The document discusses two-wheeler companies in India and their strategies for marketing in rural areas. It provides details on Hero Honda/Hero Motocorp's extensive rural network covering thousands of villages, its "hub and spoke" distribution system, promotions during local festivals, and partnerships with local cooperatives to provide financing, demonstrating its strong focus on rural markets compared to its competitors. Hero Honda derives around 60% of its revenue from rural areas, higher than the industry average of around 45%.

1. TWO WHEELER COMPANIES
B J V S P VARUN (12PGP012)
DEBOLEENA PANJA (12PGP069)
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2. WHY RURAL INDIA MATTERS
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3. CHALLENGES OF RURAL MARKET IN INDIA
No. 1
• Large population base and number of households
indicates a widely spread out market
• It is a challenge for the marketer to service this
dispersed market.
• Number of the villages is more than Five lakhs and is
not uniform in size.
• Nearly half of the population lives in middle sized
villages which have a population ranging from 1000 to
5000 persons.
• These types of distribution of population warrants
appropriate distribution and promotion strategies to
decide the extent of coverage of rural market.
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4. CHALLENGES OF RURAL MARKET IN INDIA
No. 2
•
•
•
•
•
The rural per capita income is low as compared to urban area.
Low per capita income leads to low purchasing power.
The distribution of income is highly skewed.
Rural market presents a highly heterogeneous scene.
Therefore few challenges arise in this respect:
– Off-taking of any product by rural consumer
– Maintaining of inventory levels
– Distribution system options
– Frequency of distribution.
• This aspect should be carefully considered by the marketers.
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5. CHALLENGES OF RURAL MARKET IN INDIA
No. 3
• There are lacks of proper physical
communication facilities in rural areas.
• Nearly half of the villages in the country do
not have all-weather roads.
• Reaching these villages is very physically
taxing.
• Distribution efforts put up by the marketers
prove to be expensive and ineffective.
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6. CHALLENGES OF RURAL MARKET IN INDIA
No. 4
• Are characterized by underdeveloped people and
consequently underdeveloped market.
• A vast majority of rural people is not financially stable
and is tradition-bound, fatalistic, mired in age-old
customs, traditions, habits, taboos, and practices.
• Unfortunately, the impact of agricultural technology
has not been felt uniformly throughout the country.
• The large segments of rural population have remained
untouched by technological breakthroughs.
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7. CHALLENGES OF RURAL MARKET IN INDIA
No. 5
• There are vast variations in the levels of literacy
amongst rural people.
• Around two-fifth of the rural population is
illiterate and only one-fifth holds a matriculate or
higher degree.
• Literacy levels vary hugely among different states.
• These variations pose a challenge to easy and
clear comprehension of the message by all sets of
rural audience.
• The limited reach of mass media in rural areas
and its regional and state variations pose
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8. TWO WHEELER MARKET
•
•
•
•
Sales of ₹ 620 billion in the year 201213
Volume of 15.7 million units
CAGR of 14.3%
Divided into three segments - motorcycles, scooters and mopeds.
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9. ESTIMATED ANNUAL SIZE OF RURAL
MARKET
FMCG
Durables
Rs. 65,000 Cr
Agro-Inputs
Rs. 55,000 Cr
Two-Four Wheelers
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Rs. 75,000 Cr
Rs. 10,000 Cr
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10. SALES VOLUME IN TWO WHEELER MARKET
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11. STATE OF AUTOMOBILE SECTOR IN RURAL INDIA
• The rural market contributes approximately
45% of the total industry demand
• Only 10% of the households own a twowheeler in the rural areas
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12. AUTOMOBILE- SHARE OF RURAL MARKET
AS A % OF OVERALL MARKET
Scooters
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Motorcycles
Cars/Jeeps
The rural market
contributes
approximately 45%
of the total industry
demand
Only 10% of the
households own a
two-wheeler in the
rural areas
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13. TWO WHEELER- PLAYER WISE DOMESTIC
SHARE
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14. DEMOGRAPHIC TRENDS
The growth in two-wheeler demand would be
aided by:
• rapid increase in the number of addressable
households in the rural market
• higher penetration levels in urban markets.
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15. DEMOGRAPHIC TRENDS
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16. FACTORS AFFECTING RURAL INCOME
• Value of crop output: direct measure of farm
income
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17. FACTORS AFFECTING RURAL INCOME
• Agricultural credit: indirect measure
influencing purchasing power
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18. FACTORS AFFECTING RURAL INCOME
• Government initiatives:
– Loan Waiver
– MGNREGA
– Expenditure on rural development
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19. POWER OF A RURAL CUSTOMER
• A sugar co-operative in Maharashtra's
Kolhapur district
• Asked Hero, TVS and Kinetic to stage a
competitive demonstration
• So that they could order 400 mopeds
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20. HISTORY- 1980s
• Luna TFR : Shaan se bolo “Chal Meri Luna”
• TVS 50 XL : the first entry two-seater moped
• The uses:
– Farmer taking his family to nearby town.
– Farmer carrying two sacks of paddy
– Dhobi carrying a massive bundle of clothes
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21. HISTORY- 1980s
• Hero : India’s leading brand of cycles,
launched Hero Puch in 1989
•
Target: Orthodox breadwinner who
wanted a convenient, fuel efficient, lowpriced vehicle
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22. HISTORY- 1990s
• Bajaj : 1st to come out with a scooterette Sunny
• TVS: brought out Scooty
• Hero - Puch
– Urban: Turbo sport in flashy colors, style (roped in
the teeny-boppers craze Amir Khan)
– Rural: additional gear into higher-end-models
– Semi-rural: Hero Puch Shakti with more power
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24. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE HERO HONDA
• "We pioneered India's motorcycle industry,
and it's our responsibility now to take the
industry to the next level. We'll do all it takes
to reach there.''
- Brijmohan Lal Munjal,
Chairman, Hero Honda Motors
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25. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE HERO HONDA
• Incorporated as Hero
Honda Motors Ltd in
1984
• JV between Hero
Group and Honda
Motor Company
(HMC) of Japan.
• The world's largest
manufacturer of twowheelers since 2001
• Ended the JV in 2010.
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26. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE HERO HONDA
• Leading manufacturer of motorcycles and
scooters in India.
• Derives around 60% of its revenue from rural
areas as compared to approximately 45% for the
industry as a whole.
• Derives approximately 10% of its total sales from
credit sales as compared to approximately 50%
