India's Leading Two Wheeler Company... This presentation is prepared on when Hero and Honda collaboration are broken ....

1. HERO MOTO CORP.

2. INTRODUCTION
• “ Hero” is the brand name used by the Munjal brothers for
their flagship company Hero Cycles Ltd. A joint venture
between the Hero Group and Honda Motor Company was
established in 1984 as the Hero Honda Motors Limited At
Dharuhara India .
Brij Mohan lal , Dayanand , Satyanand & Om Prakash Munjal

3. Industry Automotive
Founded 19 January 1984 (Gurgaon)
Founder(s) BrijMohanlal Munjal
Headquarters New Delhi, India
Key people
BrijMohanlal Munjal (Chairman)
Pawan Munjal (MD & CEO)
Products
Motorcycles, scooters and spare
parts

4. HISTORY
 Hero Honda is world’s third largest 2-wheeler maker.
 “THE LICENSE RAJ” : Customers in India were forced to wait
12 years to buy a scooter from Bajaj.
 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 (Kinetic Honda)
 Hero Honda is the first company which introduced their bikes
with the ( Fi ) Fuel Injection Technology in India.

5. HERO HONDA OLD T.V COMMERCIAL AD

6. MILESTONES OF HERO COMPANY
• Hero Cycles Launched by Brij Mohan lal ,
Dayanand , Satyanand & Om Prakash Munjal .
• Hero Cycles Ltd. Becomes the Largest
manufacturer of bicycles in India .
• Joint Venture pact signed between the
Hero Group and Honda Motor Co. of Japan . Honda
and Hero group to hold 26% each.
1956
1975
1983

7. • Hero Honda Motors Ltd. Incorporated in
Dharuhara, India. Production of the First
motor bike CD 100 starts.
• Splendor launched and becomes one
of the world’s largest selling vehicle.
1984
1994

8. • Technical pact signed between Honda
Motors & Hero
Honda for 10 yrs.
{ Fumihiko Ike Honda’s (MD) , Brijmohan lal Hero’s group
(chairman) , Pawan Munjal HHML (CEO) & Sunil Kant
Munjal }
• Hero Honda enters the scooter
segment in collaboration with Honda Motors
. Honda split with the Firodias in JV , Kinetic
Honda.
1995
1998

9. • Honda Motorcycles & scooter India,
(HMSI) is launched. The company is a wholly –
owned Indian subsidiary of Honda Motor Company
Ltd.
• Royalty to Honda Motor Co. hiked to Rs.
630 per vehicle as compared to the flat royalty of Rs.
200 on existing models like Splendor and Passion.
• Hero Honda emerges as the market
leader in motorcycles with sales of over a million
motorcycles and a market share of 47%
• Company include in the Sensex. Also,
becomes the world’s largest 2- wheeler company
by selling 1.3 million vehicles in 2001
1999
2001
2001
2002

10. • Another technical pact signed with
Honda Motor valid until 2014.
• Rumours of bickerings between the JV
partners surface after Honda launched its first
motor cycle , Unicorn
• HMSI launches new bikes in the 100cc
-150cc range. Direct competition for Hero
Honda bikes.
2004
2005
2008

11. • Honda Motors decides to pull out of
the JV. Munjals will buy the entire stake held
by Honda. 26% stake is bought out by the
Munjals after 26 years.
Dhak, Dhak Gone
2010

12. MANUFACTURING PLANTS
DHARUHERA, Haryana
GURGAON , Haryana
HARIDWAR, Uttarakhand
DHARUHERA, Haryana

13. PRODUCTION PLANT OF HERO MOTO CORP.

14. MARKET SHARE OF MOTORCYCLES IN INDIAN
MARKET
29.70%
24.30%
20.70%
10.10%
8.70%
3.50% 2.80%
Sales
Yamaha
Honda
Hero moto
Bajaj
Royal Enfield
TVS motors
Suzuki
others

15. COMPETITORS
• Bajaj Auto
• TVS Motors
• Yamaha Motors
• Honda motors
• Suzuki
• Royal Enfield

16. PRODUCTS OF HERO MOTO CORP.
Karizma ZMR
Hunk
CBZ Extreme
Achiever

17. Glamour
Super Splendor
Splendor NXG
Splendor +

18. Passion PRO Passion Plus
CD Deluxe Pleasure

19. HERO HONDA PLEASURE AD

20. Hero Impulse

21. SEGMENTATION
CBZ Extreme

22. BIKE FOR ALL!!!

23. FEATURES OF HERO MOTO CORP.
• Fuel Efficient
• Affordable
• Better Service/Distribution
• Innovation & Modification
• Customer Satisfaction

24. Ques. Who made the new brand
identity of Hero group?
Ans: The new brand identity and logo, Hero
MotoCorp, was developed by the London firm Wolff
Olins.The logo was revealed on 9 August 2011 in
London, the day before the third test match between
England and India.

