The document provides information on the automobile industry in India and Hero MotoCorp Ltd. It discusses that the automobile industry in India is the third largest in the world and comprises commercial vehicles, passenger cars, two-wheelers and three-wheelers. It then analyzes the industry using Porter's Five Forces model and provides details on Hero MotoCorp such as its vision, mission, products, and financial performance over the last few years. Finally, it discusses the marketing mix, segmentation, targeting and positioning of Hero MotoCorp's Passion model.

1. PRESENTED BY :
SUVADEEP CHATTERJEE
PGDM-4
PNR NO:DM17D57

2. 5.6
6.6
7.2
7.9
7.1
0
1
2
3
4
5
6
7
8
9
2012-13 2013-14 2014-15 2015-16 2016-17
GDP(year-on year in %)
GDP(year-on year in %)
79%
3%
3%
15%
% share of each segment in total production
volume in FY-17
Two Wheeler
Three Wheeler
Commercial Vehicle
Passenger Vechile
SECTOR INFORMATION
 Automobile Industry in India is world’s Third Largest ; it comprises of
Commercial Vehicle's, passenger cars, Two-wheelers & Three-wheelers.
Industry Size Contribution to GDP

3. Growing Demand: Strong growth in demand due to rising income, middle class, and a
young population.
Rising Investments: India has significant cost advantages; auto firms save 10-25 per cent
on operations vis-à-vis Europe & Latin America.
Innovating Opportunities: Focus shifting on electric cars to reduce emissions.
Innovation is likely to intensify among engine technology & alternative fuels. Government
aims to build India into an R&D hub.
11.86%
3.03%
-17.24%
1.72%
8.47%
7.81%
-20.00% -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00%
2012
2013
2014
2015
2016
2017
YOY Growth Rate
YOY Growth Rate
Reason for Growth

4. PORTER’S FIVE FORCE MODEL
Threat of Substitutes
.
High - The competition has turned more
intense after the entry of foreign players
like Volkswagen and Ford with their
changed designs to cater to Indian
market
Competitive Rivalry Bargaining Power of BuyersBargaining Power of Suppliers
Threat of New Entrants
Positive impact
Neutral impact
Negative impact
Low – The threat from substitute
products continues to be low, with
public transportation being under
developed even in cities.
Low - Bargaining power of suppliers is
Low as most of the auto component
manufacturers are specialized in some
segments related to only one client.
High - In a market, like India there is
lot of bargaining power available to the
customers as there are variety of
products available in the same range, by
different manufacturers.
Moderate - The threat of new entrants is
generally medium because of the brand
equity and capital intensive nature of the
business.

5. COMPANY INFORMATION
 Hero MotoCorp Ltd. is the world's largest manufacturer of two - wheelers, based in India.
In 2001, the company achieved the position of being the Largest two-wheeler
manufacturing in India and World No 1 two-wheeler company in term of sales.
Vision
The story of Hero MotoCorp began with a simple vision - the vision of a mobile
and an empowered India, powered by its two wheelers.
Mission
Mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, styling and quality so that it converts its customers into
its brand advocates.
Strategy  Explore growth opportunities globally.
 Aggressively expand its reach to customers.
 Continue to invest in brand building activities.
Distribution  Intrinsic ability to increase reach in new geographies and growth markets.
 Hero MotoCorp's extensive sales and service network now spans over to
6000 customer touch points.

6. Products
Hero MotoCorp offers wide ranges of Two-wheeler Product which includes
Motorcycle and Scooter, and has set the standard across all the market segment.
Karizma ZMR Xtreme Sports Achiever 150 Glamour Programmed FI
Passion pro Hero Splendor Maestro Edge Pleasure

7. SWOT ANALYSIS OF HERO MOTOCORP
STRENGTH WEAKNESS
Huge brand equity and on of the biggest
players in the two wheeler Indian Market.
Excellent R&D, and wide variety of products
in every segment.
Excellent distribution, over 3000 dealership
and service centers.
Absence in the Premium Bike Segment.
High imports for its spare parts i.e. over
30% imports.
Most of the Products have similar
features and low on design and
innovation
OPPORTUNITY THREATS
Two-wheeler segment is one of the most
growing industries
Export of bikes is limited i.e. untapped
international markets.
Strong competition from Indian as well as
international brands.
Dependence on government policies and
rising fuel prices.
Better public transport will affect two-
wheeler sales.

8. 39%
28%
14%
12%
4%
3%
Market share percentage
Hero
Honda
TVS Motor Co
Bajaj Auto
India Yamaha Motor
Royal Enfield

9. SWOT ANALYSIS OF HERO PASSION
STRENGTH WEAKNESS
 Hero passion has a strong brand name and has made popular
in Tier 2 and Tier 3 cities as well as urban areas it is the
largest selling bike with strong market size.
 Hero passion has a strong distribution process through its
franchisees, it has been popular in Indian market for its
excellent distribution
 Hero passion has an excellent mileage so it is one of the
main strength for the company. As maximum of India is
heavily relied on mileage.
 Focuses on just mileage and no power: Hero
passion main focuses on its mileage and it has no
power.
 Intense competition from Indian and international
players means limited market share growth of hero
passion.
 Low on design and innovation and have low
quality features.
OPPORTUNITY THREATS
 Hero passion must use some of the innovative
technology to make sure people not only focused on
the mileage but also to the power of the bike.
 Hero passion must export their business to
underdeveloped countries where per capita income of
the person is low so there is a huge opportunity in
those country.
 Hero passion largely depends on its mileage but
better public transport will have a huge impact on
the sales of hero passion.
 As lower segment people are more tend to buy hero
passion so rise in the price of fuel will affect
business margin.