for its peers.
• HHML’s relatively lesser dependence on credit
sales in the environment of credit crunch
provides it an edge over other domestic players.
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27. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE HERO MOTOCORP
• Hero Motocorp Ltd. is an Indian motorcycle
and scooter manufacturer based in New Delhi, India.
• hero Honda started in 1984 as a joint venture
between Hero Cycles of India and Honda of Japan.
• The company is the largest two wheeler manufacturer in
India.
• The 2006 Forbes 200 Most Respected companies list has
Hero Honda Motors ranked at #108.
• In 2010, when Honda decided to move out of the joint
venture, Hero Group bought the shares held by Honda.
• Subsequently, in August 2011 the company was renamed
Hero MotoCorp with a new corporate identity.
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28. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE HMSI
• Honda Motorcycle and Scooter India, Private Limited is the wholly
owned Indian subsidiary of Honda Motor Company Limited, Japan.
• Founded in 1999, it was the 4th Honda automotive venture in India,
after Hero Honda, Kinetic Honda Motor Ltd & Honda Siel Cars India.
• The HMSI factory is built on a plot of 52 acres (210,000 m2) at
Manesar, Gurgaon district of Haryana.
• The initial production capacity was 100,000 scooters per year, which
is currently 600,000 scooters.
• The motorcycle production capacity is 1,000,000 per annum.
• The initial investment was Rs. 215 crores and has now grown to 800
crores.
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29. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
WHY TWO WHEELERS?
• Two–wheelers are a dominant segment of India
because
– India on an average sells approximately seven million
motorcycles and scooters every year compared to
about 1.5 million passenger vehicles
– making it the second biggest two-wheeler market in
the world,behind China.
– According to the latest estimates, only 23% of urban
households and less than 10% of rural households
own a two wheeler.
– These penetration levels are only a fraction of the
levels in other developing South east Asian Countries.
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30. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
DEFINITION OF RURAL
• P. S. Sunder, who heads marketing at Hero
Honda defines:
– "Rural is defined by the character of the territory.
Loosely, we term 400 towns beyond top 50 as
rural."
• Around 7.5 million two-wheelers were sold in
the country in 2005 and, according to Sunder,
35 per cent of these were sold in 'rural
markets'
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31. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
WHAT IS HH DOING THAT THE
COMPETITION ISN'T?
• Penetration in urban areas is 25 per cent, it is
only 10 per cent in rural areas
• 'Har Gaon, Har Aangan' was launched to
generate sales in rural and semi-urban areas.
• Result of aggressive focus on the semi-urban
and rural markets.
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32. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
IN RURAL INDIA
• Began its operations in 1984
• In late 2007, Hero Honda started putting
emphasis on the rural markets
• In December 2007, the company started a
separate 'rural vertical‘
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33. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
IN RURAL INDIA
• Started sales, servicing, and spare part outlets in
several small towns and villages across the
country
• Recruited local people as sales executives and
trained them to market its products to rural
consumers
• In the fiscal year 2008-09, the sales of Hero
Honda from the rural market amounted to 40
percent of the total sales compared to 35 percent
during the fiscal year 2007-08
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34. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
IN RURAL INDIA
• 60 percent of its sales come from rural
markets
• Good performance of its mainstays, Splendor
and Passion has helped it record sales of
nearly 30 lakhs in first 10 months of FY09
• Increasing touch points in tier 2 and tier 3
cities from present 3000 to 3500 (Feb 16,
2009)
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35. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL THRUST
• RURAL NETWORK
– During the financial year 2007-2008, the rural
network of Hero Honda covered 18,000 of the
targeted 23,360 villages with a population of more
than 5,000 across India
– The company also announced its plan to cover
100,000 villages of the total 600,000 villages in
India by the end of the financial year 2008-09
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36. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL THRUST
• DISTRIBUTION
– Hero Honda followed a "Hub and Spoke System"
in distributing its products in rural areas
– The company gave a dealership to one dealer who
would take care of a district.
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37. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL THRUST
• PROMOTION
– Hero Honda promoted its products aggressively
– during festive seasons in different regions of India
– As sales during festive season was generally higher
compared to the rest of the year
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38. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL THRUST
• RETAIL FINANCE
– The growth of the Indian two-wheeler industry
was highly dependent on the availability of retail
finance
– According to analysts, lack of financing could
result in a decline in sales
– Opened up new options of Retail Finance in Rural
India
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39. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL INITIATIVES
• Tying up with new dealers in rural areas
• Bringing in local co-operatives to provide
finance
• Company plans to cover 100,000 of the
600,000 villages by the end of this financial
year under the program ‘Har Gaon Har
Aangan’
• Region specific modules to tap consumers at a
very local level
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40. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL INITIATIVES
• Festivals such as Pongal and Onam in the South,
Gudi Padwa in Maharashtra, Durga puja in the
east, Dhanteras and Diwali in the North are being
leveraged
• The company has employed over 500 specially
trained rural sales executives at the dealership
level.
• Under their rural vertical their dealers meet
sarpanches, headmasters, aanganwadi workers
and other opinion makers to understand the rural
consumer better
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41. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL INITIATIVES
• A total of 18000 villages have already been
covered out of the targeted 23360 villages with
population over 5000
• 100,000 opinion leaders have been approached
• Village haats and mandis are being targeted to
reach consumers
• Penetration into affluent but underpenetrated
rural towns through specialized ‘Rural
Dealerships’; thirteen such dealerships have
become operational
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42. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL INITIATIVES
• In addition to these, around 3750 rural outlets
have been created in towns with population
below 25000.
• These are serviced by the dealer network
• Training sons and daughters of village VIP’s who
are opinion makers and thought leaders of their
villages
• Trying to involve rural self help groups through its
financial subsidiary BAFL to promote credit.
