HERO HONDA

A Project Report on Hero Honda

Submitted By:- Chandan Kumar (IMG- 09-11/ 005)

Chandan Kumar ~ 1 ~ HERO HONDA ACKNOWLEDGEMENT

A project cannot be said to be the work of an individual. A project is a combination of views and ides, suggestions and contributions of many people. I am extremely thankful to my project guide who gave me an opportunity to do this project report as a part of the curriculum. I wish to express my sincere gratitude to Hero Honda Company Staff & dealers whose valuable information throughout my project work. Also I wish to thank all the faculty members gave me some of their valuable time to fill up the project report, without which the project study wouldn¶t have been a success.

Ch Ku r ~2~ HERO HONDA OBJECTIVES

To study the marketing mix of Hero Honda Company

To study its life cycle initial stage, growth and maturity.

To study various promotional strategies and know about the current strategies keeping in mind the cut throat competition and arrival of Honda Company in India.

To focus on comparative study of different products of Hero Honda company Different range of Products; their success and failure.

To study overall financial performance of Hero Honda Company.

To find out the effectiveness of customer relationship management in the hero Honda.

Ch Ku r ~3~ HERO HONDA Contents

 Executive Summary  Introduction  The Board of Directors of the Hero Honda Group Comprises  Hero Honda Mission  Vision, Objectives  Achievements Awards and Accolades  Auto Industry- A Review  Classification of the Industry  Segmentation, Targeting & Positioning  Marketing Communications  4ps of Marketing  Corporate Social Responsibility (CSR)  SWOT Analysis  Comparative Marketing Strategies  Hero to Take a Call on Honda ties Before 2014  Core Competencies  Conclusion  Bibliography

Ch Ku r ~4~ HERO HONDA EXECUTIVE SUMMARY During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage. In today world customer is the king irrespective of whatever the business may be ,wherever the operations may be .A good business organization is known by its strong customer loyalty, which turns to become a unified family. The project assigned to me by the company was a market study on 100cc bikes among the dealers and customers with special reference to hero Honda dealer and loyalty of customers towards the bike. The objective of the study was to find out the dealers and customers opinion about the 100cc bikes with special reference to hero Honda dealer to understand how market fluctuations affect their strategic decision. The research methodology was descriptive in nature encompassing a sample of 200customers for in-depth analysis It was observed that 80%of the respondents are interested to purchase Hero Honda motor vehicle .are in the age group of 18-35. A large part of respondents with majority of 60% are satisfied with the availability of spare part and remaining 40% says no. It was observed that the 92% resplendence are either highly satisfied are just satisfied and remaining 8% are dissatisfied. Different models Hero Honda vehicles can be introduced for ladies, with better comfort, speed and power, so that it can cater to the changing tastes of women. More service station should be established in every part of the city, so those customers have an easy accessibility. With a strong sales and service network of 650 Authorized dealership, 1500 authorized service centers and over 1000 certified service points, Hero Honda is growing from strength to strength. Hero Honda motor should also start producing other models and should add a different style and variety to their product line. This will surely attract more customers. This will help to increase the existing goodwill and position in the market. The experience gained during the analysis and drawing inferences was an exiting and informative exercise under the guidance of unit head.

Ch Ku r ~5~ HERO HONDA INTRODUCTION

HISTORYABOUT THE CHAIRMAN

Brijmohan Lall Munjal ± Seeding a Dream

"Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying. The founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation entrepreneur. He is a man who started small, dreamt big and used a combination of grit and perseverance to create one of the country's largest corporate groups and the World's No.1 Two Wheeler Company. Instinctive from a young age, Brijmohan Lall made a rather unusual start in life. Around the time when the freedom movement in India was taking shape in the late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). He was only six years old then. Thus began an extraordinary tale of courage and perseverance. Brijmohan began his business story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set up a company that provided poor people with basic transport (cycles). Three decades later, as India evolved, he added a second crucial chapter which visualized affordable and technologically superior transport to millions of middle class Indians. The rest is history.

Building Relationships When Brijmohan and his brothers started out, there was no concept of organized dealer networks. Companies just produced, and most dealers functioned like traders. Brijmohan changed the rules of the business by trusting his gut instincts; introducing business norms that were ahead of their time, and by investing in strategic relationships. Brijmohan built a series of bonds and networks with hundreds of family members, vendors, dealers and employees. Much like the Japanese keiretsu system, these networks are now the glue that holds the Hero Group together. "Thanks to the relationships that we have nurtured so passionately in the Hero Family, the younger generations of some of our bicycle dealers have become dealers of Hero Honda. These relationships have survived through generations - through bad times and good times'' the patriarch now reminiscences. Besides bonding with his vendors and dealers, Brijmohan has been personally responsible for kindling a spirit of entrepreneurship amongst his employees, and today, 40 of his former employees are successful entrepreneurs.

Staying Ahead Though not technically qualified in the conventional sense, few of his contemporaries have understood the dynamics of technology better than Brijmohan Lall has.

Ch Ku r ~6~ HERO HONDA He could always visualize the applicability of technology before others could. For example, in the 1980s, when all two-wheeler companies in India opted for two-stroke engine technology, Brijmohan preferred a four-stoke engine - a technology that dramatically increased fuel efficiency and reduced maintenance costs. This technology was one of the biggest reasons for Hero Honda's stupendous success. Time and again, Brijmohan managed to steal a march over his industry peers. For example, when Honda Motors of Japan was looking for a collaborator in the 1980s, the Hero Group was not high up the pecking order initially as there were other more eligible and established suitors. Yet it didn't take long for the astute Japanese to realize that the Hero Group and Honda had much more in common than earlier perceived; there a sharp focus on financial and raw material management, and employee turnover was low. Honda officials were also amazed to find that the Munjals were already practicing "Just-in-time-inventory" at the time (JIT). It turned out that Brijmohan Lall's aspiration to provide cheap transportation to India's poor by default ensured lean and costeffective operations. This in turn increased vendor efficiency and led to near-zero inventories.

A Corporate Citizen A frugal upbringing and a value system modeled on the famous Gurukul system - which stresses the sanctity of the teacher-pupil relationship - imbibed in Brijmohan a strong sense of social commitment and responsibility. There is a special place in his heart for Ludhiana, the city where he took roots. Today, Ludhiana is a modern, bustling city, but Brijmohan has played no mean role in its evolution. Several schools and educational institutions in Ludhiana owe their existence to the Munjal family. The Ludhiana Stock Exchange owes its existence to Brijmohan's vision as does the Ludhiana Flying Club. He's also set up the not-forprofit Dayanand Medical College and Hospital-an institute now rated as one of the best medical colleges in India, in terms of infrastructure, quality of staff and alumni profile. In and around Dharuhera, near the first Hero Honda plant, Brijmohan and his family have left their stamp of philanthropy. The Raman Kant Munjal Foundation - which Brijmohan set up in memory of his eldest son, today runs a higher secondary school and a very modern and well-equipped 100-bed hospital at Dharuhera. The group has also adopted numerous villages and provides education, vocational training, drinking water, roads, streetlights and sewerage.

Ch Ku r ~7~ HERO HONDA The Board of Directors of The Hero Honda Group Comprises of : -

Mr. Brijmohan Lall Munjal Chairman Mr. Pawan Munjal Managing Director

Mr. Akio Kazausa Joint Managing Director Mr. Kazumi Yanagida Director Mr. Satyanand Munjal Director Mr. Om Prakash Munjal Director Mr. M P Wadhawan Director

Mr. S P Virmani Director Mr. O P Gupta Director Mr. M. Sudo Director Mr. S Toshida Director

Mr. N N Vohara Director Mr. Pradeep Dinodia Director Gen. ( Retd.) V P Malik Director

Ch Ku r ~8~ HERO HONDA Hero Honda Mission

Hero Honda¶s mission is to strive for synergy between technology, systems 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 ethics and social responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stakeholders.

VISION

Hero Honda now the leader in the two wheeler industry. Leaders are not born, they evolve over time. It all started on the auspicious. ³Baisakhi Day´ the 13th of April 1984, when the Hero Honda Motor Company joined hands. On its journey to take on the No. 1 morale, Hero Honda created some prominent milestones«.. This leadership has been achieved only because of its philosophy to excel in all areas. In fact, passion to excel is a credo of the entire Hero Honda family and is a way of life in Hero Honda. The changing Scenario of increasing competition and the entry of new brands has made the credo even more relevant. It serves as a constant reminder to ensure excellence in providing service to the customer. They are providing outstanding customer service. It is in keeping with Hero Honda¶s own passionate commitment to provide ultimate customer satisfaction. Today, they consistently meet and exceed all requirement on quality, cost and delivery.

OBJECTIVES

Hero Honda¶s mission is to strive for synergy between technology, systems 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 ethics and social responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

Ch Ku r ~9~ HERO HONDA ACHIEVEMENTS AWARDS AND ACCOLADES

Year Awards & Recognitions 2009

ET Awards for Corporate Excellence - Hero Honda is the winner of the ³Company of the Year" award for 2008 - 09. NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted "NDTV Profit Business Leadership Award 2008" Top Gear Design Awards 2008 - Hunk Bike of the Year Award NDTV Profit Car India & Bike India Awards - NDTV ³Viewers¶ Choice Award´ to Hunk in Bike category India Times Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards - ³Customer and Brand Loyalty Award´ in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) - Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year TNS Voice of the Customer Awards:

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2008

No.1 executive Splendor NXG No.1 standard motorcycle CD Deluxe No. premium motorcycle CBZ Xtreme

2007

The NDTV Profit Car India & Bike India Awards 2007 in the following category:

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Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc category) "Bike Technology of the Year" - Glamour PGM FI

"Auto Tech of the Year" - Glamour PGM FI by Overdrive Magazine. "Bike of the Year" - CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine ³Most Trusted Company´ , by TNS Voice of the Customer Awards 2006. CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006. 2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). One of the

Ch Ku r ~ 0~ HERO HONDA 8 Indian companies to enter the Forbes top 200 list of world¶s most reputed companies. No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006:

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Splendor Plus (Executive) CD Deluxe (Entry) Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey 2006. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet - American Express Corporate Awards 2006. Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006. Certificate of Export Excellence for outstanding export performance during 2003-04 for two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council.The NDTV Profit Car India & Bike India Awards 2006 in the following category:

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Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150 cc category) Bike of the Year - Glamour (up to 125 cc category) NDTV Viewers' Choice Award to Glamour in the bike category

2005

Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the 'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005.

2004

Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR

Ch Ku r ~ ~ HERO HONDA Excellence. ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India.

2003

Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Most Respected Company in Automobile Sector by Business World. Bike Maker of the Year by Overdrive Magazine.

2002

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (4th Rank amongst the top 10 Indian companies). Company of the Year of ET Awards for Corporate Excellence. Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category, ranked 6th in 'Overall Best Investor Relations' category, by Asiamoney. Highest Wealth Creating Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance.

2001

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment.

1999 National Productivity Award for the Best Productivity Award in the category of Automobile & Tractor presented by Vice President of India. 1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being ranked 9th amongst the most investor rewarding companies in India. 1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of India). 1991 Economic Times-Harvard Business School Award for Corporate Performance to Hero Honda Motors Ltd.

Ch Ku r ~ 2~ HERO HONDA AUTO INDUSTRY- A REVIEW

INTRODUCTION

The Rs. 5500 crore Indian two wheeler segment is the second largest market fin the world after China. India¶s two wheeler production is the third largest in the world after Japan and China. India has a welldeveloped two wheeler market with around 25 million households owning two-wheeler. The Indian two wheeler industry made a modest beginning in the early 1950 when Automobile Product of India ( API ) started manufacturing scooter in India. Until 1958. API and Enfield( motorcycle) were the only two in production. In 1948, began trading in imported Vespa scooter and the three ± wheeler- finally, in 1960¶s. it set up shop to manufacturer them in technical collaboration with piggaio of Italy. The agreement expired in 1971. In the initial stages, the scooters segment was regulated regime, foreign company was not allowed to operate in India, and waiting time for getting Bajaj scooters was as high as 12 years. Java, and escort. While the Enfield bullet was a four strokes bike, the Java and Rajdoot were two-strokes bikes. The motorcycles industry was originally dominated by Enfield with 350 cc bikes. The motorcycles industry was cc segment. The two wheelers segment was opened up to foreign competition in the mid 1980¶s which saw the entry of the Japanese manufactures into the country.

COMPANY PROFILE The Hero Honda story began with a simple vision ± the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Honda's commitment to customer, quality and excellence, and while doing so, maintain the highest standards of ethics and societal responsibilities. Twenty five years and 25 million two wheelers later, Hero Honda is closer to fulfilling this dream. This vision is the driving force behind everything that we do at Hero Honda. We understood that the fastest way to turn that dream into a reality is by remaining focused on that vision. There were many unknowns but we kept faith, and today, Hero Honda has been the largest two wheeler company in the world for eight consecutive years. Our growth has kept compounding. The company crossed the ten million unit milestone over a 19-year span. In the new millennium, Hero Honda has scaled this to 15 million units in just five years! In fact, during the year in review, Hero Honda sold more two wheelers than the second, third and fourth placed two wheeler company put together. With Hero Honda, the domestic two wheeler market was able to show positive growth during the year in review. Without Hero Honda, the domestic market would have actually shrunk. Over

Ch Ku r ~ 3~ HERO HONDA the course of two and a half decades, and three successive joint venture agreements later, both partners have fine-tuned and perfected their roles as joint venture partners. What the two partners did was something quite basic. They simply stuck to their respective strengths. As one of the world's technology leaders in the automotive sector, Honda has been able to consistently provide technical knowhow, design specifications and R&D innovations. This has led to the development of world class, value - for- money motorcycles and scooters for the Indian market. On its part, the Hero Group has taken on the singular and onerous responsibility of creating world-class manufacturing facilities with robust processes, building the supply chain, setting up an extensive distribution networks and providing insights into the mind of the Indian customer. Since both partners continue to focus on their respective strengths, they have been able to complement each other. In the process, Hero Honda is recognized today as one of the most successful joint ventures in the world. It is therefore no surprise that there are more Hero Honda bikes on this country's roads than the total population of some European countries put together! The company's meteoric growth in the two-wheeler market in India stems from an intrinsic ability to reach out and come closer to its customers, with every passing year. Hero Honda's bikes are sold and serviced through a network of over 3500 customer touch points, comprising a mix of dealers, service centres and stockists located across rural and urban India. Hero Honda has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most sophisticated plant at Haridwar has just completed a full year of operations. It is difficult to imagine that all this has happened in the span of just two and a half decades! The best is yet to come. During the year in review, Hero Honda powered its way in a market that, for all practical purposes, was feeling the full effects of the economic slowdown in India. With an economic recovery now clearly on the cards, Hero Honda is all set to ride into another summit. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly puts it, "We pioneered India's two wheeler industry, we've steered it through difficult times; now it is our responsibility to set the pace again.''

