How to theory apply in to practical of marketing management to hero honda company
HERO HONDA MOTORS LTD ,
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 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.
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)
Products: Motorcycles, Scooters
Revenue: U$ 2.8 billion
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
The 2006 Forbes 200 Most Respected companies list has
Hero Honda Motors ranked at 108.
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.
Vision of the Hero Honda is “to offer the highest
quality at a reasonable price to meet the
customers’ expectations and to exceed them”.
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 ethicsBabasabpatilfreepptmba.com 10/18/2013
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
To meet the quality performances & price aspirations
of the customer.
1983 : Joint Collaboration Agreement with Honda Motor Co. Ltd.
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 twowheeler model
2001: One million production in a single year : 5,000,000th
2003: Becomes the 1st Indian Company to cross the 7 million sales
Splendor has emerged as the World's 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
7. Hero Honda
8. Hero Honda Hunk Transportation
Stylish & new body
9. Hero Honda
Mileage And good
It is having good demand all
over India and it is supplying
as per the demand in the
In most of the Hero Honda
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
The company is adopted this
Ex : Offers during special
Hero Honda introduced First stroke bike in the Indian
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
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
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
This Bike comes with 125 cc
new generation quantum core
engine with an output of 9 bhp
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
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:
Mono Tone Black
Dual Tone Black
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
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
Hi Granite Blue
Black with Blue Silver Stripe
Black Calliper Yellow
Black Old Stripe
HERO HONDA NXG
New front fairing and a new
New design fuel tank with
knee recesses on either side
and features a chrome fuel
New body panels and sleek
New instrument panel - trip
meter housed in speedometer,
Stylish tail lamp and die - cast
alloy grab rail.
160mm of ground clearance.
Candy blazing red
HERO HONDA KARIZMA
Karizma comes with a 223cc
single cylinder. air-cooled, four
stroke engine that packs a
maximum power of 17bhp at
Separately from breaking the
200cc barrier, the bike breaks
fresh basis in the speeding up
Karizma conquers the four-second
barrier for zero to sixty kph, doing
it 3.8 seconds.
HERO HONDA CBZ
Maximum torque id of 12.80
N-m @ 6500 rpm
Self and kick start options
Maximum power is 10.6 KW
@ 8500 rpm
Minimum 12.3 liters fuel tank
capacity with 1.5 liters as
HERO HONDA PASSION PLUS
The Passion Plus is prepared with
a four-stroke, air-cooled, single
The Passion Plus slot in a host of
new styling features counting
two-tone coolers, body colored
mirrors, white dial gadget come
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
HERO HONDA PLEASURE
The Pleasure comes with a four-
stroke, air-cooled, single cylinder
engine that gives a dislocation of
Pleasure boasts of characteristic
features such as an ABS body,
axiomatic broadcast and high
The Pleasure sports flashy colors and a host of trendy
contours to appeal to adolescent girls.
Multi-reflector headlight; body-colored mirrors, multireflector pointer nestled in the front and a new age ovalshaped 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
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”
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
Its market share is reducing from last few years.
Bikes are not attractive as compare to there
Yamaha motors India is the subsidiary company of Yamaha
motors ltd, which is the MNC company having a good
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
Reliable brand name
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
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
High economies of Babasabpatilfreepptmba.com 10/18/2013
Hasn't employed the excess cash for long.
Still has no established brand to match Hero Honda's
Splendor in commuter segment.
Not a global player in spite of huge volumes.
Not a globally recognizable brand (unlike the JV
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.
CHART SHOWING MARKET SHARE OF
4P‟S OF HERO HONDA
CD – Dawn, Splendor, Passion,
Glamour, CBZ, Karizma etc.
Cost 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
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
after sales services.
its pricing strategies and
All over INDIA
Distribution channel –
News paper Add.
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. 10/18/2013
Determination of wants & behavior in the
customer market. India is exposed to values,
humanitarian, people loyalty. All these some
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 social
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 10/18/2013
as compared to other 67
These factors were varying from
person to person. Demographic
Factors. Sex, Race, Age etc.
Impact played major role in buying two
wheelers for individual use.
Young people in age group of
wheelers for different various
reasons while older people in
age group of 35-50yrs purchased
just for travelling purpose only.
Psychologi High Impact
There were many people
who wanted to purchase two
wheelers just because they
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.
Post Purchase behaviPost
The basic need of a vehicle is for transportation.
Hero Honda Pleasure, it mainly degised for young
girls & working or non-working women. They
need this vehicle for transportation purpose. So,
this is the need recognition for buying decision
Surprisingly, customers search for information. The
major information sources to which customers will
turn fall into four groupsPersonal - family, friends, neighbors.
Commercial - advertisements, web sites, salesperson,
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.