10. Marketing mix
Marketing
Mix
(4P’s)
Product
Promotion
Place
Price
• Sells its product primarily from showrooms
• Strong distribution network found at all
large or small urban and rural areas
• Tier I& II cities
• Strong network of more than 6000
Dealership across India.
• Passion Pro - “Amazing Performance &striking style
• Inclusion of Hero’s patented i3s technology
• Contains Symmetric Head Lamp-visibility at night
• Stylish Tail lamp
• Mileage figure is more than 70 kmpl
• Passion Pro is the lonely model at Rs.50350
• Top end variant Hero Passion Pro i3s AW
DISC is priced at R.s 55,059
• Available in 3 Variant and 8 colors.
• Television Advertisement
• Sponsoring Matches
• Newspaper,Magazines,Billboard
• Hoarding and distribution of Pham plates
• Commercial Tv video

11. STP ANALYSIS
SEGMENTATION
 Demographic :
Age: 18-40
Gender: Male
Income: 25k-40k per month.
Occupation: Service
Religion: Any
Family size: 3 and above
 Psychographic:
Lifestyle: Normal, Sales person having a
busy lifestyle
 Behavioral :
Occasions: Any
Benefits: Cost efficient, Smoothness on
riding, comfortable.
TARGETING
Follows single –
segment
concentration
It is concentrated
more on Lower
income segment and
mainly focuses on
rural areas as well
as tier 2 and tier 3
cities.
POSITIONING
Hero passion
has positioned
as one of the
most reliable
two wheeler
vehicle as its
main focus on
customer need
with value
proposition.

12. 8.91
8.34 8.64
10.95
11.85
0
2
4
6
8
10
12
14
FY13 FY14 FY15 FY16 FY17
PAT MARGINS(%)
% change
23500 24000 24500 25000 25500 26000 26500 27000 27500 28000 28500 29000
FY13
FY14
FY15
FY16
FY17
Sales in last 5 years
Sales in Rs Cr

13. 12.48 12.12
13.04
11.36
8.39
0
2
4
6
8
10
12
14
FY17 FY16 FY15 FY14 FY13
EBITDA Margins(%)
6773.13
5536.66
4400.42
0
1000
2000
3000
4000
5000
6000
7000
8000
FY17 FY16 FY15
Net Fixed Assets
Amounts in Crs

14. 0
500
1000
1500
2000
2500
3000
3500
4000
FY17 FY16 FY15
Working Capital (in Rs Crore)
Particulars Mar’17 Mar’16 Mar’15 Mar’14
Cost Of Materials
Consumed
18948.64 19321.72 19,783.83 18,221.53
Changes in Inventories of
FG, WIP
And Stock-In-Trade
63.17 -6.82 -29.97 8.36
Direct Cost of the Company

15. ORGANISATION STRUCTURE
Chairman
CEO
G.M
V.P
system
V.P
Finance
V.P
Marketing
Event
Manager
M.R
Manager
Assistant
Manager
Admin
Staff
Servic
e Staff
Assistants
Sales
Manager
V.P
H.R
V.P
Operations
Nice place to Work!!
The company is driven with lots of
values, through the culture at work
can get better and the frequent
changes in management is pulling it
down
Amazing place to work and also lots
of things to learn , atmosphere is
friendly and also have fun with
employees. Celebrated each function
here. Motivational atmosphere.
• Tracing Category wise and
Product wise Sales
• Product Promotion and Store
Branding
• Achieving exceeding Sales
Target on Weekly Basis

16. Direct
Sources:
•PPO
•Campus
Interview
Indirect
Sources:
•Advertisement
•Talent
Coaching
Internal
Sources:
•Promotions
•Reference
•Transfer
SHORTLISTING
WRITTEN
TEST
GROUP
DISCUSSION
TECHNICAL
INTERVIEW
PERSONAL
INTERVIEW
NOTIFICATION
&
APPOINTMENT
Selection Process
Sources of Recruitment
Recruitment and Selection

17. Marketing
Position: Assistant Sales Manager
Location: Mumbai, India
Working Hours: 8 hours per day normally
Reporting To: Sales & Marketing Manager
Working with: Area Sales Manager & all
other employees
Purpose: To administer the preparation of
quotes. Produce appropriate marketing
collateral as required.
Job Roles: Manage receipts, handling &
escalation of all the sales. To follow up sales
activities with clients & potential clients. To
monitor company sales KPIs and sales
performance.
Finance
Position: Accounts Manager
Location: Mumbai, India
Working Hours: 8 hours per day
normally
Reporting To: Senior Accountant
Working with: MD, CFO & all other
employees
Purpose: Tasks may involve project
management, strategic planning, sales
support, product design, service
application, logistics, and marketing.
Job Roles: Keep records of client
transactions. Forecasts and tracks
client account metrics. Identifies
opportunities to grow business with
existing clients. Operates as the point
of contact for assigned customers.
HRM
Position: Assistant Manager (Recruitment)
Location: Mumbai, India
Working Hours: 8 hours per day normally
Reporting To: Senior Manager
Working with: MD and other employees
Purpose: Must hold multi-tasking skills
and be able to function under pressure.
Must hold excellent negotiation skills.
Job Roles: Track offer acceptance &
candidate on boarding status through
prescribed MIS. To understand the hiring
requirement for a specific department or
roles and accordingly source right king of
resources. To maintain high degree of
integrity whilst dealing with vendors and
candidates.
Job Description

18. Types of
Training
Role Play
Job
Instruction
Internship
Training
Case Study
Method
Coaching
PERFORMANCE
APPRAISAL
MODEL
Ensure Customer
Requirements
Set Sensible
Objectives
Provides Standards
for Comparison
Scorecard to
monitor peoples'
performance level
Highlight quality
problems &
determine area for
priority attention
Provide Feedback
for Driving the
important effort
Performance Appraisal
Model
Types of Training