New Models The company has a large portfolio of brands, with the moneyspinners being mainly Splendor Plus (the world's largest selling bike) and Passion. However, the company claims it was the launch of the 150cc CBZ and 225cc KARIZMA which established Hero Honda as an inspirational brand. "The launch of CBZ and KARIZMA got us into a different league altogether. Although the sales are just about 3,000 a month, it made us an overall bike company´, Hero Honda would launch a new model of the KARIZMA by the end of current year, the Managing Director, Mr. Brijmohanlal Munjal, said. Meanwhile, the company is yet

Ch Ku r ~ 4~ HERO HONDA to decide on the location of its proposed Fourth manufacturing unit. ³The feasibility study is on'', he said, adding that the new plant was likely to come up in the next 18 months. New launches are likely to help Hero Honda gain a market share in the coming quarters. Hero Honda Motors Ltd, has launched a new 100-cc four-stroke bike, CD deluxe and Dawn is likely to be phased out of the market once the new model sells ``10,000 plus'' units per month. Sales Performance Hero Honda went against the grain and created a growth trajectory all of its own. Sales of the company grew by over 11 per cent in volume terms and in value terms; they grew by over 19 per cent. Effectively, this helped the company end the year with a market share of around 60 per cent. This robust performance helped the company increase earnings margin 120 basis points²a remarkable feat, considering that elsewhere in the world, the automobile industry went through its worst year in recent history.

Hero Honda¶s performance in its silver jubilee year helped it retain its position as the world¶s largest two wheeler company for the eighth year in a row. It also helped the company cross the 25 million unit mark²becoming the first company in India to reach this milestone. Last year, two new models were launched, namely CBZ XTREME and HUNK to address super- style and economy segments. Passion pro has found its position firm amongst Indian models, only next to Splendor, the largest selling bike in the world in terms of sales performance. CBZ was re-launched as CBZ XTREME, in April 2007, with changes and value additions to cater to specific needs of the customers. Reportedly CBZ XTREME is doing well in its segments and has sold over 10,000 units in the initial months itself. Hero Honda has targeted a sale of over 3 million bikes for the year 2009-10. This effort is supplemented by a major launch this year, in October end; this bike will have some exclusive features and will be in the 200cc plus range. There are some ambitious programmes of launching a new range of bikes with technical support from Honda in the coming years. With a slew of such measures the capacity available at present locations can at best support two-million production target at the existing plants. The company, therefore, is looking at the possibility of setting up a third plant to meet the future demand and for which techno-economic study is in progress.

New Initiatives Customer and customer satisfaction is the purpose of our being an entity. To increasingly understand him and make him part of our ongoing business. Customer related initiative has been the increase of warranty period to three years since July 2008. This has attracted a great deal of customer attention. During the year the company has added nearly a hundred dealerships and SSPs. In terms of sheer numbers, the network has grown by 16% during the year 2008-09. We would endeavor to increase our reach to every corner of this country. Plans for the future In the previous year, the domestic two-wheeler industry entered

Ch Ku r ~ 5~ HERO HONDA a period of de-growth. However, this was arrested in 2008-09, largely on the back of Hero Honda's performance. After the blip of last year, the two-wheeler industry went back to a growth phase, largely driven by Hero Honda and exports. The industry clocked total volumes of 8.5 million during the year in review, a growth of 5 per cent compared to a fall of 5 per cent in the previous year. The pace of growth was lower in the domestic market, where the industry clocked sales of 7.43 million, a rise of only 2.60 per cent. This, however, was a significant improvement over previous year when the industry had shrunk by 8 per cent. Motorcycles continue to constitute the largest chunk of the two wheeler industry, and during the year in review, accounted for four fifth of sales. Interestingly, for the second year in succession, scooters increased their share in the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend reversal from the last 10 years, where the share of scooters in the two-wheeler pie had been shrinking. Changing lifestyles among women, and the introduction of feature-rich, high-quality scooters possibly has much to do with the revival in demand

The entry segment ± made up of basic 100 cc bikes -Had started slowing two years ago, and during the year in review, sales in this segment were down by more than 15 per cent. This could be attributed to the fact that deluxe segment bikes have become affordable on account of a 4 per cent excise cut, 1 per cent reduction in CST and the special package of reduction in excise duty in December, which most manufacturers passed on to the consumers. The deluxe segment-made up of value for money and feature-rich bikes in the 100-125 cc category-grew by 15.2 per cent. The 125-250 cc category-grew at 8.8 per cent. The pace of growth has fallen from last year's levels. There is no doubt that the higher interest rates have brought down growth. Nevertheless, this segment was still able to clock a growth rate in high single digits mainly because of the excitement caused by a slew of new models that came into this segment during the year. The bigger story, of course, is that buyers in small-town India and rural India, as well as employees of the state and Central government, were relatively less affected by the slowdown, and this benefitted the two wheeler industry.

Ch Ku r ~ 6~ HERO HONDA

The legend of Hero Honda What started out as a Joint Venture between Hero Group, the world's largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the World's single largest two wheeler Company. Coming into existence on January 19, 1984, Hero Honda Motors Limited gave India nothing less than a revolution on two-wheels, made even more famous by the 'Fill it - Shut it - Forget it ' campaign. Driven by the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry. Add to that technological excellence, an expansive dealer network, and reliable after sales service, and you have one of the most customer- friendly companies.

Customer satisfaction, a high quality product, the strength of Honda technology and the Hero group's dynamism have helped HHML scale new frontiers and exceed limits. In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We will continue to make every effort required for the development of the motorcycle industry, through new product development, technological innovation, and investment in equipment and facilities and through and through efficient management."

History Of Company 1984 The Company was Incorporated on 19th January, at New Delhi. The Company Manufacture motor cycles up to 100 cc capacity. The Company was promoted by Hero Cycles (P) Ltd. (HCPL).

The Company entered into a technical-cum-financial collaboration agreement with Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish complete technical information and know-how and trade secrets and other relevant data. Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range. Its most attractive features are fuel efficiency and its light weight. CD-100 will be equipped with electronic ignition system, illuminated speedometer, 4 speed gear box, neutral and flasher indicators, etc. 15 No. of equity shares subscribed for by the promoters, etc. In November, 119,99,985 No. of equity shares issued at par of which 71,99,985 shares reserved for allotment as under: (i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur

Ch Ku r ~ 7~ HERO HONDA Chand Investments (P) Ltd. (ii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and (iii) 9,59,987 shares to friends and association of promoters. Out of the balance 48,00,000 shares, 2,40,000 shares were reserved for subscription by the employees of the Company and 96,000 shares by business associates. The remaining 44,64,000 shares were offered at par for public subscription during November. 1985 The Company embarked on its 2nd phase of expansion of increasing its installed capacity from 1,20,000 to 1,50,000 vehicles per annum by the addition of several critical aliminium and steel components. 1986 36,00,000 rights equity shares issued at par in prop. 3:10. 1987 The Company offered 6,00,000 - 15% secured redeemable non-convertible debentures of Rs 100 each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares. Another 3,00,000 - 15% debentures were allotted to retain oversubscription. Thedebentures were to be redeemed at a premium of Rs 5 per debenture on the expiry of the 7th year from the date of allotment of the debentures 3,75,000 rights equity shares issued at par in prop.3:10 1989. The Company introduced a new model "Sleek" during July.850 No. of equity shares forfeited. 1990 The Company was planning to launch a new model motor cycle-CD 100 SS sutiable to semi-rural conditions. In the domestic market the Company was reported to have a market share of 46%.- 850 forfeited shares reissued. 1994 The Company proposed to expand the capacity of existing plant at Dharuhera to 2,40,000 nos. per annum. Another plant with an installed capacity of 1,50,000 nos. per annum at Gurgaon Industrial Estate was being set up. The Company issued 39,79,500 bonus shares to the existing shareholders in the ratio of 1:4. The Company also issued 28,557 number of fractional coupons representing 14,250 shares against which shares shall be allotted to presenting the same for consolidation and allotment. The Company's production and turnover increased to 1,83,490 motorcycles and Rs.483.85

Ch Ku r ~ 8~ HERO HONDA crores respectively due to growth in demand for two wheelers and declining inflation. 1995 14,420 bonus shares issued by way of consolidation of fractional coupons. - A new Technical Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan for the period up to the year 2004 which includes technology related to models of higher Engine displacement. The Company allotted 39,79,500 No. of Equity Shares of Rs. 10/- each as Bonus shares on 7th February, by way of capitalization of General Reserves. The Company had issued 28557 No. of Fractional Coupons representing 14.250 shares against which the Shares shall be alloted on presenting the same for consolidation and allotment. 1997 Hero Honda Motors has launched its newest motorcycle, the Street, a 100 cc bike designed for use in congested urban traffic conditions. Hero Honda Motors Ltd (HHML) has set up a new motorcycle plant in Gurgaon, near Delhi for the manufacture of the Honda Super Cub 100 cc step thro bike. Hero Honda has set up a new state-of-the-art plant, heralding a new phase of development of motorcycle industry in India, to provide the most modern and technologically advanced production facilities. of the Rs.1,600 crore Hero group, as part of its globalisation plan, has set up a plant in Brazil for manufacturing hero winner scooters. A new step thru model `Street-100' with unique feature was launched on 24th January. 1998 The company proposes to increase the share capital to 5 crore equity shares of Rs. 10 each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakh cumulative convertible preference shares of Rs. 100 each with power to increase or reduce it from time to time. The company further proposes to capitalise Rs. 19,96,87,500 from general reserve to share capital through issue and allotment of bonus shares. Altogether, 1,99,68,750 fully paid bonus shares will be allotted and distributed to members of the company holding equity shares of the company in the proportion of one bonus share for every fully paid equity shares of Rs.10 each. Motorcycles major Hero Honda is considering entry into scooters in collaboration with partners, Honda Motors, after the Japanese company decided to walk out of , their scooter venture with the Firodias of Pune. Honda Motors recently pulled out of its joint venture with the Firodias in which it held a 51 per cent equity stake. Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML) have signed a five-year licence and technical assistance agreement under which KHML will

Ch Ku r ~ 9~ HERO HONDA continue to receive the technical knowhow, critical vehicle parts and access to Honda's markets even after the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL). - The Company changed the paradigm in two-wheelers by launching the most powerful and fast bike- CBZ with a unique feature of Transient Power Fuel Control (TPEC) system. 23,962,500 bonus shares issued in prop. 1:1. 1999 Hero Honda Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have signed a Memorandum of Understanding (MoU) for financing of Hero Honda motorcycles. The company, a joint venture between Honda Motor Company of Japan and Hero group of India to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to 38.6 per cent during the current fiscal. Leading two-wheelers manufacturer Hero Motors has formed a joint venture with Briggs Stratton of US to develop and manufacture four-stroke engines for mopeds and scooters in India, a top company. Honda Motor Company of Japan has decided to re-enter the scooter market in India as also foray into three-wheelers in a joint initiative with its existing joint venture company Hero Honda Motors Ltd. 2000 Hero Honda Motors Ltd. and Tata Finance Ltd. have signed a national tie-up agreement. The Company is the largest manufacturer of motorcycles in the country. The Company will relaunch its stepthru Stree Smart on Baisakhi 13th April. Hero Honda Motors Ltd (HHML), has launched an upgraded version of the existing step-through motorcycle - the Hero Honda Street. The Company was ranked as the 9th Highest Value Creator among 12 industry groups within the Bombay Stock Exchange top 100 companies over a five year period (1994-99). 2001 Hero Honda Motors Ltd. has launched a new 100cc motorcycle named `Passion'. The Company has secured shareholders' approval for splitting one equity share of Rs 10 each into five equity shares of Rs 2 each in the ratio of 1:5. Hero Honda Motors Ltd. has become the largest seller of motorcycles amongst all Honda companies and ventures in the world by selling one million motorcycles during the current financial year. Credit rating Agency Crisil has reaffirmed outstanding `AAA' rating assigned to the proposed Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper programme and fixed deposit programme of Hero Honda Motors. Promoter-Chairman of the country's largest motorcycle manufacturing company, Hero Honda Ltd, Brijmohan Lall Munjal has bagged the prestigious Ernst & Young Entrepreneur of the Year (EOY) award here on September 27.

Ch Ku r ~20~ HERO HONDA

CLASSIFICATION OF THE INDUSTRY

The two-wheeler segment can be categorized into the scooter, mopeds, and motorcycles. Motorcycles: this segment has shown the best performance in the recent years. The market leaders in this section are Bajaj Auto. TVS, Mahindra, Hero Honda. [The splendor is the most popular segment among motorcycles.]

Two Wheeler Industry

It wasn¶t an easy year for the two wheeler industry. Rising interest rates and the economic slowdown resulted in delayed consumer decision making and a rise in loan defaults. Over the course of the year, banks withdrew financing facilities from satellite towns. The share of financing, which had increased rapidly to 50-60 per cent of the total retail sales by early 2007, has now come down to below 30 per This came as a major setback for the two-wheeler industry. Ongoing government investments very clearly emphasis inclusive growth through improved connectivity, job-creation and improving quality of life. The rural road outlay has been upped by close to 60 per cent, the budget for the Urban Renewal Mission has been hiked by 87 per cent, and fund allocation to the ongoing National Highways program has been upped by 23 per cent. Importantly, India has added fresh impetus to its flagship job creation program for rural India: the National Rural Employment Guarantee Scheme. During 2008-09, this scheme, which provides 100 guaranteed days of work a day for the country¶s rural poor, provided employment opportunities to more than 44 million households last year; a year ago, 33 million households were covered. During the year, there have been important developments in two wheeler industry. The competition has strengthened though there are hardly any new entrants into the industry. There is an increasing emphasis on price and this has led to cost cutting efforts all across cent. the industry, thereby, making the customer an ultimate beneficiary. The trend also saw introduction of new motorcycles with capacity ranging from 100 to 250cc bikes. We anticipate that many more new models will be launched during the year and provide customers plenty of choice at competitive prices. Businesses cannot consistently grow at 25-30 per cent. Each business has a tendency to taper and plateau after attaining a particular size. An annual growth rate of 10-12 per cent over a period of time is extremely healthy. The TCS study rankings are conducted at the motorcycle segment level to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in their respective segments for TCS are: Hero Honda splendor plus (best standard motorcycle segment); Bajaj pulser (best executive motorcycle segment); Hero Honda karizma (best

Ch Ku r ~2 ~ HERO HONDA premium motorcycle segment); and Bullet Electra (best cruiser motorcycle segment). "The relatively low score for the executive segment indicates that most manufacturers have fallen short of meeting the high expectations of these buyers,".

Production, sales growth of the industry

The two-wheeler companies have been operating at high capacities due to high growth rates between 2009 and 2008. The growth is expected to lead to increase in the capacities from present 52 lakh units to 65 lakhs per annum in the year 2009-10, whereas the actual production estimates by that period at an estimated growth rate of 18% is only 60 lakhs. Charts showing two-wheeler industry growth rates Demand

In India the two-wheeler provide an easy and popular mode of personal transport for the middle classes. With public transportation system being inadequate and ineffective the demand for the two wheeler is likely to rise. The two-wheeler sales are expected to touch the 5 million mark by the end of the decade as against the annual sales of 35,49,271 in 2008-09. Technology With liberalization and the increasing competition. The two- wheeler industry has witnessed technological changes. The four- stroke engine is being introduced in place of the traditional populations and fuel inefficient two stroke engine. The smaller capacity engine with the electronic fuel injection is also being used. Bajaj auto is now feeling the need to increase its technological competence. Wit the competition cashing in on the technological competence for their collaborators. Emphasizes being laid on lighter and fuel- efficient vehicles. A class of vehicle having fuel efficiency of a moped and sleekness and style of the motorcycles called scooter is growing. The vehicles offer a fuel efficiency of 60-65 km p/h. They enter into new segment, Bajaj Auto has come out with TVS with Scooty pep and Hero Honda has come out with a Pleasure and upgraded version of sleek. Government policy The excise duty on two-wheeler , which has previous 10 percent to 30 percent according to the engine capacity, was rationalized is only two categories size. 15 percent for 75 cc engine capacity and 25 percent for above 75 cc engine capacity the excise duty structure has been left untouched since the 1993-94 budget.

