DHAK DHAK GO……HERO HONDA SPLENDOR MADE BY: CHIRAG MAHESHWARI (24) BHARAT KALRA (38) ABSTRACT A Dream Turned into Reality…. We must do something for the community from whose land we generate our wealth. This famous quote of Hero Honda’s CMD, Mr.Brijmohan Lall Munjal set the ball rolling for the Rural Development of the area around Dharuhera (Haryana) in the year 1990 and 10 years later, the dream, the vision has turned into reality. India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. Indian companies are among the largest two-wheeler manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers. The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies leads to the arrival of new models of two-wheelers into India. This leaded to the strong growth of Indian automobile industry. KEY PLAYERS IN TWO WHEELERS INDUSTRY After facing its worst recession during the early 1990s, the two-wheeler industry bounced back with a 25% increase in volume sales in February 1995. The scooters are considered as family vehicles. There are many two-wheeler manufacturers in India. Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS). The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI). Motorcycles in India: Bikes comprise a major segment of Indian two wheeler industry. Company : Bajaj Auto Ltd Company : HERO HONDA * Hero Honda Achiever * Hero Honda CD Dawn * Bajaj Avenger * Hero Honda CD Deluxe * Bajaj CT 100 * Hero Honda Glamour * Bajaj Platina * Hero Honda Glamour-Fi * Bajaj Discover DTSi * Hero Honda Karizma * Bajaj Pulsar DTSi * Hero Honda Passion Plus * Bajaj Wave * Hero Honda Pleasure * Bajaj Wind 125 * Hero Honda Super Splendor * Sonic DTSi * Hero Honda Splendor NXG * Hero Honda CBZ Xtreme Company : Kinetic Motor Company : TVS Company : Yamaha Motor Company MOTOR India * Kinetic Aquila * Kinetic Boss * TVS Apache * Yamaha CruxS * Kinetic Challenger * TVS Centra * Yamaha G5 * Kinetic Comet * TVS Fiero * Yamaha Gladiator * Kinetic GF * TVS Star * Yamaha RX15 * Kinetic Stryker * TVS Victor * Yamaha Fazer * Kinetic Velocity INTRODUCTION ABOUT THE COMPANY 1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed 1984 Hero Honda Motors Ltd. incorporated 1985 First motorcycle "CD 100" rolled out 1987 100,000th motorcycle produced 1989 New motorcycle model - "Sleek" introduced 1991 New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle produced 1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal 1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced 1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated 1998 2,000,000th motorcycle produced 1999 New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO- 14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munja 2000 4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared 'World No. 1' - largest selling single two-wheeler model "Hero Honda Passport Programme" - CRM Programme launched 2001 New motorcycle model - "Passion" introduced One million production in one single year New motorcycle model - "Joy" introduced 5,000,000th motorcycle produced 2002 New motorcycle model - "Dawn" introduced New motorcycle model - "Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors 2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "CD Dawn" introduced New motorcycle model - "Splendor +" introduced New motorcycle model - "Passion Plus" introduced New motorcycle model - "Karizma" introduced 2004 New motorcycle model - "Ambition 135" introduced Hero Honda became the World No. 1 Company for the third consecutive year. Crossed sales of over 2 million units in a single year, a global record. Splendor - World's largest selling motorcycle crossed the 5 million mark New motorcycle model - "CBZ*" introduced Joint Technical Agreement renewed Total sales crossed a record of 10 million motorcycles 2005 Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "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 15 million production milestone achieved 2007 Hero Honda is the World No. 1 for the 6th year in a row New 'Splendor NXG' launched New 'CD Deluxe' launched New 'Passion Plus' launched New motorcycle model 'Hunk' launched 20 million production milestone achieved 2008 Hero Honda Haridwar Plant inauguration New 'Pleasure' launched Splendor NXG lauched with power start feature New motorcycle model 'Passion Pro' launched New 'CBZ Xtreme' launched 25 million production milestone achieved CD Deluxe launched with power start feature New 'Glamour' launched New 'Glamour Fi' launched 2009 Hero Honda Good Life Program launched Hunk' (Limited Edition) launched Splendor completed 11 million production landmark New motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations INDIAN RURAL MARKET AT A GLIMPSE Large and Scattered market The rural market of India consists of over 63 crores consumers from 5,70,000 villages Major income from agriculture 60 % of the rural income is from agriculture Low standard of living Low literacy, low per capita income, social backwardness, low savings, etc. Traditional Outlook The rural consumer values old customs and tradition. They do not prefer changes. Diverse socio-economic backwardness Diverse socio-economic backwardness is different in different parts of the country. Infrastructure Facilities Physical distribution becomes costly due to inadequate Infrastructure facilities like roads, warehouses, communication system, financial facilities The rural bazaar is booming beyond everyone’s expectation. an estimated induction of Rs 140 billion in the rural sector through the government’s rural development schemes in the Seventh Plan and about Rs 300 billion in the Eighth Plan is also believed to have significantly contributed to the rapid growth in demand. The high incomes combined with low cost of living in the villages have meant more money to spend. And with the market providing those options, tastes are also changing. PROBLEMS WITH RURAL MARKET Underdeveloped People and The number of people below poverty Underdeveloped Markets line has not decreased in any appreciable manner. Vast majorities of the rural people are tradition bound, fatalistic and believe in old customs, traditions, habits, taboos and practices. Lack of Proper Physical 50% of the villages in the country do not Communication Facilities have all weather roads. Media for Rural Communication Radio, television and cinemas are potential medium for communication. Rural areas account for hardly 2000 to 3500 mobile theatres which are far less then no. of villages. Many Languages and Dialects Number of recognized languages is only 16, the dialects are estimated to be around 850. The messages have to be delivered in the local languages and dialects. Dispersed Market Scattered and impossible to ensure the availability of a brand all over the country. 7 Indian states account for 76% of the country’s rural retail outlets, the total number of which is placed at around 3.7 million. Low Per Capita Income 33-35% of GDP is generated in the rural areas and is shared by 74% of the population. Low Levels of Literacy Leads to problem of communication for promotion purposes. Prevalence of spurious brands and a multitude of ‘local variants’, which are seasonal demand cheaper, therefore, more desirable to villagers Different way of thinking Fairly simple thinking and usually has 2 or 3 brands to choose. STORY BEHIND THE WALL GROWTH OF TWO WHEELER INDUSTRY IN RURAL MARKET Two wheeler industry in India has shown a good jump. In the last 4-5 years, two wheeler industry has shown average growth of 8.5%, having an overall segregation among: motorbikes (8%), scooters (12%) and mopeds (10%); all thanks to a steady revival in economic activity, low excise duties, low interest rates and relatively higher disposable incomes that enabled the demand pull. Major players: Hero Honda, Bajaj, TVS Motors, Honda Motorcycles & Scooters, Yamaha, Mahindra & Mahindra (new player) have captured the market significantly in urban sectors and are foraying to go deep into the interiors of the country. With cars like Tata Nano being introduced for Rs 1.5