1. 1
Analyze
Mr Pawan Munjal, MD and CEO, Hero MotoCorp.
Content Page
ProductPortfolioAnalysis 02
ProductmanagementPractice 03
SegmentationStrategy 04
Target Group 04
Reference 05
Team 02, 2016-2018
Apurv 16PGPM05
Apurva 16PGPM06
Ashish 16PGPM07
Atrayee 16PGPM08
Product Analysis of HeroMotocorp
____________
2. 2
HERO MOTOCORP Ltd. (HMCL)
Hero Motocorp Ltd., formerly Hero Honda, is an
Indian motorcycle (<250cc) and scooter manufacturer based
in New Delhi, India. The company is the largest two wheeler
manufacturer in India. In India, it has a market share of about
46% share in 2-wheeler category. The 2006 Forbes 200 Most
Respected companies list has Hero Honda Motors ranked at
#108. On 31 March 2013, the market capitalization of the
company was 308 billion (US$4.6 billion) [1]
Price range of Heromotocorp ranges from 39500 for Hero
HF Dawn to 105500 for Hero Karizma ZMR. Given
attachment shows an exhaustive price range for Motocorp
products.
HeroMotocorp Bikes
price range.docx
A reference tosellingpatternof Herobikeswithrespectto
modelsandspecificationsisgivenbelow.
Best selling in terms
of bike model.docx
PassionPROTR
HF Deluxe
SplendorPROClassic Xtreme Sports
Glamour
ProgrammedFI
SplendoriSmart
SplendorNXG
SplendorPRO
Product Portfolio Analysis
3. 3
Free service facility:
To be incoherence withorganizationsobjective of providinghighestlevelof customersatisfaction with
state-of-artworkshopsthathaswell laidoutstandards withfullyequippedinfrastructure havingquality
precisioninstruments,pneumatictoolsandateam of highlytrainedservice technicians
Hence,havingtwo-wheelersservedatanauthorizedworkshopensureshigheststandards of service
qualityandreliability.
Planning,assessingand
settinggoals
Developinggoalsinto
actions
Deployingor executingtasks Monitoringand measuring
results
To builda robustproduct
across categories,and
expand itsreachto
customersbyattracting
PassionProMileage,
Average,andFuel
Economyto increase sale.
By offeringamileage of 69
kmpl aimat increasingsale
of thisproductby showing
the attractive mileage
capacity.
It isvery powerful andfuel-
efficientbike initssegment.It
isequippedwith97.2cc engine
capacity,whichgenerates
amazingpower,torque and
made for fuel savingandfor
givingbettermileage to
customersandtry to increase
sale.
Aftera predeterminedperiod
of time, we will take passion
pro users reviews, ask them
to fill the feedback form and
ask the customerswhoall are
not using it but know about
it, to know the progress
made on goals.
Product Management Practice
4. 4
Market segmentation helps company target its appropriate customers and their specific needs and
wants. It has strategized to build undeletable product portfolio, expand its reach to customers,
and invest in brand building and ensure customer and shareholder delight.
50mn+ sales, HeroMotocorp is world’s fastest two-wheeler company to achieve this. [2]
MARKET SEGMENTATION STRATEGY
1. PremiumSegmentStrategy: India’s first Trans Road Bike in 150cc Segment competing
against Unicorn and Pulsar
2. Mass Segmentstrategy: This include mopeds to generate mass riders from Motocorp
3. Low –cost Bike Segmentstrategy: With change in consumer preference Motocorp has
switched from less moped production to stylish and efficient low-cost bike models
SINGLE SEGMENTSTRATEGY: This results in a smaller potential customer base.
DIFFERENTIATED SEGMENTATIONSTRATEGY: Highly priced bikes like Karizma is meant to attract
Young boys looking for fast sporty bikes for Indian roads.
MODELS
STP HMCL
Segment Target Group Positioning
Splendor Middle-class people who want
a bike that is stylish and gives a
good mileage
Middle class youth from the age
bracket of 25-35
A motorcycle for making
friends in life
CBZ Young boys looking for fast
sporty bikes for Indian roads
Young boys in the age 18-30 middle
class
For bikers who want to live life
in the extreme
Passion
Middle-class people who want
a bike that is stylish and gives a
good mileage
Middle class youth from the age
bracket of 25-35
A stylish bike with good
performance
Karizma Young boys looking for fast
sporty bikes for Indian roads
Young boys in the age 18-30 middle
class
For bikers who are always
ready for action
CBR Ultra premium sports bike Upper middle and upper class men Powerful sports bikes
Segmentation Strategy
Target Group
5. 5
We performed a survey of 55 users of passion pro. In order to survey users’ insights from a place
near to residing place we contacted the only Hero dealer in Raghuanthganj-M/s. Golden
Automart. Due to time constraint and to protect customers’ sensitive information (direct contact)
we were refused certain customers contact.
Attempt to extract customers review from web was also done. We selected certain members from
MOUTHSHUT.COM. However, not many turned up.
Team thus started contacting users of passion pro over social sites. We posted forms of survey on
facebook.Com and Google plus thus segmentation was done. Each response was recorded using
google forms and the report analysis is as follows.