The Indian two-wheeler industry is experiencing a major shift in its shape and structure. The established players in the industry are taking a hard look at their portfolio of products and are in the process of reshuffling them to meet the expectations of customers. The beneficiary is of course the consumer, who has an increased array of products to choose from. The last four- five years have brought about a great change in the consumer preferences for two-wheelers. The market leaders of yesteryears are being driven to maintain their leadership position in the

Ch Ku r ~22~ HERO HONDA forthcoming years. Those who have had a great going in the last few years are fighting hard to retain their new supremacy. The two-wheeler industry is perhaps the most happening place in terms of new models launched, upgraded products and innovative marketing techniques. Gone are the days of regulation when the production of scooters and motorcycles was limited to two or three brands and the number of products produced was decided by the Government; today the Indian two-wheeler market is highly competitive with numerous players who offer anything and everything a consumer demands and that too at affordable price. From a sellers market where one had to wait for a scooter for 12 years to the days when you can just walk into any showroom and drive out in the vehicle of your choice, the market of two-wheelers in India has come a long way. But this is only the beginning of the transformation.

Marketing and The Distri ution

Like any other emerging country, India experienced the knock-on effects of the global crisis during the year in review. The effects were felt through the monetary, financial and real channels. Drying up of global finance impacted from the middle of the fiscal impacted domestic capital finance; and corporate earnings came off peaks. In April 2009, Reserve Bank of India predicted that the Indian economy's growth for 2008-09 would slow to 6.6 per cent, breaking an excellent five-year growth sequence. There were two dimensions to the economic slowdown. In the first half, inflation ran into double digits as a result of the global crude shock and the global food grain shortage. To control inflation, the RBI clamped down on money supply, and reduced liquidity in the economy. By the time inflation started coming under control, domestic interest rates started shooting up. Meanwhile, the global crisis erupted, putting further pressure on liquidity levels. By October 2008, slowdown was clearly apparent in export-intensive sectors, both in the manufacturing and service side. By December, the slowdown turned into de-growth. The cutback in demand from Europe and the US was so sharp that even a competitive rupee, which devalued by around 12 per cent during the year, couldn't act as a buffer. By December 2008, the growth momentum of the first six months was lost. Planned investment projects were shelved; live projects faced a shortage of funds as credit flows dried up. As money became dearer, pay packets became slimmer and risk aversion grew both from the demand and supply side. Compulsions of coalition politics at the Centre and the impending Lok Sabha elections didn't help either, and slowed down reforms and implementation of projects, particularly in critical sectors like roads, ports and power. The worst hit was the manufacturing sector. From the second half of the financial year, the index of industrial production contracted on three occasions, remained close to zero

Ch Ku r ~23~ HERO HONDA on two occasions, and was mildly positive only once. Two ±Wheeler Financing Though two- wheeler are the most preferred from of , the fact remains that it is a lower end market product. Most two-wheeler manufacturer like Bajaj Auto and kinetic engineering have set up their own finance company since organized financiers do not think the returns are particularly attractive. The argument given by some financiers is that the price of a Yamaha or Hero Honda is so high that people prefer to buy a second hand car instead. This is particularly true of small town where people desire to own a car and they have the means the two wheeler is then only a second vehicle for the family. MARKET MECHANICS: Since 1985, when the first Hero Honda it has been and instant hit. A mileage miser with just about adequate performance further backed by image of Honda and Hero Cycles brand of aggressive marketing, it climbed up the sales chart outselling every other motorcycle by ten of thousands every year. Over the years, company has received its share of accolades, including the National Association of India Award against 200 contenders.

Ch Ku r ~24~ HERO HONDA

SEGMENTATION, TARGETING & POSITIONING

From the current segmentation, targeting & positioning and consumer surveys we found that our client has targeted the following segments

Ƈ Congested areas of urban cities. Ƈ Males/Females between the age group of 18-36 Ƈ Middle class people , mostly officials & executives The client analysis from our questionnaire it was found that our client has targeted the right segment HHML is overlooking one feature in bike which is its low maintenance cost and reliability (i.e. less chances of breakdown) which is absent in its competitors. Therefore, in order to meet the sales target, two option are available with the client, one is to redesign the bike and second is to reposition the bike as ³Bike with one time investment´. Since redesigning of bike may involve a big task and huge investment therefore we recommended repositioning the bike.

Growth The business growth of Hero Honda has been phenomenal throughout its early days. The Munjal family started a modest business of bicycle components. Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005- 2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed at girls. The Hero Group has done business differently right from the start and that is what has helped them to achieve break-through in the competitive two-wheeler market. The Group's low key, but focused, style of management has earned the company plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition. The growth of the Group through the years has been influenced by a number of factors:

Ch Ku r ~25~ HERO HONDA Just-in-Time

The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in- time inventory. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated in- house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the unit and is functional even till date.. This is the Japanese style of production and in India; Hero is probably the only company to have mastered the art of the just-in-time inventory principle

Ancillarisation An integral part of the Group strategy of doing business differently was providing support to ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's requirements and also a large number of other vendors, which include some of the better known companies in the automotive segment. Employee Policy: Another Striking feature within the Hero Group is the commitment and dedication of its workers. There is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities, further ahead of the industry norms. Long before other companies did so, Hero was giving its employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but also for the immediate family members.

Dealer Network The relationship of Hero Group with their dealers is unique in its closeness. The dealers are considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000 outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all the corners of the country, visiting dealers and send back daily postcards with information on the stock position that day, turnover, fresh purchases, anticipated demand and also competitor action in the region. The manufacturing units have a separate department to handle dealer complaints and problems and the first response is always given in 24 hours.

Ch Ku r ~26~ HERO HONDA Financial Planning The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on financial and raw material management and a low employee turnover. Quality Quality at Hero is attained not just by modern plants and equipment and through latest technology, but by enforcing a strict discipline. At the Group factories, attaining quality standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest technology with deep-rooted experience derived from nearly four decades of hard labor. It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Constant technology up gradation ensures that the Group stays in the global mainstream and maintains its competitive edge. With each of its foreign collaborations, the Group goes onto strengthen its quality measures as per the book. The Group also employs the services of independent experts from around the world to assist in new design and production processes.

Diversification

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at diversification. A considerable level of backward integration in its manufacturing activities has been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other component-manufacturing units. Then there were the expansion into the automotive segment with the setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero Majestic, went into commercial production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 100 cc motorcycles. The Hero Group also took a venture into other segments like exports, financial services, information technology, which includes customer response services and software development. Further expansion is expected in the areas of Insurance and Telecommunication The Hero Group's phenomenal growth is the result of constant innovations, a close watch on costs and the dynamic leadership of the Group Chairman, characterized by a culture of entrepreneurship, of right attitudes and building stronger relationships with investors, partners, vendors and dealers and customer

Ch Ku r ~27~ HERO HONDA

MARKETING: AN INTRODUCTION

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products and values with each other. In this way marketing is a business function that identifies customer needs and wants, determines which target market the organization can serve best, and designs appropriate products, services, and programs to serve these markets. Marketing is much more than isolated business function it is the philosophy that guides the entire organization. The goal of marketing is to create customer satisfaction profitably by building-value laden relationship with important customers as well as fulfill certain organizational objectives. People throughout the various kinds of organizations-product or service, profit or non-profit, domestic or global, small or large, need to know how to define and segment a market and how to position themselves strongly by developing need satisfying products and services for chosen target segment. They must know how to price their offerings to make them attractive and affordable and how to choose and manage intermediaries to make their products available to customers. And they need to know how to advertise and promote products so customers will know and want them. The objectives can be achieved through the implementation of suitable marketing strategy by the organization. It is the marketing logic that is formulated keeping in mind the needs of the consumers and also strategies of the competitors. The 4 factors affect it are:

Product - The tangible offer to the market, which includes the product quality, design, features, branding and packaging. Price ± The amount of money that customer pays for the product. The price of the product should commensurate with its perceived value. If does not, the buyers will turn to competitors products. Place ± Includes the various activities the company undertakes to make the product accessible and available to a large number of target customers. Promotion ± The fourth marketing mix tool, includes all the activities the company undertakes to communicate and promote its products to the target market. It consists of advertising, sales promotion, public relations, and direct and online marketing. Faced with unrelenting global competition, and ever more powerful and demanding customers, companies across the world have come to realize that their old ways of operating ± their long standing methods for developing, making, selling and servicing products ± are no longer adequate. They have also discovered that their existing tools for improving operations are not making a dent in persistent problems of high cost, poor quality and inadequate

Ch Ku r ~28~ HERO HONDA service. In order to address these problems, these companies are taking measures more radical than they have ever taken before. They have begun to re-engineer, they have ripped apart their old ways of doing things and started with clean sheets of paper. Hero Honda has effectively evolved remarkable marketing strategies for its 4P¶s. It is because of this that Hero Honda has been able to come out a niche for itself. But before we discuss the strategies for the 4Ps separately, it is imperative that we know about the marketing strategy. This is what keeps the Hero Honda going and have reinforced its leadership in the motor bike segment.

MARKETING COMMUNICATIONS

³Walk the Talk´ though Advertising, sales Promotion, Public Relations, through an emerging Media, including the Web these things are done through :-

Ƈ Promotional Methods

Ƈ Promotional Mix

Ƈ Advertisement

Ƈ Sales promotion

Ƈ Public Relations

Ƈ Event Management

Ƈ Media Management

Ƈ Budgeting

Ƈ Measuring Effectiveness

And much more««««««.. The internet¶s greatest potential has been superbly exploited by the small business ventures to reach customers directly. The market had virtually opened quickly to market changes by providing accurate market intelligence, faster communication and greater planning time. This helped to reduce the market volatility the dealer to understand the significance and value of e-commerce and benefits of embracing the latest in information technology, and initiate concrete steps to capitalize on it. The marketing is also done through sales promotions, Advertisement, publicity, etc. Strong dealer relationship expands the scope of the commercial paper programme in an organization and Hero Honda is doing that. They are doing the communication through newspaper, magazines and television channels, etc.

Ch Ku r ~29~ HERO HONDA

4PS OF MARKETING

PRODUCTS

Hero Honda Cd-dawn Now is the time for you to drive in style the new Hero Honda Cd-dawn D.N.A in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Cd-dawn price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Cd-dawn Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Cd-dawn Review here!

Hero Honda CD Dawn is a beginner's bike well tested on Indian roads and proven in city conditions. Hero Honda CD Dawn is a no-nonsense bike that's all about price and utility. Its conservative looks appeal to people who dislike fancy bikes overwhelming their personal presence. Backed by the reliability of the world's largest motorbike manufacturer, the Hero Honda CD Dawn offers improvements upon earlier Hero Honda 100 cc versions. The Hero Honda CD Dawn offers a higher ground clearance and other enhanced features without compromising on price, mileage, or reliability. The bike commands a good resale value. Looks

 Tubular double cradle frame looks sleek and masculine  Great color options (Black, Red, Dark Maroon etc.)  Unique 3-D graphics and knee recesses look awesomely rugged  Stylish muffler protector creates a trendy image  Powerful and round headlight with multifocal reflectors  The strongly contoured fuel tank enhances masculine appeal  Body colored visor blends gracefully with other graphical elements  Multi-reflector taillight gives off warm glows Control

 4-stroke single cylinder 97.2cc engine with standard Hero Honda reliability  Transmission is 4-speed constant mesh  Max Power is 5.44 KW @ 8000 rpm  Max Torque is 0.79kgm@5000 rpm  Muffler protector provides safety of the co-rider

Ch Ku r ~30~ HERO HONDA  Higher ground clearance at 165 mm makes it easier to ride on different terrain  The kick start is reliable and usually responds on the first kick  Ignition is CDI (capacitor discharge ignition)  Clutch is smooth -Multiplate, Wet type  Gear shifting is extremely user-friendly, and helpful for any novice  Internal expanding shoe type front and rear builds reliability  Light weight and easy to handle, easy on slow learners Comfort

 Knee recesses on the fuel tank enhances posture comfort  User-friendly rear shock-absorbers give a pleasant ride  Broader seats distribute rider weight more evenly and increases comfort  Hydraulic fork type front suspension provides reliable shock absorption  Swing arm with 2 step adjustable hydraulic shock absorber at the rear increases comfort on the pillion  Larger reflectors for the headlamps enhances safety  New padlock for theft security Mileage and Economy

 This low maintenance bike comes with two years warranty from the manufacturer  10.5 lt. fuel tank is good enough for 600 + kilometers on a single fill  Mileage: users report 65 kmpl under worst conditions and 75 kmpl usual after first servicing  New console with fuel gauge helps being aware of fuel economy  Thinner tyres reduce road contact area and friction, increasing fuel efficiency  Clutch is smooth and needs no maintenance for at least 6 months

Hero Honda CD-Deluxe Now is the time for you to drive in style the new Hero Honda CD-Deluxe D.N.A in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda CD-Deluxe price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The CD-Deluxe Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda CD-Deluxe Review here!

Hero Honda CD Deluxe is a good beginner's bike and convenient for city conditions. Hero Honda CD Deluxe sales have grown by 23 per cent between January-September 2007, within

Ch Ku r ~3 ~ HERO HONDA which time the industry actually declined by 14 per cent in the entry segment. Backed by the reliability of the world's largest motorbike manufacturer, the Hero Honda CD Deluxe has been successful in building a robust market for itself. Improving on earlier Hero Honda 100 cc versions, the CD Deluxe offers a higher ground clearance and other enhanced features including a padlock provision for theft security. Looks

 Tubular double cradle frame looks sleek and masculine  Unique 3-D graphics and knee recesses look awesomely rugged  Stylish muffler protector creates a trendy image  Body colored full rear cowl and sporty 3D graphics is distinctly urban  Aluminium die-cast rear handle matches the space-age  New stylish visor with trapezoidal multi reflector headlight gives owner's pride  The strongly contoured fuel tank enhances masculine appeal  Body colored visor blends gracefully with other graphical elements  Alloy wheels (optional) are trendy and flamboyant  Multi-reflector taillight gives off warm glows Control

 4-stroke single cylinder 97.2cc engine with standard Hero Honda reliability  Transmission is 4-speed constant mesh  Max Power is 5.67 KW @ 7500 rpm  Max Torque is 0.77kgm@7500 rpm  Muffler protector provides safety of the co-rider  Higher ground clearance at 165 mm makes it easier to ride on different terrain  The kick start is reliable and usually responds on the first kick  Ignition is CDI (capacitor discharge ignition)  Clutch is smooth -Multiple Wet type  Gear shifting is extremely user-friendly, and helpful for any novice  Rear tyres have a good grip pattern  Internal expanding shoe type front and rear brakes builds reliability  Light weight and easy to handle, easy on slow learners Comfort

 Knee recesses on the fuel tank enhances posture comfort  User-friendly rear shock-absorbers give a pleasant ride

Ch Ku r ~32~ HERO HONDA  Broader seats distribute rider weight more evenly and increases comfort  Hydraulic fork type front suspension provides reliable shock absorption  Spring loaded, hydraulic type, two step adjustable shock absorber at the rear increases comfort on the back seat  Larger reflectors for the headlamps enhances safety Mileage and Economy

 10.5 lt. fuel tank is good enough for 600 + kilometers on a single fill  New console with fuel gauge helps being aware of fuel economy  Alloy wheels (optional), if used, require little maintenance  Mileage: users report 65 kmpl under worst conditions and 75 kmpl usual  Clutch is smooth and needs no maintenance for at least 6 months

Hero Honda Splendor Plus Now is the time for you to drive in style the new Hero Honda Splendor Plus in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Splendor price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Splendor Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Splendor Review here!