• It had also launched a special variant for the rural
markets – Discover 112cc priced at Rs.39000.
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43. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
4 As OF HERO
Availability
• Hero has 4 manufacturing plant
• extensive sales and service
• follow a "Hub and Spoke System“
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44. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
4 As OF HERO
Affordability
• Hero Honda offer cheapest motorcycles
• Hero Honda with the help of tie ups with
banks provides loan
• Special event pricing by Hero
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45. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
4 As OF HERO
Awareness
• Hero Honda Motors Ltd was the top advertiser
• Five hundred sales representatives were taken on
board for the mission Har Gaon, Har Aangan
• Hero Honda also organizes free service camps
every year.
• Hero Honda also takes part in trade fair, haats,
melas etc.
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46. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
4 As OF HERO
Acceptability
• strong brand image and product quality.
• considered to be most fuel-efficient bike on
Indian roads.
• purchased more by daily users who needs
more average of bikes as well as look.
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47. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
• Set up a separate rural
vertical in 2007
• Identified fuel efficiency
and smaller engine sizes
would be the governing
characteristics in this
market
• Biannual studies of “Usage
and attitude”
• Rural footprint studies on a
quarterly basis to chart
different events taking place
in villages for increased
sales push
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48. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
BIKES FOR RURAL
•
•
•
•
•
CD 100
CD dawn
Splendor
Passion
CBZ Extreme
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49. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
BIKES FOR RURAL
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50. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
BIKES FOR RURAL
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51. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• seeks to build an ongoing relationship with millions of
households in rural India as penetration is only 8%
• 500 sales representatives were initially hired and given
work tasks rather than sales targets
• No direct sales outcome
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52. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• Plan to cover 100,000 of the 600,000 villages.
• aims to ensure that the purchase and service
of two wheelers in India is affordable and
convenient.
• organise free bike check-up camps, loan
melas, OLCP, test ride camps, conducting Ride
Safe Programmes to educate customers on
Safety and Maintenance
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53. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• Collecting a lot of data at rural touch points
• many of our dealers are now meeting
sarpanches, headmasters, aanganwadi workers
and other opinion makers to understand the rural
consumer better.
• Strengthened its distribution network
considerably
• The number of touch points (dealerships plus
sales and service outlets) is already 3,000 and
another 500 would be added.
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54. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• Dealer inventories are down to 15-day levels
against the annual average of 20 days for Hero
Honda.
• Purchases have also seen an increase in the
cash versus financed buying from 60:40 earlier
to 70:30 now.
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RAIPUR
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55. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• As most of its consumers are rural villagers
who depend on loan to buy a 2 wheeler
• Plans to cover 100,000 of the 600,000 villages
in the country by the end of this financial year
under a campaign named Har Gaon, Har
Aangan (every village, every household).
• Hero Honda has 3000 dealers and service
outlets in India
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INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
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56. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• RATIONALE
– The two-wheeler penetration in the urban market is
25 per cent, while it is only 10 per cent in the villages,
where 70 per cent of India lives.
• Rural elders have been roped in to communicate
message to prospective customers
• In villages, the opinions of people such as village
panchayat heads and teachers are taken
seriously.
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57. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• First Leg: Usage & Attitude studies,
– Conducted by the company’s in-house research
team once in every two years
– Study captures every aspect of the potential
customers’ lives
– Tracks aspects like the level of awareness of brand
Hero Honda, the current modes of transportation,
what is the expectation of the customer from
motorcycles etc
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RAIPUR
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58. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• Second Leg: Rural Footprint studies
– Quarterly basis
– Chart events that will take place in villages
– Core idea is to take the brand to the customer
when he is in a happy mood
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RAIPUR
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59. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• Third Leg
– Ensure that the village customer doesn’t postpone
buying a two wheeler just because there’s no cash in
hand
– Entered into numerous vehicle finance tieups with
NBFCs, cooperative banks and regional rural banks
– Such 30 tie ups
• Fourth Leg
– Ongoing Activation
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60. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• The company rolled out its on-ground activation for
the rural customers
• has doubled its touch-points in rural areas from
2,000 in 2006 to nearly 4,000.
• They appointed 500 rural sales executives who are
busy in meeting the sarpanch, the headmaster and
the anganwadi workers in villages all over the
country.
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61. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• They are also visiting potential customers at their
homes, inviting them to drop in at the company’s
dealerships which might be located a few kms away.
• The frequency of their visits increases in the days of
Dussehra and Diwali and other celebrations of the
village.
• These festivals account for almost a fifth of the total
annual sales of the country’s largest two-wheeler
maker.
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RAIPUR
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62. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• Usage & Attitude studies are conducted by the
company’s in-house research team once in every two
years.
• The study captures every aspect of the potential
customers’ lives.
• It tracks aspects like the level of awareness of brand
Hero Honda, the current modes of transportation,
what is the expectation of the customer from
motorcycles etc.
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INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
62

63. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• The company is also doing Rural Footprint studies
on a quarterly basis.
• Under this, they chart the events that will take
place in villages.
• The core idea is to take the brand to the
customer when he is in a happy mood. And these
happy times are linked to good harvests, festivals
and marriages when there is cash in hand.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
63

64. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• To ensure that the village customer doesn’t
postpone buying a two wheeler just because
there’s no cash in hand
• Hero Honda has entered into numerous
vehicle finance tie-ups with NBFCs,
cooperative banks and regional rural banks.
• They have 30 such tie ups.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
64

65. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• IMPLEMENTATION
• The other cornerstone of Hero Honda’s
success with its Har Gaon, Har Angan
campaign is the choice of media vehicles.
• The company banks on good old Doordarshan
for this.
• DD’s reach in the rural areas is a good enough
bet to reach the target customer.
• It has invested heavily in cricket on DD.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
65

66. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• MEDIA
• Banks on good old Doordarshan for this
• DD’s reach in the rural areas is a good enough
bet to reach the target customer
• Invest heavily in cricket on DD
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
66

67. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• ROAD AHEAD
• Hero Honda increased its production capacity at
its Haridwar manufacturing plant from 2,000
units per day to 3,000 units per day in January
2009
• Took advantage of the tax benefits offered by the
government to companies for establishing
manufacturing plants in hill states like
Uttarakhand
• In short , Tremendous growth prospects in future
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
67

68. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• REASON FOR MOU
• Banks and NBFCs are still reluctant to lend
loans for 2 wheelers because of the high rate
of loan defaults.
• SBI, which has close to 6505 rural and semiurban branches, does not have the reach to
service the motorcycle loans and also setting
up branches to service few potential
customers in villages does not make sense.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
68

69. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• MOUs
• Fullerton India (NBFC non-banking financial
company)
• Hero Honda and Andhra Bank
• The tie-up is particularly aimed at those in the
farm sector, salaried employees and
institutional customers.
• Buyers can avail themselves of loan up to 90
per cent on the road price.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
69

70. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HAR GAON HAR AANGAN
• unique initiative of the
‘Har Gaon Har Aangan’
programme was
‘Khushiyan Har Angan’.
• Delivered a special
message from Hero
MotoCorp and
distributed branded box
of sweets with diyas
during Diwali
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
70

71. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
OTHER HERO HONDA INITIATIVES
• Sponsoring Women’s Asia Cup Hockey
Tournament.
• Miss World India Regent
• Constructing roads in villages.
• World Cup Cricket Tournament
• Durand Cup Football
• Army Officers’ Rally
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
71

72. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
DEALERS AND SERVICE CENTERS
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
72

73. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
DEALERS AND SERVICE CENTERS
•In the last 18 months, its 360 dealers all over the
country have reported the emergence of an unofficial
channel of distribution
•Village mechanics, local real estate agents,
shopkeepers who sell non-durables and so on.
•These people are taking motorcycles from the official
dealers - usually in 2s and 3s -- displaying them outside
their premises and closing a sale.
•The paperwork, though, is left to the dealer to
complete.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
73

74. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SALES CAMP AT AGRI MILLS
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
74

75. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SALES CAMP AT AGRI MILLS
•A Hero Honda dealer who regularly puts up stalls at
agri-mills to target farmers.
•He also puts up stalls outside factories and electricity
boards, keeping in mind the product and the profile of
the farmer/worker.
•According to the dealer, setting up such a stall costs
him around Rs 1,000
•He is able to target 1,000 high-potential consumers.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
75

76. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SARAL FINANCE
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
76

77. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SARAL FINANCE
• made it easier for rural Indians to own their
favourite two wheelers through a tie-up banks.
• This ensured best rates, easy documentation and
hassle-free processes.
• Shwet-Labh, a specially designed loan package for
Milk Cooperative members.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
77

78. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SERVICE HAR JAGAH
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
78

79. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SERVICE HAR JAGAH
• Camps in villages- on the same specified day
every month
• Enables customers to service in their villages
rather than travelling.
• 600 rural support executives
• 1,100 Customised bikes to cover more than
7,500 villages a month
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
79

80. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
DHADKANON KI RALLY
• Partnered CWG Delhi,2010.
• Lined up nation wide baton bearers to provide
common man with a chance to participate in
the Queen’s baton Relay.
• Saw participation in close to 22,000 villages
across the country.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
80

81. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
NAYE INDIAN KI KHOJ
• Activation programme to identify a Naya
indian in each district
• Significant contribution in the fields of
education, women empowerment, social and
health
• Added sheen to the brand
• Received almost 20,000 nominations
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
81

82. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
FREE CHECK-UPS
• Organizing free vehicle servicing and medical
camps
• In over 100,000 villages around the country
• To bolster its presence and attract new
customers
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
82

83. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
FESTIVE SEASON (2013)
• Has the highest exposure to rural markets (45-48
per cent of sales) among two-wheeler makers
• has lined up about 12 models to be launched
over 18 months.
• This should help it gain volume traction from the
festive season and consolidate its position.
• able to regain market share, from 40 per cent in
the September quarter last year to 44 per cent at
the end of the June quarter.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
83

84. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
AUTHORISED REPRESENTATIVES
OF DEALERS
– A new layer added to distribution network
– similar to hub and spoke model.
• Within a district, the company’s main liaison is
located in the district headquarters.
• Under him are “authorized representatives”—
smaller dealerships where locals can make
purchases and also get their bikes serviced.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
84

85. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
AUTHORISED REPRESENTATIVES
OF DEALERS
• These ARDs are appointed and managed by the
dealers through a profit-sharing mechanism.
• no additional investments in the supply chain
from its side.
• ramped up its touch points increasing its
network of showrooms and service centers to
around 4,000.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
85

86. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CBZ EXTREME ACTIVATION
PROGRAMME
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
86

87. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CBZ EXTREME ACTIVATION
PROGRAMME
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
87

88. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
HUNK ACTIVATION PROGRAMME
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
88

89. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SPLENDOR ACTIVATION PROGRAMME
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
89

90. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SPLENDOR ACTIVATION PROGRAMME
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
90

91. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CSR ACTIVITIES IN RURAL INDIA
• Dharuhera, Haryana
– Integrated Rural Development Centre has been
set up on 40 acres of land along the Delhi-Jaipur
Highway
• Includes
– Installation of deep bore hand pumps to provide
clean drinking water.
– Constructing metalled roads
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
91

92. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CSR ACTIVITIES IN RURAL INDIA
• Includes
– Renovating primary school buildings and
providing hygienic water and toilet facilities.
– Ensuring a proper drainage system at each of
these villages to prevent water-logging.
– Promoting non-conventional sources of energy
by providing a 50 per cent subsidy on biogas
plants.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
92

93. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CSR- RAMAN MUNJAL VIDYA
MANDIR
• began with three classes (up to class II)
and 55 students
• grown into a modern Senior Secondary
–CBSE affiliated
–co-educational school
–with over 1200 students
– and 61 teachers
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
93

94. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CSR- RAMAN MUNJAL VIDYA
MANDIR
• The school has
–a spacious playground
–an ultra-modern laboratory
–a well-equipped audio visual room
–an activity room
–a well-stocked library
–a computer centre
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
94

95. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CSR- RAMAN MUNJAL MEMORIAL
HOSPITAL
• Multi-specialty hospital equipped with the
latest diagnostic and surgical technology
• provides healthcare to the rural population
in and around Dharuhera
• Also caters to accident and trauma victims
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
95

96. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CSR- RAMAN MUNJAL SPORTS
COMPLEX
• has basketball courts, volleyball courts, and
hockey and football grounds are used by the
local villagers.
• in the near future, sports academies are
planned for volley ball and basket ball, in
collaboration with National Sports Authority
of India
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
96

97. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
CSR- VOCATIONAL TRAINING
CENTRE
• 26 batches comprising of nearly 625 women
have been trained in tailoring, embroidery
and knitting
• The Company has helped women trained at
this centre to set up a production unit to
stitch uniforms for Hero Honda employees.
• Interestingly, most of the women are now
self-employed.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
97

98. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
100-CC BIKES FOR RURAL PUSH IN
INDIA
• Betting on the small capacity 100-cc economy
bikes as it embarks upon a rural push in the
world's second biggest two-wheeler market.
• Likely to bring in a new improved engine with
fresh design cues to attract young and rural
India.
• Has started ramping up its dealer network and
approached existing dealers in metros to open
units in rural markets.
• It will add 300 sales outlets under 100 dealers
this year to its existing 1,200 outlets.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
98

99. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
‘GO RURAL’ CAMPAIGN
• Overtake former partner Hero MotoCorp and
Bajaj Auto in India.
• Has set up a core team to identify villages
and remote areas where Hero has an
enormous presence.
• HMSI has launched a new brand campaign
with new brand ambassador Akshay Kumar.
• Company adopting its global tagline - Power
of Dreams.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
99

100. 11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
100

101. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
• Bajaj Auto Limited is an Indian two-wheeler
and three-wheeler manufacturing company.
• Bajaj Auto manufactures and
sells motorcycles, scooters andauto
rickshaws.
• Bajaj Auto is a part of the Bajaj Group.
• It was founded by Jamnalal
Bajaj in Rajasthan in the 1930s.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
101

102. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
• Three manufacturing plants.
• It is based in Pune, Mumbai, with plants
in Chakan (Pune), Waluj (near Aurangabad)
and Pantnagar in Uttarakhand.
• 1986, change from scooter manufacturer to
two wheeler manufacturer.
• The oldest plant at Akurdi (Pune) now
houses the R&D centre 'Ahead'.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
102

103. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
• Third-largest player in the domestic twowheelers industry.
• Largest Indian exporter of two and threewheelers.
• On 31 March 2013, its market capitalisation was
INR 520 billion, making it India's 23rd largest
publicly traded company by market value.
• The Forbes Global 2000 list for the year 2012
ranked Bajaj Auto at 1,416.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
103

104. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ESTIMATED MARKET SHARE IN SUB
SEGMENTS
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
104

105. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
PLATINA
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
105

106. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
DISCOVER
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
106

107. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
PULSAR
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
107

108. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
• third-largest player in the domestic twowheelers industry.
• largest Indian exporter of two and threewheelers.
• The Forbes Global 2000 list for the year 2012
ranked Bajaj Auto at 1,416.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
108

109. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
BAJAJ BOXER
• The company added, Boxer
150 cc which is dubbed as
'Tank on Two Wheels' in
August, 2011 targeting the
rural market.
• Bajaj discontinued the boxer
100cc and 125cc variety
since the rural market has
been experiencing the
change as reflected in the
pattern of sales
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
109

110. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL STRATEGY
• Bajaj Auto introduced seasonal collection
strategy for rural areas.
• This would mean that instead of monthly
installments , rural customers can time their
loan repayment to crop cycle, which is 2-3
months for rice and wheat.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
110

111. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL STRATEGY
• Rural Dealership
• First of which has been opened at Niphad,
near Nashik, 2005
• In the year they planned to increase it to 20
and 50 by the end of 3 years.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
111

112. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
BAJAJ KISAN CHAKRA
• MoU Between Andhra Bank and Bajaj Auto
• Interest rate for farmers: 9.75%
• Free 2 lakh personal accident insurance policy
by both parties
• 5% discount on spare parts.
• 10% discount on paid labour
• Five-year repayment tenure with a flexibility
to pay once in half-year will be provided.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
112

113. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
LIST OF SOME OF BANKS OFFERING TWO
WHEELER LOANS
•
•
•
•
ICICI Bank - Deals on Two Wheeler Loans
Bank of Baroda - Baroda Two Wheeler Loan
HDFC Bank - FastTrack Schemes
State Bank of India - Scheme For Loan For Two
Wheelers
• Bank of India - Star Autofin Scheme
• Andhra Bank - Quantum of Finance For Two
Wheelers
• Union Bank of India - Union Miles
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
113

114. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
DEALERSHIPS AND CHEQUELESS LOAN SCHEME
• Special finance scheme from its Bajaj Auto
Finance
• The rural customer could buy Bajaj two-wheeler
without having a bank account.
• New dealerships will operate from March end
and six out of its every 10 new dealerships are in
semi-urban areas like Hingoli of Maharashtra
• The result was that Bajaj was able to improve its
market share to more than 30% while its share
was 27%.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
114

115. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
DIWALI PLANNING (2013)
• Better-than-average monsoon is likely to encourage the
rural demand for auto companies.
• Rural incomes are anticipated to rise on account of better
yields and higher minimum support prices for agri-produce
due to elections.
• Has strong presence in the rural area and nearly half of the
two-wheelers are bought by rural consumers.
• We expect low penetration level, lack of adequate mode of
public transport and rising per capita income in rural India
would lead to long-term healthy demand for two-wheelers.
• BAL is betting on Discover launches, upcoming festive
season, good monsoons and opening of new permits for
three wheelers to revive its market share.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
115

116. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL ACTIVATION PROGRAMS
• Conduct Skits
• Contact Opinion leaders
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
116

117. 11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
117

118. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
•
•
•
•
Lohia Machineries Limited
Tie up with Piaggio of Italy in 1984
Direct competition with Bajaj Chetak
Launch of LML Select in 1993
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
118

119. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
LML SELECT
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
119

120. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
LML STAR
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
120

121. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
LML STAR
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
121

122. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
• By 1998, LML was the second largest scooter
manufacturer in India with a market share of
over 28 %.
• LML was not able to upgrade the scooters since
the JV with Piaggio was called off in 1999
• Entered the motorcycle segment in 2003 with
LML Freedom.
• LML could not emulate the success of TVS in
launching indigenous technology and surviving
the aftermath of a failed technical collaboration
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
122

123. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
LML FREEDOM
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
123

124. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
LML ADRENO
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
124

125. 11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
125

126. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
• TVS Motor Company Limited is a part of TVS
Group.
• Established by Thirukkurungudi Vengaram
Sundaram Iyengar.
• Manufactures motorcycles, scooters,
mopeds and auto rickshaws in India.
• Won the Deming Application Prize in 2002.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
126

127. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
RURAL INITIATIVES
• To drive deeper into lucrative rural markets
TVS developed an alternate channel through
direct marketing.
• The program was handled by RC&M.
• The area influencers were involved in the
program.
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
127

128. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
AGENDA
Srinivasan Services Trust (SST)
TVS Chakra
‘POSTMAN AKSHAYA’
‘WOW’-Women On Wheels
Community Development & Social Responsibility
Bikes for Rural India
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
128

129. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SRINIVASAN SERVICES TRUST
• Trust co-sponsored by TVS Motor Company
with the vision of building self-reliant rural
communities.
• SST extended its coverage to 363 villages,
serving a population of 3.71 Lakhs.
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130. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SRINIVASAN SERVICES TRUST
• Significant achievements
– 100% enrolment of children in Balwadis and
Schools.
– 1,12,000 hectares of degraded forest land
reforested.
– 5,830 hectares were covered under Watershed
Program.
11/27/2013
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RAIPUR
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131. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
SRINIVASAN SERVICES TRUST
• Significant achievements
– Regular income of over Rs.4,000/- per month for
14,446 families.
– No case of Infant and Maternal mortality in the
project areas.
– Morbidity caused by poor sanitation & hygiene
reduced from 37% to 13%.
11/27/2013
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RAIPUR
131

132. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
TVS CHAKRA
• MoU between TVS motors and Andhra Bank
for financing two wheelers in Andhra Pradesh
• Rate: 9.25 to 9.75
• Loan Period: 12 to 60 months
11/27/2013
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RAIPUR
132

133. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
‘POSTMAN AKSHAYA’
• TVSFS (TVS Finance and Services Ltd.) has
roped in the Department of Posts (DoP) as a
franchisee to sell its loan products.
• The service was launched on August 21, 2006.
• Initially at Madurai and Tirunelveli, further to
cover the whole state.
11/27/2013
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RAIPUR
133

134. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
‘POSTMAN AKSHAYA’
• The new initiative `Postman Akshaya,‘ aimed
at financing customers in rural and semi-urban
areas to buy
– consumer durable products
– TVS brand of two-wheelers
– IT products.
• The company had fixed a ceiling of Rs. 50,000
on the individual loan under the scheme.
11/27/2013
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RAIPUR
134

135. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
‘WOW’-WOMEN ON WHEELS
• Empowering women in rural and semi-urban
areas.
• REASON
1. 31% males drive two wheelers, only 2 % women
drive two wheelers in India.
2. Lack of riding skills among women.
3. Women are afraid to venture on their own in the
absence of training and there are hardly any
avenues for scientific learning.
11/27/2013
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RAIPUR
135

136. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
‘WOW’-WOMEN ON WHEELS
• WHAT THEY DID?
1. Offer two-wheeler training to around One Lakh
young women in over 100 towns in the country.
2. Involve training of women by women trainers.
3. Emphasis has been laid on scientific learning.
4. TVS has launched Scooty Pep+ in as many as 99
colours.
11/27/2013
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RAIPUR
136

137. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
COMMUNITY DEVELOPMENT &
SOCIAL RESPONSIBILITY
• Adopted 146 villages for economic
development.
• Implemented income generation programmes
by forming 666 Self Help Groups (SHG)
comprising over 10,800 families.
• Brought 282 Ha of land under drip irrigation.
11/27/2013
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RAIPUR
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138. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
COMMUNITY DEVELOPMENT &
SOCIAL RESPONSIBILITY
• Improved farm yield by 25% through modern
farming practices and supply of quality seeds.
• Conducted over 600 health awareness
programmes, for improving the lot of
malnourished children and anaemic women.
11/27/2013
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RAIPUR
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139. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
COMMUNITY DEVELOPMENT &
SOCIAL RESPONSIBILITY
• Improved buildings and infrastructure at 35
schools in the adopted villages and helping
them with proper academic support.
• Covered over 1,200 youth under vocational
education, resulting in job opportunities for
them.
• Helped to increase the level of adult literacy to
85% through adult education programmes.
11/27/2013
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RAIPUR
139

140. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
BIKES FOR RURAL INDIA
11/27/2013
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RAIPUR
140

141. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
TVS JUPITER
• TVS Motor launches TVS Jupiter at Rs 44,200
(Sept 18 , 2013).
• Eyeing a 20 percent market share in domestic
scooter segment that is expected to touch 3
Lakh units per month by the next year.
11/27/2013
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RAIPUR
141

142. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
TVS JUPITER
• Festive season and good rains this year which
will boost rural sales that account for 50 per
cent of the company's two-wheeler sales.
• Compared to Honda Activa, TVS Jupiter clearly
has a clear price advantage, which is to attract
rural markets.
11/27/2013
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RAIPUR
142

143. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
TVS MAX 4R – THE RURAL KING
• For people carry heavy loads across long
distances everyday on rough roads.
• A bike that meet their no-nonsense
requirements.
11/27/2013
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RAIPUR
143

144. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
TVS MAX 4R – THE RURAL KING
• Features:
1. Four shock absorbers to take heavy loads
2. A detachable rear seat to accommodate goods
3. Big brakes, wheel and indicator guards to protect
the bike and goods
4. An easy centre stand
5. Long wheelbase
6. Wider tyres
11/27/2013
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RAIPUR
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145. 11/27/2013
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RAIPUR
145

146. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
•Recent foray into rural markets with the
purchase of Kinetic Motors assets.
•Products will rely heavily on Mahindra’s brand
name.
•Also on the group’s finance company, Mahindra
Finance.
11/27/2013
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RAIPUR
146

147. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
•Kinetic Group, founded in 1974, has sold over 6
million vehicles in India.
•The group has an international technical
collaborations with Hyosung Motors of Korea.
11/27/2013
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RAIPUR
147

148. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
•It has three state of the art manufacturing
facilities at
1. Koregaon Bhima
2. Ahmednagar
3. Pithampur
•A nationwide network of nearly 450 dealers
and over 1,000 service centers.
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149. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
"The company's foray into the bottom segment
of the pyramid will create tremendous brand
awareness in an entire section of the population
and open a whole new population in the urban
market. These customers will start with our twowheelers and then graduate to bigger M&M
vehicles.“
-Anand Mahindra
11/27/2013
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RAIPUR
149

150. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
PORTFOLIO EXPANSION
•Its portfolio currently comprises just one scooter,
branded Flyte.
•M&M also sells three Kinetic products -Nuvo, 4S, and
Kine
•The company, which launched two new models—
Rodeo and Duro
11/27/2013
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RAIPUR
150

151. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
INCREASING TOUCH POINTS
•Is gearing up to establish 2,000 touchpoints,
especially in Tier-II and Tier-III cities
•M&M is looking to leverage its existing
standalone commercial vehicle showroom
outlets where it can also display its twowheelers
•M&M is also focusing on expanding its
dealership network from 300 currently
11/27/2013
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RAIPUR
151

152. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
PRICING STRATEGIES
•M&M believes that its scooters are priced
lower than its rivals and deliver more power.
•The Duro is priced at Rs 38,299, while the
Rodeo carries a price tag of Rs 41,299 , making
these the cheapest scooters in their segment.
11/27/2013
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152

153. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
FINANCING PLANS
•Mahindra has tied up with five non-banking
finance companies to finance its two-wheelers –
1. Fullerton India Credit Company
2. Sriram Transport Finance Company
3. Family Credit
4. Indusind Bank
5. Mahindra Finance
•Around 25% of their two-wheelers are financed by
NBFCs, about half of which comes from Mahindra
Finance.
11/27/2013
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RAIPUR
153

154. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
TARGET 10% SHARE IN SCOOTER
SEGMENT IN INDIA
•As part of its strategic plan, Mahindra 2 Wheelers had
unveiled two new scooters, under the brand name Rodeo
RZ.
•While speaking on the occasion, Viren Popli, Senior Vice
President (Strategy and Marketing Development), Two
Wheelers, M&M said that five new launches have been
planned for this year, including two scooters and three
motorcycles.
•A few months back, the company launched another
scooter, Duro DZ and now it had brought Rodeo RZ.
•What is more, Mahindra will bring out three motorcycles
including Mahindra Mojo later this year.
11/27/2013
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154

155. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
MISSION VIJAY II
•Kinetic has formed a special alliance with Mission:
Vijay II.
•A foundation that assists our country’s war heroes in
rehabilitation.
•Offers them an opportunity for earning livelihood.
11/27/2013
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155

156. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
MISSION VIJAY II
•Through this alliance with Kinetic, the war wounded,
ex-servicemen and war widows are offered an
opportunity to set up Authorized Sales and Service
stations for Kinetic.
•These would be set up in the Tehsils or villages across
the country.
•Earn commission on all sales and also income from
servicing of Kinetic’s two wheelers
11/27/2013
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RAIPUR
156

157. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
BIKES FOR RURAL
11/27/2013
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RAIPUR
157

158. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
KINETIC BOSS
•Kinetic Boss - target rural and semi urban market
•Kapil Dev- brand ambassador , rose to great heights,
being from rural background
•Value for money bike, targeting economy segment,
priced at Rs 33,500
•The dual tube cradle frame makes for a comfortable
ride in the potholed roads of rural hinterland.
11/27/2013
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RAIPUR
158

159. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
KINETIC BOSS
FEATURES
•115 cc, 8.4 bhp power and 8.5 Nm torque - only
powerful bike in economy segment
•fuel efficient 4 stroke engine with a mileage of 92
kmpl (USTC)
•Rectangular box-type swing arm for added stability
and comfort of riding - unique in the economy
segment
11/27/2013
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RAIPUR
159

160. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
KINETIC BOSS
FEATURES
•Powerful MFR headlamp unique in the economy
segment
•Big wheelbase for additional stability
•All round footrest for pillion comfort
•Stylish with front fairing and front mudguard in ABS
body color!
11/27/2013
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RAIPUR
160

161. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
KINETIC LUNA SUPER
•60 cc moped, attractively designed
•Caters to rural and semi urban needs
•Low cost, good power and pick up
•Mileage of 60 kmpl
•Priced at Rs 18,000
11/27/2013
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RAIPUR
161

162. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
FUTURE PLANS
•Mahindra and Mahindra intended to enter the
motorcycle segment in India from 2010
•M&M is also looking at expanding its dealer
base in India
•it is also seeking help of cooperative banks and
‘grameen banks’ to make easy loan facilities
available in tier-II and tier-III cities as well as in
rural areas
11/27/2013
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RAIPUR
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163. 11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
163

164. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
ABOUT THE COMPANY
• Yamaha made its initial foray into India in
1985.
• In August 2001, Yamaha India became a 100%
subsidiary of Yamaha Motor Co. Ltd, Japan
(YMC).
11/27/2013
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RAIPUR
164

165. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
GETTING CLOSER TO CUSTOMER
•Initiated different approaches to address urban,
semi-urban and rural markets
•Urban: carnivals, test ride camps, friendly
exchange plans (spot exchange, spot finance &
spot delivery)
11/27/2013
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RAIPUR
165

166. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
GETTING CLOSER TO CUSTOMER
•Rural: marketing through influencers, WoM,
village bigwigs & private workshop owners first
convinced
•Booking counters and sales & service outlets at
taluka levels
11/27/2013
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RAIPUR
166

167. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
FINANCING
•Launched finance arm – Busan Auto Finance as
banks had stopped lending.
•Finance options for Yamaha bikes are available
at 13% interest rate from Busan Auto Finance.
•Around 40% of their sales comes from loans
and a majority of this through their finance arm.
11/27/2013
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RAIPUR
167

168. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
BIKE FOR RURAL INDIA
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
168

169. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
LAUNCH OF YAMAHA CRUX
•85% Market dominated by
•Hero Honda(CD SS, Splendor)
•Kawasaki Bajaj (Boxer, Caliber)
•Yamaha introduced Crux in the same segment
11/27/2013
INDIAN INSTITUTE OF MANAGEMENT
RAIPUR
169

170. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
LAUNCH OF YAMAHA CRUX
•The unanticipated success of Crux
1. Acceptability & Affordability- Fuel
efficiency, performance categories and
price
2. Availability & Awareness- Direct customer
contact program
11/27/2013
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RAIPUR
170

171. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
PLANS AHEAD
•Tap rural market by launching more models at
affordable price.
•Announced that India will be its biggest market
by 2016.
•Plans to strengthen presence in Tier- III cities.
•Yamaha Crux, well accepted product.
11/27/2013
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RAIPUR
171

172. Hero Honda
TVS
Mahindra &
Mahindra
Bajaj Auto
Yamaha
LML
PLANS AHEAD
•Installed annual capacity of 6 Lakh units at its 2
manufacturing units at Surajpur in UP and
Faridabad in Haryana.
•Plans to further strengthen production to 1
million units by this year.
11/27/2013
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RAIPUR
172

173. THANK
YOU
11/27/2013
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RAIPUR
173