Question on customer segmentation
Segmentationbyage helpsunderstand
whichpopulace of the entire masshave
takento Passionproas theirpreference
We have takenthisfieldtounderstandthe
reasonbehindcustomerneed.Whethera
familypersonora bachelorprefersthe
product.
Occupationfieldhelpstowhichportionof
workingpopulace wouldtendtobuythis
product.
Customer Response Analysis
6. 6
Questionson customers’ behavior
Withincrease inthe numberof familythe
frequencyof usage of vehicle increasesin
orderto meeteachmembers’itinerary
activityandto accomplishotherhousehold
activities.Hence withthe knowledgeof
member’sinfamilywe cansee how often
customers wouldlikelyshow interest
towardsthisproduct
Thishelpsunderstandhow customersare
approachingtowardsunderstandingthe
productsspecifications.Thisfieldalsotells
us where canthe informationforproduct
be put to reach more customers
Purpose servesasthe needforthe
product.Once we understandcustomer
needsproductmodificationwouldbe an
easytask.This alsohelpsinimprovisingthe
alreadyavailable specificationsthus
cravingpath towardscustomers’delight
Versioningisusuallydone toattractmore
customersas itofferscustomization
accordingto riders’choice.Thisagainadds
value tocustomerservice.Once the most
usedversionisknowncompanycanwork
more towardsdevelopingthe same thusby
creatingcompetitioninmarket.
7. 7
Question on Customer loyalty
Whethernewlypurchasedoralready anold
customer,distance traveledwouldhelpunderstandwhethercustomersenjoytheirride onbike.More the
distance travelledmore istheirpreference towardsthe product
Customers’loyaltyfactorisveryessential
as thishelpsthe productgrow and
preventsitfromattaining amaturitystate.
More the yearsof usage impliescustomers
wouldlike toretainthe productand its
alliedservices.
Generallyeveryvehicle claimsaparticular
mileage range anditso happensthatwith
usage and time the mileage gradually
reduces.The reduction fromthe claimed
mileage shouldn’tshow muchvariation
otherwise thiswouldbe negativeon
customers’loyaltyfactor
Most of the usershave a satisfactory
feedbackandthatshowsgood customer
loyalty.
8. 8
Questions on Customer perception
It oftenhappensthatcompany’sperception
aboutthe productmay or may notbe in exact
synchwithcustomers’perception. Customer
opinionisimportanttounderstandhowthe
productactuallyisperforminginreal market
space.It’salso helpscompanyremainaway
froma processcalledmarketmyopia.
Pricinga productalso depends onhow
much customersare willingtopay.Itsnot
that the onlydeterminantof price is
customerswill butitacts as a check for
overpricingof the product
An ultimate feedbackaboutproductwhich
coverscustomers’overall opinionis
importantfora productwhichexplains
whetherthe objective behindthe product
issatisfiedornot
It shouldn’tbe consideredascanvassing
your ownproductbut an understanding
that how customersare willingtospread
the product
9. 9
Question on potential competition
A survey in the excel format has been exhibited in the below file
passion pro survey
of 55.csv
CONCLUSION:
HeroMotocorpfrom itsinceptionasHondahas beenextendingitsservicestowardsmakingIndian
commuters’life easy.It’snotjustthe twowheelersbike sectorthatithasattainedbeingthe bestof all
sectors.Throughits constant offeringtowardsautomobilesithas notjustacquiredvaluedpositionin
the marketbut as well the mostlookedoutforbike range.
REFERENCE:
[1] https://en.wikipedia.org/wiki/Hero_MotoCorp
[2]https://www.ijsr.net/archive/v4i10/SUB158925.pdf
http://smallbusiness.chron.com/differentiated-segmentation-strategy-72908.html
http://www.carandbike.com/hero-bikes
http://www.team-bhp.com/forum/motorbikes/175343-march-2016-two-wheeler-sales-figures-
analysis.html
In a perfectlycompetitive market itis
importantto understandhow customers
rate otherproductsof the same range.
AlthoughPassionprohasits own pointsof
differentiatorsitsstill requiredtoknowits
top 5 competitors.Thisprevents company
fromloosingmarketholdandalsoacts as a
growthfactor
![2
HERO MOTOCORP Ltd. (HMCL)
Hero Motocorp Ltd., formerly Hero Honda, is an
Indian motorcycle (<250cc) and scooter manufacturer based
in New Delhi, India. The company is the largest two wheeler
manufacturer in India. In India, it has a market share of about
46% share in 2-wheeler category. The 2006 Forbes 200 Most
Respected companies list has Hero Honda Motors ranked at
#108. On 31 March 2013, the market capitalization of the
company was 308 billion (US$4.6 billion) [1]
Price range of Heromotocorp ranges from 39500 for Hero
HF Dawn to 105500 for Hero Karizma ZMR. Given
attachment shows an exhaustive price range for Motocorp
products.
HeroMotocorp Bikes
price range.docx
A reference tosellingpatternof Herobikeswithrespectto
modelsandspecificationsisgivenbelow.
Best selling in terms
of bike model.docx
PassionPROTR
HF Deluxe
SplendorPROClassic Xtreme Sports
Glamour
ProgrammedFI
SplendoriSmart
SplendorNXG
SplendorPRO
Product Portfolio Analysis](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)