Hero Honda Splendor Plus is one of the largest selling bikes in India. It sports several improvements over the old splendor including improvised head and tail lamps and graphics. The suspension system is universally acclaimed. This lightweight bike is good for city conditions Looks

 Tubular double cradle body frame looks as strong and masculine as the earlier Splendor  Eye-catching graphics  Trendy multi-reflector head and tail lamps  Aluminum grip replaced by the classic iron bar

Control

 Max speed is 85-90 kmph  Accelerates to 60 kmph in 7 seconds

Ch Ku r ~33~ HERO HONDA  4 stroke, single cylinder, air-cooled OHC engine  Max power of 7.5 bhp @8000 rpm  Electronic ignition  109 kg kerb weight makes this bike easy to control and handle Comfort

 Powerful 35w headlight gives bettor control for night-riding  Classic iron bar is more reliable than previous aluminum grips  Telescopic hydraulic fork suspension works perfectly  Hydraulic spring loaded type with both side rear suspension is comfortable for pillion riders  1230 mm wheel base gives better road grip  159 mm ground clearance is good for any terrain  Powerful disc brakes at front provides excellent stopping power  Low engine noise Mileage and Economy

 60-65 kmpl in city conditions  Around 70 -80 kmpl on highways  Low maintenance and high resale value  Reliable after-sales support

Hero Honda Splendor NXG Now is the time for you to drive in style the new Hero Honda Splendor NXG in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Splendor price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Splendor Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Splendor Review here!

The Hero Honda Splendor NXG is a new age bike in Hero Honda's 100 cc stable. Stunning looks, economic performance, and a multitude of features backed by Hero Honda's reliable support network, makes this a good choice for the city commuter. The Splendor NXG adds to the prevailing Splendor variants with little improvisations like a high intensity beam that does not depend upon bike speed and provides reliable view in city nights or on rough terrain where the going is slow.

Ch Ku r ~34~ HERO HONDA Looks

 New fairing and visor combo  Powerful & stylish trapezoidal mutlireflector headlight  New design fuel tank with knee grip  New body panels and sleek body graphics  Large & stylish tail light  Attractive aluminum die cast rear grip  chrome fuel tank lid  five-spoked aluminium-alloy wheels in the top-end variant of the NXG  five attractive colors and seven stripe combinations Control

 Top speed of 90 kmph  4 stroke 97.2 cc engine  New engine which delivers power of 7.7 PS at 7500 rpm  Better power & torque at lower engine RPM for comfortable city riding  Optimum gear ratios for better pickup  Mutli reflector headlight that provides better visibility even at lower speeds  Gear: 4 Speed  The fuel switch is easier to operate than usual switches with thin levers  160mm ground clearance Comfort

 Upright and comfortable riding posture  Easy ride both for the rider and those on the pillion  Telescopic fork type hydraulic front suspension  Hydraulic rear suspension shock absorbers  A new V-shaped instrument cluster with trip meter  160mm ground clearance  Stable handling Mileage and Economy

 Average mileage is 77 kmpl  Tank Capacity: 10.3 Lts

Ch Ku r ~35~ HERO HONDA

Hero Honda Passion Plus Now is the time for you to drive in style the new Hero Honda Passion Plus in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Passion price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Passion Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Passion Review here!

The Hero Honda Passion Plus is a bike meant for the executive city commuter. It's a good bike in the 100 cc range that delivers decent mileage, looks, and high resale value. This improved version of the Hero Honda Passion comes with several improvements over its earlier versions and gives an easy ride and easy handling.

Looks

 Tubular double cradle frame  Strongly contoured fuel tanks  9 new two-tone body colors  Great new graphics  Black painted engine and chain case & front forks  two tone front fender  heat protector on the muffler  body colored mirrors  white dial instrument cluster  aluminum die cast rear grip  multi-reflector headlight and winkers  Optional 5 spoke black alloy wheels Control

 maximum speed of 85kph  four-stroke, air-cooled, single cylinder engine that generates a piston displacement of 97.2cc  engine is consistent in performance and reliable  maximum power of 7.5 PS @ 8000 rpm  optional front disc for improved braking

Ch Ku r ~36~ HERO HONDA  broad rear tyre  Stable riding and easy handling - very well balanced  Smooth and easy gearbox, false neutrals are unheard of  Kick start Comfort

 Easy posture without back strains  telescopic hydraulic forks at the front  swing arm with adjustable hydraulic dampers at the rear  adjustable rear cushion  wider pillion grip  lockable seat and helmet holder  luggage space with locking facility Mileage and Economy

 fuel tank capacity of 12.8 liters  50 - 55 Km/liter in city  60-65 Km/liter on highways  Low maintenance  High resale value

Hero Honda Splendor Super Now is the time for you to drive in style the new Hero Honda Splendor Super in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Splendor price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Splendor Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Splendor Review here!

The Hero Honda is meant for the city commuter who is upgrading from 100 cc bikes. It's easy to handle, gives comfortable vibration free rides, and provides reasonable mileage. A good suspension system is easy on the rider and those on the pillion. This is not a bike to race with, but one you can depend on to get you to your destination and back in the city safely and economically.

Ch Ku r ~37~ HERO HONDA

Looks

 Tubular double cradled body frame  Black core color with orange stripe gives killer looks  Large rectangular headlamp with a 35w halogen lamp  Tinted translucent visor  Masculine fuel tank adorned with graphics  Symmetrical body panels on both sides  Steeply angled bikini fairing  Chrome plated steel grab rail  Black matt finished silencer  Black silencer contrasted by shiny chrome heat shield Control

 Self start is quite responsive, kick start version is also available  Powerful pick-up  125 cc quantum core engine with proven reliability  No user complaints about engine overheating  9 bhp max output at 7000 rpm  nimble and makes for easy twists and turns on potholed roads Very little engine knocking  Excellent brakes, drum brakes in kick start version, disc brakes in self-start version  Smooth gears - 4 speed with all downshifting gears Comfort

 Excellent suspension and doesn't give back problems  Telescopic hydraulic fork type front suspension  Hydraulic shock absorbers with a rectangular section swing arm at the rear  Engine is refined and tuned to commuting and not racing  Comfortable riding posture both for the rider and for the pillion rider  Well cushioned wide seats  Instrument cluster has a large speedo dial which is easy to read  User friendly electric switches  Push-cancel indicator switch  Well positioned horn switch and pass light flasher  Fatigue free and vibration free long rides

Ch Ku r ~38~ HERO HONDA

Mileage and Economy

 Large fuel tank gobbles up at least 12 lt and saves frequent visits to the petrol pump  Users report an on-road mileage of 55 plus kmpl in city and 60 plus kmpl on highways that sometimes reaches more than 70 kmpl  Slimmer tyres reduce friction and enhance mileage  Good tyre quality  Three years or 40, 000 km warranty

Hero Honda Glamour Now is the time for you to drive in style the new Hero Honda Glamour D.N.A in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Glamour price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Glamour Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Glamour Review here!

With Hero Honda Glamour, the name tells all. Bikers who prefer stylish looks in bikes to come with four essential attributes - reasonable price, ease of handling, good after-sales maintenance support and acceptable resale value - love this exceptionally good-looking bike. The new Hero Honda Glamour looks all the better with enhanced graphics and other details and continues to sell to the discerning. Hero Honda Glamour is available in self-start (129 kg) and kick-start (125 kg) versions

Looks

 Tubular double cradle type body frame  Trendy Visor  Large macho petrol tank with eye-catching graphics  Elegant Tri-pod head panel  Black alloy wheels  Black painted engine chain and case  Body colored rear grip  Body colored louvers on visor  Body colored rear view mirror  Catchy design of smoke exhaust and guard

Ch Ku r ~39~ HERO HONDA  Mind-blowing red and black visual contrasts  Voluptuous front fairing  Dual-tone theme on the front mudguard and chain guard  The side and rear panels blend well with each other Control

 Maximum speed is 120 kmph  Powerful pick-up increases with servicing  Quantum core air-cooled, four-stroke and single-cylinder engine with a displacement of 124.7 cc  Max power 6.72 KW @ 7000 RPM  Self/Kick start, Weight: 125 kg (kick) 129 kg (self)  Extremely well-balanced  Low engine noise  Super smooth four speed constant mesh gears  Front brakes: 240 mm Disc with Non asbestos type pad, Drum brakes are internal expanding shoe type  Rear brakes: Internal expanding shoe type drum brakes  Multi-plate wet type clutch Comfort

 35w, multi-reflector type halogen bulb enhances night riding safety  Good balance and low engine noise  Comfortable seats good for both the family and the solo rider  Thicker tyre increases bike stability  Driving is smooth in all gears  Telescopic hydraulic shock absorbers at front  Swing arm hydraulic shock absorber at rear  Relaxed posture,- cornering manners are excellent Mileage and Economy

 Large fuel tank capacity of 13.6 lts saves frequent visits to the petrol pump  Average user reported mileage varies from 55.2 kmpl in the city to 58.3kmpl on highways - dealers claim 60-62 kmpl  Current company policy provides six free services  Side draft variable Ventura (Piston) carburetor provides reliable support

Ch Ku r ~40~ HERO HONDA  Advanced microprocessor ignition system (AMI) aids optimal combustion and saves fuel  18 inch alloy wheels have low maintenance being rust-free, and impact resistant

Hero Honda Glamour FI Now is the time for you to drive in style the new Hero Honda Glamour FI in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Glamour price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Glamour Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Glamour Review here!

The Hero Honda Glamour FI 125 cc, built after the existing Glamour 125 cc, is a technological trendsetter in two wheelers. This bike runs on unleaded petrol and introduces the Programmed Fuel Injection technology and Electronic Control Unit packed into the space of a carburetor. These groundbreaking technologies take mileage and rider control to a level that can never be reached in bikes running on earlier technologies. Innovative safety features made possible only by the PGMFI system accompany this 21st century motorbike. The 125 cc Glamour FI is available in two variants with a price difference of about Rs.4000 lying in between. Looks

 Tubular double cradle type body frame  New body colored grab rail and rear view mirrors  Trendy Visor  Large, masculine petrol tank with brilliant graphics and sculpted knee recesses  Black colored Engine with unique FI logo.  Black alloy wheels  Body colored rear grip  Body colored louvers on visor  Body colored rear view mirror  Catchy design of smoke exhaust and guard  Mind-blowing red and black visual contrasts  Voluptuous front fairing  Dual-tone theme on the front mudguard and chain guard  Well matched side and rear panels.

Ch Ku r ~4 ~ HERO HONDA

Control

 124.8cc 4-stroke single cylinder OHC  Maximum power of 6.72 kw (9 bhp) @ 7000 rpm  Maximum torque of 10.35 Nm @ 4000 rpm  Excellent cold starting ability (no choke operation)  No starting problems even after long storage periods  Bank Angle Sensor, an industry first feature, which cuts off the fuel supply & ignition if the bike tips over (falls)  FI Malfunction Indicator Lamp which diagnoses any malfunction of sensors and indicates the same to the rider  Consistent engine performance at varying altitudes and ambience temperature  Excellent drivability owing to quick throttle response  Excellent Low End characteristics - minimum gear changing in city traffic  Extremely well-balanced  Low engine noise  Super smooth four speed constant mesh gears  Front brakes: 240 mm Disc with Non asbestos type pad, Drum brakes are internal expanding shoe type  Rear brakes: Internal expanding shoe type drum brakes  Multi-plate wet type clutch Comfort

 No starting problems after long storage periods  Bike can run at lower speeds on top gear without engine knocking  Bank Angle Sensor cuts off the fuel supply & ignition if the bike tips over (falls)  35w, multi-reflector type halogen bulb enhances night riding safety  Good balance and low engine noise  Comfortable seats good for both the family and the solo rider  Thicker tyre increases bike stability  Driving is smooth in all gears  Telescopic hydraulic shock absorbers at front  Swing arm hydraulic shock absorber at rear  Relaxed posture,- cornering manners are excellent Mileage and Economy

Ch Ku r ~42~ HERO HONDA  Large fuel tank capacity of 13.6 lts saves frequent visits to the petrol pump  LCD Fuel Gauge displays fuel level in the fuel tank which is easy to read  Bank Angle Sensor cuts off the fuel supply & ignition if the bike tips over (falls)  Intelligent computer controlled electronic fuel injection system which scans critical engine operating conditions through sensors and provides input to the Electronic Control Unit (ECU) to inject the accurate amount of fuel matching the requirement  The sensors include - throttle position, engine operating temperature, intake air temperature, manifold absolute air pressure and crank angle  The RTMI takes input on distance traveled and fuel consumed from the speed sensor and ECU and displays the average mileage for the preceding 10 seconds  Enables the rider to know the Real Time Mileage  Provides an opportunity to adjust riding style to get the optimum mileage  Consistent engine performance at varying altitudes and ambience temperature  No carburetor - less maintenance  Lowest Emissions - will meet even the most stringent emission norms of the future  18 inch alloy wheels have low maintenance being rust-free, and impact resistant

Hero Honda Achiever Now is the time for you to drive in style the new Hero Honda Achiever D.N.A in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Achiever price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Achiever Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Achiever Review here!

The Hero Honda Achiever has made a comeback in a new 2007 avatar with definite improvements over its 2006 model. The differences that strike on a first glance are the cheerful graphics and black alloy wheels. However, there are further differences that make this bike better than the 2006 model. Meant for the premium consumer sector, the Hero Honda Achiever matches power and looks with price and performance. The Hero Honda Achiever is a good looking and basic 150 cc bike.

