Indian & International Brands
  45. 45. Hero Future Approach •Brand Building •Market Entering
  46. 46. Company’s Vision & MissionHero HondaVision : The Hero Honda story began with a simple vision – the vision of a mobile and anempowered India, powered by Hero Honda. This vision was driven by Hero Honda‟scommitment to customer, quality and excellence, and while doing so, maintaining the higheststandards of ethics and societal responsibilities. Hero Honda believes that the fastest way toturn that dream into a reality is by remaining focused on that vision.Strategy : Hero Honda‟s key strategy has been driven by innovation in every sphere of activity– building a robust product portfolio across categories, exploring new markets, aggressivelyexpanding the network and continuing to invest in brand building activities.HondaPhilosophy : Honda operates on a principle, which is followed worldwide by all Hondacompanies. Maintaining a global viewpoint, we are dedicated to supplying products of the highestquality, yet at a reasonable price for worldwide customer satisfaction. Hondas philosophy isbased on the companys guiding principle and advocates 2 fundamental beliefs:1. Respect for Individual – Initiative, Equality & Trust2. Three Joy – Joy of Buying, Joy of Selling, Joy of CreatingPrinciple : Maintaining a global viewpoint, we are dedicated to supplying products of the highestquality yet at a reasonable price for worldwide customer satisfaction.
  47. 47. Brand Building Introduction of new Brand Logo & CI Strengthen new Hero Brand Focus on R&D Deep penetration in Indian Market Make a Vision for International MarketsFocus on 4As
  48. 48. Introduction of New Logo Hero should create a new CI first and it should be introduced in phased manner
  49. 49. Strengthen New Hero Brand 2nd Hand 2-w (April’12) Co. Owned Outlets (March’12) Auto Expo (Jan’12) Racing in India (Oct’11)New CI & Promotion (July’11)
  50. 50. Hero Future Approach •Brand Building •Foreign Market Approach
  51. 51. Major International Marketing Decisions
  52. 52. Framework for International Marketing Strategy Designing and managing markets Implementing and Managing Marketing Strategy Marketing Situation Analysis Designing Marketing Strategy Framework for Entering Foreign Market Entry Method Firm Capability Exporting Size Licensing Experience in International Business Franchising Contract Manufacturing Industrial Factors Contractual Joint Venture Expansion of industry Equity Joint Venture International characteristics Wholly Owned Technological strengths Publicity advantages Geographic Factors Country risks Cultural differences Strategies for entering foreign Market efficiency market(s) for business Market knowledge Specific – Relevant Factors Asset value Commitment risks Specific strategies Porter‟s competitive strategy theory Low capital cost strategy Strategic Factors Differentiation strategy Strategic motives Focus strategy Allies in international business
  53. 53. STP Segmentation Hero Positioning Targeting
  54. 54. Porters 5- Forces SubstitutesNew Entrants Hero Customer Supplier
  55. 55. PESTEL : Strategy
  56. 56. Suggestion
  57. 57. How to enterDegree of involvement High Involvement, High Cost Equity stake or acquisition Joint Venture Contract Manufacturing Licensing Exporting Low Involvement & Low Cost Cost India should be the first Priority
  58. 58. Vision for International Markets Culturally Close Organic Acquisition Easy Difficult toto enter enter Franchise Joint Venture Culturally Distant Latin America, Africa, Middle East & South East Asia
  59. 59. Focus Required 4 A’s Awareness Acceptability Customer Availability Affordability
  60. 60. Learning“If this business were split up, I would give youthe land and bricks and mortar, and I wouldtake the brands and trade marks, and I wouldfar better than you.” – John Stuart
  61. 61. Thank you
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