25. HERO MOTO CORP. NEW AD

26. ADVERTISING
• Discarded product categorization on the basis of engine size
• Product differentiation was the key
• Avoided customer confusion of products
• Karizma ZMR comes with the punch line, “Above all”
• The ad for the premium segment Hunk doesn’t talk of speed or
power at all — the focus is on the looks even while standing
• The CBZ Extreme comes with the promise, “Thinking is such a
waste of time”

27. TYPES OF ADVERTISEMENT
Celebrity Advertisements….
Brand ambassdor- Virender sehwag, Saurav ganguly, Priyanka chopra, Hrithik
roshan

28. TYPES OF ADVERTISEMENT
Print and Outdoor Advertisement…

29. TYPES OF ADVERTISEMENT
Covert Advertisement…
Mujhe Kuch Kehana hai (movie) – CBZ
Gavaskar Border Trophy – “Man Of The Match”
Hero Honda Bike

30. TYPES OF ADVERTISEMENT
Public service advertisements …
• “HUM MEIN HAI HERO” has truly capture the Indian Hero's
minds and souls....

31. TYPES OF ADVERTISEMENT
Broadcast advertisements ….

32. UPCOMING PRODUCTS OF HERO MOTO CORP.
Hero Passion XPro Features &
Technical Specifications:
• 110cc Engine
• APDV engine, the first vertical
engine
• 8.7 PS of power at 7500 RPM
• No. of gear: 4
• Digital-analog combo meter
• Self/Kick starting
• Stylish fuel tank shrouds
• Tubeless tyres
• Front disc brake option
• Maintenance free battery
• 6 color options

33. UPCOMING PRODUCT OF HERO MOTO CORP.
Hero Ignitor bike specifications
:
• New 125cc ATFT engine
• 11PS power at 8800 RPM
• C.V Type Carburettor
• 5 Speed constant mesh Gear box
• Analog-Digital speed panel
• Split seat like the CBZ Xtreme
• Fluidy front
• Dual tone rear view mirrors
• Tubeless tyres
• Maintenance free battery
• Front Disc brake

34. UPCOMING PRODUCT OF HERO MOTO CORP.
Maestro :
• Displacement 109cc Engine 4
Stroke
• Single Cylinder
• V –Matic engine
• Max Power 8 BHP
• Max Torque 9 Nm at 5000rpm
• Gear Automatic Clutch NA
• Cooling type Air cooling
• Fuel Tank Capacity 6 Litres
Weight

35. NEW COLLABORATION OF HERO MOTO CORP.
EBR
( Erik Buell Racing )
Hero Moto Corp. AVL

36. HERO MOTO CORP. WITH (EBR)
• Hero MotoCorp joins hands with Erik Buell Racing (EBR) of
USA for a strategic alliance to augment its R&D capabilities
and add high-end performance motorcycles to its illustrious
model range
Mr. Pawan Munjal ( MD , CEO ) Hero Moto Corp. & Mr. Erik F. Buell ( Chairman , CTO) EBR

37. • Through this alliance, Hero MotoCorp will also for the first time enter the
exciting world of international motorcycle racing. The company will mark
its foray into the racing arena by sponsoring two teams: Team Hero and
AMSOIL Hero – a first by any Indian two-wheeler company at the AMA
Pro Racing National Guard Superbikes Championship.
• The first race is scheduled at the Daytona Speedway, at Daytona beach,
Florida, USA between March 15th & 17th, this year.

38. VIDEO OF ERIK BUELL RACING

39. HERO MOTOCORP, (AVL) PAIR UP FOR ENGINE
DEVELOPMENT
• India’s largest two-wheeler maker by volumes, Hero MotoCorp will now
work with world’s largest privately owned engine developer, AVL
Engineering, to share its technology for manufacturing Hero vehicles’
engines that would be developed in-house. Hero Moto tied up with AVL to
develop their in-house capabilities in technologies. A team from our R&D
division is already in Austria working in close coordination with AVL .

40. SWOT ANALYSIS OF HERO MOTO CORP.
Strength
. Its after sales service
. Maintenance cost is low
. Resell value is high
. Effective advertising capability
Weakness
. R&D is not close to the Hero
manufacturing plant
. Hero is vulnerable in the JV because
Honda has much power
. Hero uses Honda’s Technology
Threats
. HMSI can take away market share and
cause JV to go sour
. Bajaj motor is a strong competitors
. Pollution norms
Opportunities
. Global expansion
. Expansion of target market (include
women)
. Affordable products with reasonable
cost

41. THANK YOU FOR YOR YOUR TIME