Looks

 The tank, side panels, or the tailpiece has been picked up directly and looks as good as Hero Honda Ambition  Front fairing and the instrument cluster is different and distinct from Ambition

Ch Ku r ~43~ HERO HONDA  Well sculpted fuel tanks with cool knee indents  A multi-reflector headlight with a halogen lamp and a position lamp  Uniquely designed muffler with heat shield  Dual tone painted chain case  5 spoke black colored cast wheel  Attractive visor  Chrome coated filler lead  Single down tube  Five exciting body colors Control

 Can effortlessly achieve speed of 109 kmph  Great acceleration, reaches 100kmph in just 17.83 sec  Equipped with Tuff-up puncture resistant tyre tube four-stroke engine constructed of aluminum-alloy with an air-cooled, and twin-valve equipped motor of 149.1cc displacement  13.4 bhp at 8500 rpm power  Torque is 1.28 kgm @ 5000 rpm  wheel and tyres are same at 2.75 x 18 front and 3.oo x 18 rear  electric and kick start  The speed-odometer dial at left includes a trip meter,  the right hand side dial includes the fuel gauge  The gearbox is smooth, no false neutrals or gear hunting  Five gears Comfort

 Taller handlebars provide more upright posture  Twin rear sox and drums  A multi-reflector headlight with a halogen lamp and a position lamp  Conventional suspension set-up of telescopic shock absorbers at front  Rectangular swing-arm adjustable hydraulic shock absorbers at the rear  Front disk brake and cast wheels come as standard fitment  Very low engine noise Mileage and Economy

Ch Ku r ~44~ HERO HONDA  The Hero Honda Achiever delivers an impressive 51.3 kmpl in real city conditions and 55.3kmpl on the highway  Wheel and tyres are same at 2.75 x 18 front and 3.oo x 18 rear  Fuel tank capacity is 12.5 litres  Achiever has almost the best Low-End-Torque in its category which enhances mileage and helps to perform better at lower speeds in city conditions

Hero Honda CBZ Xtreme Kick Start Now is the time for you to drive in style the new Hero Honda CBZ Xtreme Kick Start in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda CBZ price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The CBZ Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda CBZ Review here!

The Hero Honda CBZ Xtreme has little in common with its earlier version the Hero Honda CBZ except a similar headlamp. With the Hero Honda CBZ Xtreme, Hero Honda has tried a radical departure from its earlier 150 cc design themes. The success of this approach is proven by the fact that since its launch in 2006, the Hero Honda CBZ Xtreme has been selling almost 15, 000 to 20, 000 units per month, and crossed the 50, 000 mark within April 2007. This large, handsome, and good-looking bike has more to it than meets the eye. Looks

 Tubular diamond-frame type chassis with a single down tube and a box-section swing arm  Matt-black powder-coated engine block  Matt-black alloy wheels  Black plastic lower side panels striped across by a shiny chrome sash  Split hand grips for the pillion rider with a distinct look  Additional Teflon coat over visible silvery surfaces  The side indicators that usually stick out in other bikes are integrated into the headlamp housing  A strip of clear glass above the headlamp conceals the parking lamp or pilot lamps positioned above the headlight  Body colored rear mirrors adds color to the handlebar area  Classy, brushed-steel console finish

Ch Ku r ~45~ HERO HONDA  Rugged knee recesses built into the large, shapely fuel tank with Xtreme's logo emblazoned across its sides  Aircraft type fuel tank lid  Deeply contoured seat  Sculpted and sharp rear cowl  Rear indicators integrated into rear LED headlamps  Non-metallic bright colors Control

 Extremely compact body design meant for swift turn-in  Awesome acceleration: 0 - 60 kmph in 5 seconds  4-stroke air-cooled single cylinder engine, producing 14.4 bhp at 8500rpm  Maximum torque12.8Nm at 6500rpm  Fine tuned throttle responses with low engine noise  Efficient kick start instantly powers up the engine  Low engine noise makes it hard to detect a running engine  Splendid stability and fabulous turning ability  CBZ-X travels in a straight line and doesn't skid even at turns at 100kmph  Forward leaning position enhances effortless braking  Split rear grip, again a first-time feature in motorcycles in India  Instrument cluster contains analogue gauges, including a speedometer, fuel gauge, and an engine-rpm meter in addition to turn, neutral indicators, and a powerful high beam Comfort

 Powerful high beam builds safety for the night rider  The large speedometer, smaller tachometer, and fuel gauge can be read quickly and easily  Tinted cowl improves aerodynamics and cuts the glare on the bike's instrumentation  Relaxed and comfortable riding  Upright posture doesn't strain wrists  Generous knee recesses built into the fuel tank are friendly for tall riders  Well placed footrests  Forward leaning position enhances effortless braking  is highly efficient and gives instant response  New brake pedal has a little toe guard for the big toe and a all-chrome tab to press on  Extremely good suspension built with the fast moving solo rider in mind  High ground clearance allows riders to see forward over hatchbacks and sedan cars

Ch Ku r ~46~ HERO HONDA  Wide 100/90 low aspect ratio rear tyre for additional road grip and safety  Tail lamp cluster has a segmented stop-and-brake light section with turn indicators built into a single unit  Puncture resistant tuff up tube increase reliability of performance  The CBZ Xtreme has the best gearbox in its class, smooth and free from problems Mileage and Economy

 New model comes with a 3-year / 40,000 kms warranty  CBZ-X gives 50kmpl in city roads 61kmpl on highways  Tuff up tubes are economical vis-a-vis emergencies  Black Alloy Wheels have low maintenance

Hero Honda CBZ Xtreme Self Start Now is the time for you to drive in style the new Hero Honda CBZ Xtreme Self Start in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda CBZ price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The CBZ Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda CBZ Review here!

The Hero Honda CBZ Xtreme has little in common with its earlier version the Hero Honda CBZ except a similar headlamp. With the Hero Honda CBZ Xtreme, Hero Honda has tried a radical departure from its earlier 150 cc design themes. The success of this approach is proven by the fact that since its launch in 2006, the Hero Honda CBZ Xtreme has been selling almost 15, 000 to 20, 000 units per month, and crossed the 50, 000 mark within April 2007. This large, handsome, and good-looking bike has more to it than meets the eye.

Looks

 Tubular diamond-frame type chassis with a single down tube and a box-section swing arm  Matt-black powder-coated engine block  Matt-black alloy wheels  Black plastic lower side panels striped across by a shiny chrome sash  Split hand grips for the pillion rider gives a different look  Additional Teflon coat over visible silvery surfaces  The side indicators that usually stick out in other bikes are integrated into the headlamp housing

Ch Ku r ~47~ HERO HONDA  A strip of clear glass above the headlamp conceals the parking lamp or pilot lamps positioned above the headlight  Body colored rear mirrors adds color to the handlebar area  Classy, brushed-steel console finish  Rugged knee recesses built into the large, shapely fuel tank with Xtreme's logo emblazoned across its sides  Aircraft type fuel tank lid  Deeply contoured seat  Sculpted and sharp rear cowl  Rear indicators integrated into rear LED headlamps  Non-metallic bright colors Control

 Extremely compact body design meant for swift turn-in  Awesome acceleration: 0 - 60 kmph in 5 seconds  4-stroke air-cooled single cylinder engine, producing 14.4 bhp at 8500rpm  Maximum torque12.8Nm at 6500rpm  Fine tuned throttle responses with low engine noise  Efficient self start instantly powers up the engine  Low engine noise makes it hard to detect a running engine  Splendid stability and fabulous turning ability  CBZ-X travels in a straight line and doesn't skid even at turns at 100kmph  Forward leaning position enhances effortless braking  Split rear grip, again a first-time feature in motorcycles in India  Instrument cluster contains analogue gauges, including a speedometer, fuel gauge, and an engine-rpm meter in addition to turn, neutral indicators, and a powerful high beam Comfort

 Powerful high beam builds safety for the night rider  The large speedometer, smaller tachometer, and fuel gauge can be read quickly and easily  Tinted cowl improves aerodynamics and cuts the glare on the bike's instrumentation  Relaxed and comfortable riding  Upright posture doesn't strain wrists  Generous knee recesses built into the fuel tank are friendly for tall riders  Well placed footrests  Forward leaning position enhances effortless braking

Ch Ku r ~48~ HERO HONDA  Disc brake is highly efficient and gives instant response  New brake pedal has a little toe guard for the big toe and a all-chrome tab to press on  Extremely good suspension built with the fast moving solo rider in mind  High ground clearance allows riders to see forward over hatchbacks and sedan cars  Wide 100/90 low aspect ratio rear tyre for additional road grip and safety  Tail lamp cluster has a segmented stop-and-brake light section with turn indicators built into a single unit  Puncture resistant tuff up tube increase reliability of performance  The CBZ Xtreme has the best gearbox in its class, smooth and free from problems Mileage and Economy

 New model comes with a 3-year / 40,000 kms warranty  CBZ-X gives 50kmpl in city roads 61kmpl on highways  Tuff up tubes are economical vis-a-vis emergencies  Black Alloy Wheels have low maintenance

Hero Honda Hunk Kick Start Now is the time for you to drive in style the new Hero Honda Hunk Kick Start in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Hunk price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Hunk Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Hunk Review here!

The new the 150cc Hero Honda Hunk is here! It's very manly and definitely a powerful and commanding bike. It's got great looks and fairing along with styling. It's big and awesome to look at, and it's a tad bit shorter and sporty that makes it look unique and possessed. It competes for attention with the CBZ. With stunning colours, it looks really cool, but lacks digital instrumentation. Go for it - it's a sure head turner!

Looks

 Large Muscular fuel tank and Aerodynamic Tank Shroud  Trapezoidal Multi reflector Head light  Stylish, Clear lens Multi reflector Indicators  Large, inclined Muffler

Ch Ku r ~49~ HERO HONDA  Dual coloured Aircraft type fuel tank cap  5 Spoke black alloy wheels  Raised Rear fender  Chrome finished 3 D " HUNK" Emblem  Contemporary new Fuel cock  Classic, 3 pod console with chrome ringed large speedometer  5 Exciting body colours  2 new colours - Panther Black and Fighter Blue  Contoured Saddle with Pillion seat hump  Aluminium Handle Bar holder cover However, the Hunk does not feature

 Digital instrumentation, LED tail lamps,  Rear discs  Split rear grabs  Body coloured mirrors and full fairing Control

 150cc Engine, which delivers amazing top power of 14.2 BHP @ 8500 RPM and a torque of 12.80 N-m @ even at a low RPM of 6500  0-60 Km ph in 5 seconds flat  Advanced Tumble Flow Induction" (ATFI) Technology  Advanced Microprocessor Ignition System -"AMI" with Multi Mapping Digital CDI along with "Carburettor controlled Variable Ignition" for better, throttle, acceleration, and immediate response  Unique "Anti-Kick back" device 240 mm front Disc Brakes as standard.  5speed (1-down 4-up pattern) gearbox.  kick start and self start option

Comfort

 New 5 step adjustable "Gas Reservoir Suspension" - "GRS" for comfortable ride even on the toughest of roads  Puncture resistant Rear Tuff -up Tube.  1325 MM long wheel base for enhanced stability.  Wide 100 / 90 low aspect ratio Rear tyre.

Ch Ku r ~50~ HERO HONDA  240 mm front Disc Brakes as standard.  Self Start option.  Better that CBZ Extreme and Pulsar  Latest 10W30 SJ Grade, JASO MA Grade Engine oil which allows oil change at intervals of 6000 kms.  Reduced maintenance cost, excellent ability to start immediately in cold weather.

Hero Honda Hunk Self Start Now is the time for you to drive in style the new Hero Honda Hunk Self Start in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Hunk price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Hunk Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Hunk Review here!

The new the 150cc Hero Honda Hunk is here! It's very manly and definitely a powerful and commanding bike. It's got great looks and fairing along with styling. It's big and awesome to look at, and it's a tad bit shorter and sporty that makes it look unique and possessed. It competes for attention with the CBZ. With stunning colours, it looks really cool, but lacks digital instrumentation. Go for it - it's a sure head turner!

Looks

 Large Muscular fuel tank and Aerodynamic Tank Shroud  Trapezoidal Multi reflector Head light  Stylish, Clear lens Multi reflector Indicators  Large, inclined Muffler  Dual coloured Aircraft type fuel tank cap  5 Spoke black alloy wheels  Raised Rear fender  Chrome finished 3 D " HUNK" Emblem  Contemporary new Fuel cock  Classic, 3 pod console with chrome ringed large speedometer  5 Exciting body colours  2 new colours - Panther Black and Fighter Blue  Contoured Saddle with Pillion seat hump  Aluminium Handle Bar holder cover

Ch Ku r ~5 ~ HERO HONDA However, the Hunk does not feature

 Digital instrumentation, LED tail lamps,  Rear discs  Split rear grabs  Body coloured mirrors and full fairing

Control

 150cc Engine, which delivers amazing top power of 14.2 BHP @ 8500 RPM and a torque of 12.80 N-m @ even at a low RPM of 6500  0-60 Km ph in 5 seconds flat  Advanced Tumble Flow Induction" (ATFI) Technology  Advanced Microprocessor Ignition System -"AMI" with Multi Mapping Digital CDI along with "Carburettor controlled Variable Ignition" for better, throttle, acceleration, and immediate response  Unique "Anti-Kick back" device 240 mm front Disc Brakes as standard.  5speed (1-down 4-up pattern) gearbox.  kick start and self start option Comfort

 New 5 step adjustable "Gas Reservoir Suspension" - "GRS" for comfortable ride even on the toughest of roads  Puncture resistant Rear Tuff -up Tube.  1325 MM long wheel base for enhanced stability.  Wide 100 / 90 low aspect ratio Rear tyre.  240 mm front Disc Brakes as standard.  Self Start option.  Better that CBZ Extreme and Pulsar  Latest 10W30 SJ Grade, JASO MA Grade Engine oil which allows oil change at intervals of 6000 kms.  Reduced maintenance cost, excellent ability to start immediately in cold weather.

Hero Honda Karizma

Ch Ku r ~52~ HERO HONDA Now is the time for you to drive in style the new Hero Honda Karizma D.N.A in India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda Karizma price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal city commute. The Karizma Bike has a neat look along with a great rev-up and acceleration. Take a few minutes to read the new Hero Honda Karizma Review here!

The Hero Honda Karizma may be the most modern bikes presently on Indian roads today. Until you have really seen it with your own eyes you don't know what it means to see a zKarizma. The extremely streamlined angles and body frame, the stunning colors, the powerful 225 cc engine, the magnesium alloy wheels, and Hero Honda reliability makes the Karizma a bike to covet. Looks

 Diamond shaped tubular chassis  18 inch black magnesium alloy wheels front and rear  Chrome Plating and Gold Colored pipes for the black Powder Coated Exhaust  Trapezoidal Headlamp  Knee recesses on the sleek 15 lit tank enhances looks  amazing front panels  crystal clear headlamp  black powder coated exhaust pipe  three pod instrument cluster with a digital fuel indicator Control

 Users reach speed of 120-130 kmph easily  Transmission system is sport bike like shift pattern - 1 Down, 4 Up  Partly digital console  Ignition : Digital - CDI (AMI-Advanced Microprocessor Ignition System)  Electric start  Powerful throttle  Stupendous braking  17 bhp at 7000 rpm Comfort

 The suspension has been so set as to provide minimal backaches

Ch Ku r ~53~ HERO HONDA  Ride for the pillion is equally comfortable as the rear suspension is generally set perfectly for the average Indian pillion  Front disc and rear drum brakes perform without the least glitch or complaint  High quality front and rear suspension gives an extremely comfortable riding experience  135 mm wheelbase adds stability  Superlative riding experience  Excellent cornering manners Mileage and Economy

 Average mileage is about 40 kmpl in city conditions  CV carburetor with a variable ignition system that alters timing based on engine power and throttle position  Sleek looking tank holds 15 liters of petrol

Product Range and New Models: The Company's product range includes "Splendor+" which is the largest selling motorcycle brand in the world with over 10 lacs vehicles sold in 2008-09. A cumulative over 40 million customers are the real foundation of the company's strength. The total shall soon cross the 7 million mark. Its volumes have been growing at a strong pace of 40% p.a. over the last five years. The Company launched a new 100 cc model "Passion pro" in June 2008. The motorcycle is focused on style and contemporary design, compared to the Company's earlier motorcycles that were focused on utility and/or style. "Passion pro" has received an excellent response from the market and has established itself well, with sales reaching a level of 29000 units in august 2008, within just three months of its launch.

PRICING

Pricing is a important component of marketing mix of the firm. Determining the prices of different products of a firm is very difficult task of the marketing manager. Price denotes money value of a product. If represent the amount of money for which a product can be exchange. In other words, prices represents the money which the buyer pays to the seller for a product price represent the exchange value of goods and services in terms of money. Price is all around. Price factor has very well been touched by the manufacturers. The pricing strategy of the company is very set. they price their product according to the cost of production and also by keeping an eye on the price of the competitors of that segment and demand of the product in the market. A pricing strategy that ensured an average manufacturer margin that game dealer an adequate return and created a reputation with consumers like ³a company

Ch Ku r ~54~ HERO HONDA selling a good quality product at a reasonable price. Industry focus them selves the low cost producer with good quality and aimed to maintain the price advantage in every market of two wheelers. Hero Honda group ensures an easily affordable pricing through excellent transportation to common man. I fixes customer centric pricing that provide customer total satisfaction. Hero Honda¶s pricing objectives are: List price, Discount , Financing schemes, Credit terms , Maximize profits Hero Honda group ensures an easily affordable pricing through excellent transportation to common man. It fixes customer centric pricing that provides the customer with total satisfaction.

DISTRIBUTION

HERO HONDA HAS direct contact with the dealers. There are no middlemen involved. The dealers directly sell to the customers. The channel is of 1st level which has only the dealers as the link between the customers and the company.

Distri ution Channel

Manufacturer

Dealer

Sub-dealer Customer

How Promptly The Work Done? The dealers keep in contact with the manufacturer or the head office or the regional office. As the order fax reach the manufacturer, as in Delhi it takes only one-nights time of transit from the manufacturer to the dealer. The dealers in far off places like in Assam, South India and others, it takes a maximum of 7 days to reach the placed order due to the transit. Basically, the delay of delivery of the order is basically due to the transit time. The transit time in near places is not more than one night. How The Transit Done? The manufacturer's have their own transportation facilities. The manufacturers have trucks which can load 18-25 units of bikes at a time, individually. When the units are dispatched from the factory, or manufacturing it, it is in its standard form and accessories like seat cover, handle cover, back-looking glass and others are not part of the standard unit of the two wheeler of Hero Honda. The transportation trucks straightway reach the warehouses of the dealers. In case the warehouse of the dealer is not there then the trucks straight away come to the dealers showroom where they usually have some place for storing the stock as in the case of Daryaganj dealer. The Daryaganj dealer¶s stock is stored in the place

Ch Ku r ~55~ HERO HONDA Just behind the show room. For this particular dealer the transportation cost to bring the units from the warehouse to the showroom is saved and thus the distribution cost is saved. But there are dealers like in Green Park, this dealer does not have their ware house nearby to the showroom which means that this dealer has to keep their own transportation system to bring the units from the warehouse to the showroom which is not cost effective. The sub-dealers usually hire the trucks to get the units delivered to their outlets. Sometimes the dealer¶s truck is used by the sub-dealers to carry the units to their outlets on goof faith. If the sub-dealer is the part of the same dealer then the transportation charge are less and if they hire it then the cost is high for the sub-dealers. What Does Customer Want? The customers of Hero Honda, according to the Asst. Manager (Sales) are very particular about the colors that Hero Honda offers in its wide variety of scooters. He said that the customers are very much aware of their purchase. Gone are the days when the sales people could influence the buyer to buy a particular product. Almost 90-93% of the customer, whoever comes to the showroom. Usually comes after he/she had made a decision. So, the work of the sales person is less. The rest 7-10% have some doubts with regard to the purchase of Hero Honda. It is here, where the sales persons have to do some work in convincing the customers about the scooter. The sales person in this regard convey the customers about the mileage, strokes and also the parameters that the customers enquire. When Do They Sell More? Hero Honda scooters peak season selling state from the month of April, just after the budget and after the month of November the sells become slack. This is mainly due to the people think that the budget can reduce the prices and moreover the budget usually brings in a difference at Rs. 1000 - 1500. This is an important factor for increasing in sells. Usually in the month of November the manufacturer comes with re-modeling and also new launches. People wait till the month of April to see whether the prices are slashed or not. How Is The Price Determined According To The Change? Manufacturer, on the basis of the cost of production determines the price and the factors like tax and others. Usually the sales tax on the two wheelers is 8% but in Hero Honda it 4%. This is because Delhi Government has found out that the pollution from Hero Honda is very less due to the catalytic converter which every model of Hero Honda have. The government has identified that by using the catalytic converter Hero Honda is helping the environment which is a social cause. Hero Honda Bikes not only have market in India, but also in abroad. To maintain the differences in market of the different companies it takes the help of the local manufacturers or the dealers outside for the distribution of their scooters smoothly. How's The Relationship Between The Manufacturer And Dealers? Improvement of sells is the first and foremost concern of the trading people. He said that they are given the dealership to sell the products of Hero Honda and the relationship is better when the sells are

Ch Ku r ~56~ HERO HONDA more. On an average, sells around 5 to 6 scooters per day. The company representatives keeps in contact with the dealers over telephone and keeps an pressuring the sales managers of the dealers to improve the sells. The Dealer have 2 sales staff in the showroom and 7 more sales staff who moves around their sells territory on the call of the customers. The representatives of the company visit the dealers weekly or fortnightly. As per Mr. Ayub, the representatives of the company keeps on pressuring the dealers to increase the sales as in the case of the aforesaid dealer. Earlier they use to sell around 5-6 scooters a day and now they are asked to sell around 8-10 scooters on an average per day. The company keeps a very good relationship with the dealers. As the launch of the new models the company calls on all the dealers for meeting. In these meetings the company executives discusses the strategies that the company will follow during the forthcoming months. The company accordingly asks the dealers to change their strategies. Things like the target of sales sells for the forthcoming year, what should be the attitude towards the market, the company's forecast and many such issues are discussed in these meetings. The company also meets with the dealers during the time of new launch. Here the company invites the dealers and also the sub dealers to train them about the new product that is going to be launched. The company gives the dealers and sub dealers mechanics a training of around 15 to 20days. The most important fact about the dealers of Hero Honda is that they organize training programmes for the local mechanics who doesn't have any affiliation from any brand two-wheelers. These mechanics who are running their business in very small scale are invited to the training camps of the dealers at the launch of new models. The dealers improve the relationship at personal level with these local garage by giving them gifts. Sales forecast So depending on the market demand, the dealers place the order. The dealers make a sales forecast taking into consideration the market demands the past years sales in the same month, and also whether the present season is a peak slack season. Once, the sales forecast is made, then the dealers place the orders depending on the forecast.

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Advertisement, local events sponsorship and promotions and inviting a prominent personality for the inaugural or first like delivery function would contribute effectively in generating a wider local interest and attention. Hero Honda¶s latest DKD commercial its two brand starring its Ambassador and India¶s heart throbs, Hritik Roshan and priyanka chopra, truly reflects the multi fact roles that today¶s new generation plays. The commercial reflecting the charisma and vibrancy of these two stars, takes Desh Ki Dhadkan to dazzling new heights. It is young, colorful and vibrant and represent the icons of contemporary times. And it will go a

Ch Ku r ~57~ HERO HONDA long way in strengthening the leadership status of the product by the mile. The new commercial is powerful film repeat with an impressive storyline. The effort to pack the story, drama and impact in just 60 seconds was phenomenal challenge itself. The idea was born itself. The idea was born out of the very essence of ³Hero and Stars´. Keeping in mind would cause on the drama and impact it would cause on the audience. It is a commercial packed with action where today¶s heart throbs, Hritik roshan and Priyanka Chopra, are seen tackling new roles. The story being in a field adjoining a hill with Hritik and priyanka on Hero Honda bikes and Pleasure respectively. Both Sameer and Aditya win lifetime opportunity act with Hritik and Priyanka, the two star heartthrobs of millions in India and all four will be seen in action in the new commercial DKD. These are some of the Slogan for every product (Bike) and these are following:CD-100 : Fill it, shut it, Forget it.

Celebrity Endorsement: Hero Honda has roped in film actor Hrithik Roshan, Priyanka chopra, Mohammed Kaif, Harbhajan Singh, Zaheer Khan, Yuvraj Singh and Virender Sehwag as its brand ambassadors. Announcing the formation of the Hero Honda `Team Ambition', Mr. Pawan Munjal, said, "Indian Cricket and Hero Honda have both made the nation proud and helped the world recognize India's potential. The `Team Ambition' has many similarities in personality with Hero Honda, such as `splendor of performance', `passion to excel' and `ambition to win". In their role as brand ambassadors, the `Team Ambition' would soon star in Hero Honda's new commercials. As part of the association, Hero Honda will also find prominence on the bats to be used by Yuvraj Singh and Zaheer Khan in the forthcoming cricket events.

Sourav Ganguly, who has been associated with Hero Honda since 2000, said, "Through Team Ambition, we are looking forward to communicate more directly with over 6 million Hero Honda customers in India and the millions more added every year." Says Mr. Anil Dua, Senior Vice-President, Marketing and Sales, Hero Honda, "Hero Honda has been promoting cricket for over a decade now. Starting with the memorable Hero Cup in 1993, we have adequately benefited through the promotion of this national fervor. Cricket is one sport which binds our entire nation and is, perhaps, the largest platform in the world, enabling companies to communicate with millions of consumers in the shortest possible time." The `Team Ambition' would also provide coaching and guidance to the budding talent in the country and support cricket projects undertaken by Hero Honda in India and abroad, a company release said. Hero Honda will keep up its promotional activities with emphasis on cricket and entertainment. The company claims that its Desh Ki Dhadkan campaign featuring brand ambassadors priyanka chopra and Hrithik Roshan has received a very good response and

Ch Ku r ~58~ HERO HONDA helped build the company's image. Last year, the company spent around Rs 90 crore on advertising and marketing.

SALES PROMOTION

A fundamental concern of any customer during the purchase Of a double product is the quality and provision of efficient service. After all queries on product quality, performance, features and benefits have been satisfied, the customer invariably focuses on the service factor for the product as the end objectives is to ensure trouble free operation. In this respect servicing acquires paramount importance and Hero Honda¶s focus and emphasis on these key result area have been instrumental in establishing its superiority and technological edge in the market. The host of training programmes and relationship enchantment activity additionally backs the spates of servicing camp, organized throughout the country. The active support of servicing and co-operation rendered by the dealer in the form of logistics and infrastructure further aid in making such programmes highly collecting information meaningful and valuable. They are doing free check up camps reinforce customer trust. Service advisor¶s from a customer about his satisfaction level after the servicing of their bike. For the promotion of products the Hero Honda dealer rally. Hero Honda is organizing so many events in sports, cultural programmes, film -festivals etc for the promotion of the product eg. Hero Honda NKP salue Challenger Cricket Cup brings new talent to the force, MALTA Junior Tennis Tournament, Hero Honda social¶s Commitment rehabilitating children affected by violence, operational, Relief, donation for drought relief, Rota Trade Mela 2007, Road Show, Training programmers to enhance quality of service, free back up camps reinforce customer¶s trust, ride safe programmes held for Delhi Traffic Police, Mobile Revolution in servicing etc. The powerful benefits of test rides, special promotions and communication drives to draw in the initial customers, preparation of Accurate customer information forms to create a customers database, offer of finance facility and active steps to impart specific transiting at the dealer¶s sales and services levels would be essential steps to achieving the brand and the company objectives. Mr. Uppal also touched upon the servicing policy for passion and cautioned the invitees to remain alert for substitution in Hero Honda brands among its customers. The sales increase would have do be targeted from new customers and not its existing ones. The key attitude that would constantly contribute towards sales would be total and passionate commitment.

Ch Ku r ~59~ HERO HONDA

PUBLICITY

For the purpose of publicity Hero Honda is always organizing different events, etc. and they are always inviting celebrities from film, sports, media, politics, etc. There are some of event and parties are as follows: The Hero Honda stardust millennium Honours and BFJA awards for Bengali films. In a gesture that honors and salutes some of the finest talent in south Indian Cinema. Hero Honda also security sponsored the 20th Cinema Express Awards. The sponsorship of the women¶s World Cup in 1997 came next, then the ICC Cricket World Cup 2004. Hero Honda, the largest two wheeler leader in Indian sponsored the 21st Cinema express Awards. Marketing Convention 2006. They are priyanka Chopra, Miss World, Lara Dutta Miss Universe, Diya Mirza Miss Asia Pacific, Sourav Ganguly Indian Cricket Captain, Daler Mehndi, Mr. Harsha Bhogle the famous cricket commentator etc. Dandiya programme at Kota and Banswara. In this Ms Sunita Rao, the popular singer entertains at the festivals at the Dandiya Programme. Thrill and the excitement at the Hero Honda Master Golf tournament. In this tournament Kapil Dev, virendra sehwag, Pronoy Roy, Milkha Singh and so many celebrities were present. Galaxy of stars add to the glitter Surat rang 2008. Pinaz Masani, the famous gazhal singer, Kavita Krishnamurthy the famous play back Singer, Shibani Kashyap the pop singer are the main highlight of this programme.

Hero Honda sponsor¶s 26th Cinema Express Awards and the main celebrities of this programme are evergreen Hero Devanand, Film Makers Hero Honda sponsor Army ordnance Corp Motor Cycle Expedition. Joy of buying At Hero Honda, we believe in providing the best of service, as reflected in our corporate µWe Care¶ philosophy. An extension of this is the passport programme, popularly known as µsuhana safar¶. This unique programme aims to build long-term relationship with customers.

The Passport Programme membership benefits customers in a number of ways:-

Ƈ For new customers, a change to win a Hero Honda Splendor or Rs.50,000 in cash; and a one ±year accident incident insurance cover worth Rs. 1 lakh

Ƈ Special rewards and discount on accumulation points

Ch Ku r ~60~ HERO HONDA Ƈ Invites to exclusive local events

Ƈ Attractive discount on spare parts

Ƈ And much more to come

REVIVING UP TO ENTICE BUYERS With manufacturer offering attractive finance schemes, now is a good time to buy, says Dr. Pritam Singh. TWO- WHEELER sales have been increasing thanks to the continue thanks to the continuing upward swing in motorcycle sales. To make sure that this happiness continues and that they grab the largest share of the pie, manufacturer have been offering the customers finance schemes. Hop across to the Hero Honda dealership. The industry leader is offering finance option from ICICI, Centurion Bank and Tata Finance All normally offer a 9.9-percent rate of interest on two-wheeler finance, though there are other schemes too. Keeping in mind the ongoing festive season, Hero Honda is offering a Special 8.4-pecent rates of interest on two-wheeler finance Another schemes is the low EMI schemes where one has to pay just 777 every month(for 48 month). But Hero Honda offers this for on 65-70 percent of the total amount against the usual 90-percent. Bajaj has tie-up with Centurion Bank, apart from its own two-wheeler finance. The prevailing rates are 11.9 percent against a finance of 8590 percent of the total value. Kinetic also has its own finance arm besides its dealer its dealers can get your vehicle financed through Tata Finance. The rates are 9.9 percent but there are many varying rates of interest available. There is a heavily advertised schemes of 2.99 percent rate available on a limited period. TVS offers the same 9.9 percent rate of interest. yamaha has a tie-up with the Association apart from the other option. Finance is easily available for up to 85-90 percent of the total value and the rates are 9.9 percent. The interest rates vary according to the period of loan and the amount.

BUSINESS GROWTH

Hero Honda Motors Limited is a Star which has high market share and a high growth rate. They developed fuel efficient motorcycles at a time when everyone was producing 2-stroke motorcycles. This made them gain market share at a rapid pace and helped them to become the market leaders in the motorcycle segment. Having set its focus on customer satisfaction, the company is determined to provide products and services that meet the quality, performance and price aspirations of their customers. HHML wants to provide its customers with value for their money. Hero Honda's motorcycles account for over 60% of the entire motorcycles market. The various brands of Hero Honda are Splendor, CBZ, Passion, karizma, and Acheiver. Splendor enjoys nearly 30% of the total motorcycles market.

Ch Ku r ~6 ~ HERO HONDA

CORPORATE SOCIAL RESPONSIBILITY (CSR) STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots. The Company believes it has managed to bring an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream

The Foundation has adopted various villages located within vicinity of the Hero Honda factory at Dharuhera for integrated rural development. This includes:

y An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community. Installation of deep bore hand pumps to provide clean drinking water. y Constructing metalled roads and connecting these villages to the National Highway (NH -8). y Renovating primary school buildings and providing hygienic water and toilet facilities. y 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.

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co- educational school with over 1200 students and 61 teachers. The school has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room, a well-stocked library and a computer centre.

Raman Munjal Memorial Hospital

Ch Ku r ~62~ HERO HONDA Multi-specialty hospital equipped with the latest diagnostic and surgical technology. The Raman Munjal Memorial Hospital provides healthcare to the rural population in and around Dharuhera, and also caters to accident and trauma victims driving along the Delhi- Jaipur highway

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational Training Centre. So far 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.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults.

Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by the Foundation by providing financial help and other support to the families.

Rural Health Care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health care services to the local community. Free health care and medical camps are now a regular feature in the Hero Group's community outreach program.

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a high-quality service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise

Ch Ku r ~63~ HERO HONDA respectful of its environment and respectful of the important issues. Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind.

"We must do something for the community from whose land we generate our wealth." A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our environmental performance on a continual basis, as an intrinsic element of our corporate philosophy.

To achieve this we commit ourselves to:

y Integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals, where viable and strengthen the greening of supply chain. y Continue product innovations to improve environmental compatibility. y Comply with all applicable environmental legislation and also controlling our environmental discharges through the principles of "alara" (as low as reasonably achievable). y Institutionalise resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers / vendors, while promoting their involvement in ensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exceed customer's growing aspirations through:

y Innovation in products, processes and services.

Ch Ku r ~64~ HERO HONDA y Continuous improvement in our total quality management systems. y Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who may be affected by its operations. We believe that the safe work practices lead to better business performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

y Integrating safety and health matters in all our activities. y Ensuring compliance with all applicable legislative requirements. y Empowering employees to ensure safety in their respective work places. y Promoting safety and health awareness amongst employees, suppliers and contractors.

Continuous improvements in safety performance through precautions besides participation and training of employees.

The Market Leader

Today Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record worldwide. Hero Honda is at present the largest-selling Indian motorcycle and the most fuel-efficient in its category - the outcome of Hero Group's foresight and another classic example of how the Group strives to provide the customer with excellence and satisfaction.

Hero Honda became the first company in the country to introduce four-stroke motorcycles and set the standards for fuel efficiency, pollution control and quality. It has an excellent distribution and service network spread throughout the country. Hero Honda is the market leader in motorcycles, with sales of over 2 million motorcycles and a strong market share of 48% during 2003-04.

Ch Ku r ~65~ HERO HONDA 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. The Company focuses on providing "Value for Money" through its pricing strategies and after sales services.

SWOT ANALYSIS

Strengths:

‡ Technological support from Honda Motors, Japan. The company has a deeply penetrated dealer network. The company provides good after sales service through its well established dealer network.

‡The company enjoys a huge market share and well established brands like Splendor+, Passion+, CBZ-xtreme etc.

Weaknesses:

‡ Hero Honda depends on Honda for new products and this is a big weakness.

‡The company doesn't have a product catering to Rs. 25,000 - Rs. 35,000 segment, and the company might suffer on account of this as the imported motorcycles and foreign players' motorcycles are expected to cater to this particular segment of the market. This can result in fall in the market share of the company.

‡The company imports about 31% of its spare requirements. This makes the company vulnerable to the import policies of the government. It also exposes them to the exchange rate risk.

Opportunities:

‡ The motorcycle segment is growing at the rate of 33%, which provides a great opportunity for the company to cash on.

‡ Also it is experiencing a shift in the customer preference for 4stroke mobikes (automatic scooters). This again provides an

Threats:

Ch Ku r ~66~ HERO HONDA ‡ The technical collaboration with Honda is valid only for a period and this is a serious threat as they have been dependant on Honda for technology. Also Honda has set up its 100% subsidiary in India which has start producing motorcycles from 2008. This has further increased the competition.

‡ The company has plans to foray into the scooter segment, which can also be a major threat for the future prospects of the company. The reason being that the consumers are shifting from scooters to motorcycles and at this hour moving from motorcycles to scooters doesn't sound logical.

Hero Honda in the Rural Market. In the rural market, consumers prefer motorcycles for their sturdiness and ability to sustain bad road conditions. The stricter environment norms such as the euro emission norms are forcing companies to install catalytic converters in the existing vehicles or go in for four- stroke engines to reduce pollution. This has added up to the costs of scooters while most motorcycles are in tandem with these new norms. The success of the motorcycle is more of a rural phenomenon. According to analysts, the entire age profile of the consumer has undergone a change and the buyers / target consumers are now younger. ``So, in effect, the entire demographics now are in favour of the motorcycle segment. It is not unusual that a large chunk of motorcycle sales are from the rural areas. Hero Honda, derives 60 per cent of its sales from the rural segment.´

In order to promote its brand in the rural market, Hero Honda has recently launched a marketing initiative in towns with a population of less than 50,000 in Uttar Pradesh. The initiative would involve a mobile showroom and workshop, through which people will be able to gather knowledge about the vehicles and also buy them. The concentration will be mainly on promoting the company's two major brands: Splendor and Joy. With these initiatives, Hero Honda is targeting sales of 1.3 million two-wheelers this fiscal. The festival season has also showed an improvement in sales for Hero Honda despite the current downtrend. A factor driving sales could be the company's offering of a two-year warranty (for which it claims to spend approximately Rs 10-15 crore annually) and its hugely successful consumer loyalty programme. Hero Honda, makes practically nothing at its plant. The only operation done at its Dharuhera works other than the assembly of motorcycles is engine assembly. Hero Honda has an enormous advantage as in it has a product for each of the market segments. The

Ch Ku r ~67~ HERO HONDA CD 100 is the basic no-frills model with fuel efficiency and reliability as USP; the CD 100 SS is the upgraded durable model positioned in the rural market; Sleek the glamorous bike for the urban youth and the Splendor is the premium product with better features and targeted at the urban market. Analysts believe that the biggest advantage Hero Honda enjoys is its brand image as a fuel- efficient bike. The company expects to leverage on the strong brand image when its earliest customers start looking for replacements. A recent research report says that on the back of large volumes, Hero Honda has developed strong vendors like Munjal Showa, Hi-Tech Gears, International Instruments and others from whom it sources more than 80 per cent of its components. This has also helped the company to lower its import content. Hero Honda, makes practically nothing at its plant. The only operation done at its Dharuhera works other than the assembly of motorcycles is engine assembly.

Rural marketing - challenges and opportunities

The Indian rural market with its vast size and demand base offers great opportunities to marketers. Two-thirds of countries consumers live in rural areas and almost half of the national income is generated here. It is only natural that rural markets form an important part of the total market of India. Our nation is classified in around 450 districts, and approximately 630000 villages which can be sorted in different parameters such as levels, accessibility, income levels, penetration, distances from nearest towns, etc.

The success of a brand in the Indian rural market is as unpredictable as rain. It has always been difficult to gauge the rural market. Many brands, which should have been successful, have failed miserably. More often than not, people attribute rural market success to luck. Therefore, marketers need to understand the social dynamics and attitude variations within each village though nationally it follows a consistent pattern. While the rural market certainly offers a big attraction to marketers, it would be naive to think that any company can easily enter the market and walk away with sizable share. Actually the market bristles with variety of problems. The main problems in rural marketing are: A Physical Distribution B Channel Management B Promotion and Marketing Communication

The problems of physical distribution and channel management adversely affect the service

Ch Ku r ~68~ HERO HONDA as well as the cost aspect. The existent market structure consists of primary rural market and retail sales outlet. The structure involves stock points in feeder towns to service these retail outlets at the village levels. But it becomes difficult maintaining the required service level in the delivery of the product at retail level. One of the way could be using company delivery vans which can serve two purposes- it can take the products to the customers in every nook and corner of the market and it also enables the firm to establish direct contact with them and

There by facilitate sales promotion. However, only the bigwigs can adopt this channel. The companies with relatively fewer resources can go in for syndicated distribution where a tie-up between non-competitive marketers can be established to facilitate distribution. As a general rule, rural marketing involves more intensive personal selling efforts compared to urban marketing. Marketers need to understand the psyche of the rural consumers and then act accordingly. To effectively tap the rural market a brand must associate it with the same things the rural folks do. This can be done by utilizing the various rural folk media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals, melas and other activities where they assemble. One very fine example can be quoted of Escorts where they focussed on deeper penetration .In September-98 they established rural marketing sales. They did not rely on T.V or press advertisements rather concentrated on focussed approach depending on geographical and market parameters like fares, melas etc. Looking at the µkuchha¶ roads of village they positioned their mobike as tough vehicle. Their advertisements showed Dharmendra riding Escort with the punchline µJandar Sawari, Shandar Sawari¶. Thus, they achieved whopping sales of 95000 vehicles annually. One more example, which can be quoted in this regard, is of HLL. A year back HLL started µOperation Bharat¶ to tap the rural markets. Under this operation it passed out low±priced sample packets of its toothpaste, fairness cream, Clinic plus shampoo, and Ponds cream to twenty million households. Thus looking at the challenges and the opportunities which rural markets offer to the marketers it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage.

COMPARATIVE MARKETING STRATEGIES

Hero Honda has 35% of Honda¶s sales in the world and Honda Motor of Japan is proud to be associated with Hero Honda. As a staunch supporter, with technology and brand support from the global power house, Honda Motors, Japan, would immensely boost the business prospects

Ch Ku r ~69~ HERO HONDA in the country despite the onslaught of serve competition in the market place. µ it is our avowed aim that Honda Motors¶, scooters and Hero Honda¶s motorcycles would together corner 65% of the market share of two wheeler in the country¶. Primary among these were the National Customer Survey by IMRB with a record 25,000 interviews, making it the largest two-wheeler survey. This way followed up by the National Customer satisfaction survey in September 2008. In keeping with ³Top Gear´, the company also reestablished customer finance tie-ups with Tata Finance. In the present Scenario, this is available in 170 towns and to 232 dealers a leading to a current volume of around 15000 per month. This represents as much as 40% of the total customers financing . The dealers finance tie-ups with Citibank and Centurion Bank. The current sanctions to as many as 189 dealers were worth Rs.110Crore, he revealed. There had also been no opportunistic ad hoc price increases. The company also took positive steps to facilitate the dealer ³Authorized representative service extension policy. The corporate commitment to ³we are´ and the company¶s emphasis on environment protection also resulted in opening the first effluent treatment plant at a dealership. New service training centers were also established at Delhi and Chennai. While quarterly product reviews were conducted with the factories, a unique programme of joint visits with quality department land Japanese staff was also introduced. On the spare parts front, multiple increases in spare policy was also overhauled and new, innovative actions were taken leading to a volume of over 6,000 bikes in the current year itself. The company also associated itself actively with sponsorship of armed forced rallies, notable among them being the Kargil Rally and the AOC Rally. While this built up its relationship with premier customers, the initiatives taken on other priority fronts were equally effective. Showroom standardization was effectively detailed. World event sponsorships also helped the company to achieve global exposure for its brand. The company¶s entry into the tournament events sponsorships was equally successful. Its sponsorship of Hindi Cinema awards(Millennium Honors held in Mumbai in January 2008, was followed up by sponsorship of Bengali cinema (BFJA Awards ± Calcutta, August 2008) and then South Indian Cinema (Cinema Express Awards- Chennai, November 2008).] A laudable achievements was also the signing of the two top Leaders, veritable µDesh ki Dhadkan¶ in the field of sports (Cricket), and entertainment (Hindi films), three years. Priyanka chopra and Hritik Roshan the two stalwarts in their fields are also designed as brand ambassadors for Hero Honda for a period of three years. The national Launch of the Hero Honda passport programme specifically targeted at enhancing customers relationships, the implementation of the Hero worldwide safety riding campaign at dealer Level, To streamile operations and sales administration, the company also introduced the service excellence awards for SSP¶s decentralized the settlement of free

Ch Ku r ~70~ HERO HONDA service coupons reimbursement, reorganized the Dharuhera Service Center as the National Training Center, with latest technology to provide specialized advanced courses. Dealer level implementation of the integrated dealership software package was also another significant activity undertake. The major success were the volume and revenue increase of by over two and a half times, and a market share increase in motor cycles, from 52% to from 60% and in 2 wheeler, a doubling from 36% to 40%. For the current year ending 2009, the company would achieve a volume of over 2 million bikes under project ³OM´ and revenue in excess of Rs.3000 crore. The spare parts business itself was striving for revenues of Rs. 245 Crores. Service reporting at all authorized outlets would exceed the ten million mark. The market perception inevitably revolved around the admirable achievement of Hero Honda as the No:- 1 two wheeler company in India. It revealed that the total customer base of the company on a world wide basis had crossed the 4 million mark. The road envisaged in the light of these facts was just an ambitious with the emphasis being to sustain a growth rate of 15% per annum as well as be alert and responsive to new development particularly the resurgent and aggressive competition with new players and bikes as in addition to the China / WTO impact world trade organization. Hero Honda¶s own marketing initiatives as well as the emerging potential of second hand motorcycle business. Key aspects in accessories business, social commitment and socially relevant programmers, and communications drives were also pointed out. Specific brand building and customers relationship exercise like the passport programme, satisfaction survey, safety riding, campaign, service extension assistance the various multi-levels training and development programmes, seminars and workshops, CBZ club, product quality reviews and field quality visits were all essential and indispensable ingredients to achieves the required results. And for this the most vital input was inevitably the passion from one and all. DEALER The advantage of efficiency to keep prices reasonable and increase customers Loyalty Is a vital components in the company¶s priorities. With 405 dealers, 178 SSPs and 15 stockiest, the company¶s strength in terms of dealership and service points for the various brands in an achievement that was laudable by all counts. The dealers to take the company to newer heights, and fulfill the declared version of the company that expectation were essential in any relationship building process and for this constants evaluation and review of the essential internal components was impressive on the part of dealers. Emphasizing on the urgent need to begin the marketing initiatives on a war footing with immediate action. This was one mantra that was imperative in today¶s market environments. And the second mantra, is to stress the customers. It was thus vital to continue to strengthen the existing customers bonds and relationship and enhance the brand loyalty factor. Importance of small gestures like services due letter cannot be overemphasized. The

Ch Ku r ~7 ~ HERO HONDA effort at all times must to be provide the customers with total satisfactions on servicing. With 90 dealers had already attended the training programmes, the remaining would also be able to derive the benefits to training through a phased training programme throughout the year. The training would also be cross board, covering dealers, dealer associates, service technicians, and senior managers. The chairmen also had praise for all the dealers Acknowledging their hard work and continuous efforts he said, ³ you are the real front end of the company with the customers and you all deserve compliments. Some of you enjoy a relationship of over 15 years with the company and same dealers have joined recently. Hero Honda dealers have continued to demonstrate their spirited enthusiasm in aggressively promoting the Hero Honda product range. Though innovative initiatives the efforts at utilizing local events, function and programmes to maximize the impact of the companies commitment have been highly beneficial in all fronts while local and regional interest in hero Honda brands in generated to high Level, the awareness and the subsequent appreciation for the company¶s commitment to customer¶s satisfaction through outstanding standards, state of the art technology and the brand quality that is awesome in features as it in benefits is widely and skillfully generated. The strategic display of products also further enhance the approval accorded by the enthusiastic on lookers and visitors at local shows.

Hero Honda vs Bajaj (2 wheeler market INDIA)

Hero Honda's strong hold on the domestic motorcycle market is getting a tough challenge from rival Bajaj Auto.

Bajaj has been regaining its lost ground after it did a u-turn and was forced to refocus on the 100cc segment. Bajaj¶s volumes were crashing miserably after it announced its intention to exit this segment. The new strategy appears to be working well for the company as its market share in this big-volume segment has been steadily increasing. The under-125 cc segment (mainly 100c) enjoys the lion's share of the domestic motorcycle market and commands 74% share of total industry sales. The segment is dominated by Hero Honda through its old 100cc warhorses Splendor and Passion models, while other players, including Bajaj, have mainly been on the fringes. However, Bajaj's decision to position its Discover model for this segment is yielding rich dividends. Numbers for 2009-10 show that while Hero Honda still dominates the under-125 cc segment, it has been losing market share to Bajaj Auto after the launch of the Discover 100cc in July last year.

Ch Ku r ~72~ HERO HONDA Hero Honda's share fell close to 6% to 74.6% at the end of the last fiscal from 80% at the end of 2008-09.Bajaj's share increased to 17%,up from 10.5% at the end of fiscal 2008- 09.While,Bajaj's volumes are rising steadily in the under-125 cc segment, with numbers going up by 115% last year (9.28 lakh units),Hero Honda saw a growth of 23% (40.55 lakh).

Splendor and Passion, the company's mainstay brands, were old bikes and thus faced a threat from newer models. "We do not see them as old brands as we have been constantly rejuvenating them. In any case, we are getting good sales volumes from them and thus feel that we have no reasons to worry.

But Hero Honda has other reasons to worry too. While it is losing grip on the entry level bike segment, rival Bajaj has been going strong in over 125cc segment, with around 50% market share, thanks to its Pulsar brand of motorcycles. This segment that provides relatively higher profit margins is crucial and has been growing at a rapid pace.

Hero Honda Hunk Vs. 150cc DTSi While Here Honda is world¶s leading bike maker, Bajaj is leading Indian bike marketer. There certainly lies so much of a difference between the two. Honda has been there for long in the bike market and is known for service as well as reliability and Bajaj has been an innovator. Every now and then it comes with something new and innovative and no doubt Bajaj bikes have mass appeal as well. In the Indian roads 150cc segment motorbikes have gained popularity and is now established market leaders in world of biking because of its awesome performance with reasonable pricing and ease of handling. It was Bajaj who introduced Bajaj Pulsar 150cc DTSi (Digital Twin spark ignition) powered engine with tagline of definitely male. Wonderful marketing caption as analyzed by pundits it created uproar in 150 cc bike segment as a whole. However, Bajaj Pulsar 150cc faced competition from the Honda¶s Hunk model. There is some amount of confusion amongst bike buyers as to what they choose between the two. They can¶t go for a marketing tagline and invest about 60k plus rupees on a bike. So, here is a brief comparison of the two bikes in terms of look, performance, reliability, pricing & more.

Looks: Hero Honda Hunk model portrays a majestic look with its exquisite style and side skirt in the tanks. Available in four colors of black, blue, silver and red, Hunk has a thump and muscular look with its gold polished front forks and silver finished central section. Equipped with butterfly-like headlight, Hunk reflects a sporty look with everyone stopping by to give a glance as it graces the Indian roads.

Ch Ku r ~73~ HERO HONDA However, it¶s the look of the Bajaj Pulsar that has a unique appeal. The fuel tank is huge with muscle and the design of Pulsar has been tweaked in Japan to make it as one showstopper, and the telltale headlight and the razor edged tail-end of the bike give it a fresh new look. Pulsar also has so many gadgets and hi-fi electronic gadgets to impress. Maybe looks wise, Bajaj pulsar 150cc DTSi seems to better the Hero Honda Hunk 150cc, but again looks are very much subjective, ain¶t it?

Performance: The 150cc engine of Hunk produces 14.2 Ps @8500 rpm and powers 12.98 Nm torque at 6500 rpm. It is here that the 150cc Bajaj Pulsar DTSi engine produces 14.09 Ps at 8500rpm and 12.76 torque at 6500 rpm. Thus the power delivery of Bajaj Pulsar is bit mild in comparison to other bikes in the 150 cc segment. Although the engine is smooth yet it makes noise and loses its smoothness when pushed hard. However, Honda Hunk model does not vibrate even at a speed of 80 kmph. The Bajaj Pulsar 150cc model has advantage of better throttle responsiveness with its feature of Digital Twin spark ignition. Similarly, The Honda Hunk model also responds with a slightest twist. In the Pulsar model clutch works perfectly but guess the gearbox needs some modifications. However, the Hunk model of Honda boasts of a 5-speed gearbox and the clutch is extremely smooth and the gears can be shifted with slightest effort. Pulsar 150cc is known to have notchy gear shifting and the clutch is not as smooth as it is in the Hunk.

Fuel Efficiency: Mileage wise Honda Hunk gives about 55-60 km/L for the economy riding and 65 km/L on a long drive and Pulsar 150cc DTSi gives around 45-50 km/L mileage on economy ride and about 55 on long drive (should it be driven smoothly).

Fuel Efficiency: Mileage wise Honda Hunk gives about 55-60 km/L for the economy riding and 65 km/L on a long drive and Pulsar 150cc DTSi gives around 45-50 km/L mileage on economy ride and about 55 on long drive (should it be driven smoothly).

Brakes: What about the disc brakes of these two motorbikes? Pulsar is equipped with good disc brakes, but it needs to be applied carefully as the brakes of Bajaj Pulsar are extremely sensitive. With applying front brakes too quick in the Pulsar model, it has a tendency to topple over. However, the front wheel of Honda Hunk has a 240 mm disc brake and the rear wheel is equipped with 130 mm drum breaks and that by itself provides with enough stability in the Indian road conditions.

Ch Ku r ~74~ HERO HONDA Dashboard: If you are a fan of digital display panels, I am afraid that the Hunk may disappoint you a little bit. While the Hunk has nicely designed 3 dial dashboard displaying all the necessary details, Pulsar¶s digital console is seductive for many Pulsar fans.

Quality & Handling: Pulsar 150cc DTSi generates more noise, as it gets older; say a 2-year- old pulsar is noisier than a new Pulsar, but hardly there is any such difference in Hunk. However, if the rider is fond of speed drive, his Pulsar 150cc DTSi will get heated up when driven at 60kmph speed for sometime. Yowza! Hero Honda Hunk stays cool no matter speed driving for a considerable length of time. It also means a difference with maintenance. Pulsar 150cc DTSi warrants change in clutch plates more often than a Hero Honda Hunk. So speed handling, Hunk betters the Pulsar.

Comfort: The riding position of Pulsar gives a sporty kind of feeling in comparison to the Hunk model. Pulsar can boast of a plush ride quality with great shock absorbers. There are a few who complain of awkward seating position on a pulsar and that a Bajaj Pulsar 150cc doesn¶t make a pillion rider feel as comfortable, especially if it¶s a female. The riding position of Honda Hunk is comparatively better with raised handlebars and neatly placed foot pegs. The innovative gas-charged rear suspension gives a nice feeling as well. Additionally, the cushioned seats of Hunk model are extremely comfortable for long distance ride. The front seat of the Hero Honda Hunk model is separated by a step from the back seat and makes the pillion feel, male or female, quite comfortable.

Technology: The digital technology incorporated into this high-flying motorbike, Bajaj Pulsar that gives a great satisfaction of a rare and daring riding experience. The bike was developed to ride in any kind of terrain with its nitrogen assisted rear gas shockers; telescopic suspension, optimized and improved exhaust gas system. While again Hunk is also a new age technology driven bike with low fuel consumption. Digital console of Bajaj Pulsar could be no competition, as most new age bikes will have that feature. Again the Hunk is slightly heavier than the Bajajs pulsar 150cc as it weighs 145 kg. Hero Honda Hunk lacks the LED Tail lamps, digital meter and has slightly hard gearbox.

Pricing: As regards price, Bajaj Pulsar 150 cc DTSi is priced competitively at Rs.59,190 (ex- showroom Delhi) and coming to about Rs.68,000 on road. On the other Hero Honda Hunk is priced at Rs.55,000 (ex-showroom) with auto start as optional and costing about Rs.65,000 on road.

Ch Ku r ~75~ HERO HONDA

Verdict: But all said and done, in the 150cc segment on the marketing front Pulsar 150 DTSi kicked off Hero Honda Hunk, but in core biking (by which I mean quality, handling and reliability) Hunk kicked the butt of Pulsar and there is no debate to this. Still better I would say, ask an owner who owns a Hunk for 2 years or so, he is still a happy man to have spent very little on maintenance and the Pulsar 150cc DTSi owner would have changed clutch plates, shock absorbers and is already looking for an upgrade of Pulsar (if he is a diehard Pulsar fan) or some other better model. The spares of Bajaj maybe cheaper than Honda but even Auto Car India acknowledged that Bajaj as a whole suffers from quality problems.

HERO TO TAKE A CALL ON HONDA TIES BEFORE 2014

y 25-year old joint venture with Japan¶s Honda Motor , deadline in 2014

y The Munjals of the Hero group and Honda Motors are equal partners in Hero Honda, India¶s largest motorcycle company.

y Honda decided to establish its 100% subsidiary in India and produce scooters and motorcycles.

y The two partners have also not agreed on the issue like Honda¶s desire that the JV firm join its umbrella parts company Honda Motor India.

CORE COMPETENCIES

Core competencies provide a different approach to strategic development. Instead of maintaining a ³portfolio´ of Strategic Business Units the large organizations need to maintain a set of competencies within the firm which allow it top successfully pursue its strategies. Hero Honda¶s spectacular performance ± its sales and profits have trebled to Rupees 4465 crore and Rupees 462 crore, respectively, in the last three years - have fetched it unending kudos from corporate India. It will definitely continue to be a major player in the motorcycle industry and may even hold on to the top slot for a long, long time to come. Hero Honda is financially robust ± it churns out Rupees 650 crores in cash flows every year and is sitting on free reserves of another Rupees 685 crores.

GENERIC STRATEGY

Ch Ku r ~76~ HERO HONDA Three basic or generic strategies open to any business are: 1. Cost Leadership: This will provide above average profits and managing all aspects of the value chain to reduce costs at every point creates it. A cost leader will sell a standard µno-frills¶ product or service, and is likely to be a large firm reaping the advantages of economies of scale. 2. Differentiation: A strategy of differentiation involves meeting customer¶s needs by outperforming the competition by offering better µvalue added¶ through a unique offer to the customer. While most of the companies gamble with products, HHML on the other hand prefers a tried-and- tested approach. They have Managed top get consumers to buy there premium, technologically ± superior products. Their strategy was to consolidate its leadership and maximize profitability by focussing its resources on a few good products. 3. Focus: A focus strategy may be effective where neither an overall cost leadership nor a differentiation strategy is possible for a firm. MARKET LED STRATEGIC CHOICE/OPTION STRATEGY: 1. They must address the need for power in a new premium category and not in commuter bikes. 2. Consumers are basically looking for fuel efficiency, durability, style, power and price. Its products the Splendor & Passion offer fuel efficiency and durability. Karizma Cbz offers style. Power and price bikes. Now they must look for new products. 3. Not having proper in-house Product Engineering skills have caused Hero Honda dearly. They must hence improve in-house Product Engineering skills. 4. Lack of product creation skills also means that the speed at which Hero Honda launches new products is likely to be less than that of its rivals. Thus to launch new products at a speed in line with their competitors is one strategy that Hero Honda must look in to cash on. 5. The company uses both imported and indigenous raw materials and components to manufacture the motorcycles. As a result, the increase or decrease in the import tariffs has an impact on the company's bottom line. The proportion of imported and indigenous raw materials, components and spares used in FY03 is as follows.

Imported (as % of total) Raw Material & Components Spares 17.90 31.21 Indigenous (as % of total) 82.1 68.78 Hence the company must try to use more of localized/indigenous components. Alternate Recommendations: The two wheeler industry in India is experiencing a shift from Scooters to Motorcycles. In the motorcycles segment, the customers are shifting from 2-Stroke to 4-Stroke motorcycles citing fuel efficiency as a major reason. Hero Honda must catch on this opportunity. This has made the ride smoother for Hero Honda. But this coupled with the low cost of production has attracted MNC¶s to enter India in a big way. This has been signaled by the arrival of Honda Motors, Japan, through its fully owned subsidiary. This has made the motorcycle companies to reduce their prices. Hero Honda has reduced the

Ch Ku r ~77~ HERO HONDA price of its leading brands by an average of Rs. 2300. This price cut is expected to have a positive impact on the demand for two-wheelers. The company is expected to face stiff competition from foreign players in 2010. Hero Honda must hence try to reduce the cost of production and this can be achieved through reduction along the value chain.

CONCLUSION

"Honda, for its part, has also made similar statements. However, industry analysts do have doubts. Says an industry analyst, "Honda's track record in India does lead to some apprehensions. An analysis of Honda's past tie-ups in India would prove so. For instance, Honda exited the joint venture with Kinetic by selling its stake to the promoters and launched a replica of Kinetic Honda's ungeared scooter; its 60:40 ventures with SIEL for cars progressively became a 99:1 partnership and its venture with the Shriram group for gensets ended when it bought out Shriram's stake. This does throw up some questions with regards to the path ahead for Hero Honda." These examples prove that Honda has always wanted to have its own entity, says another analyst. Most of the customers of Hero Honda belong to congested areas. They mostly belong to middle class and are mostly officials/ executives. Thus, we conclude client has targeted the right segment. From the findings we conclude that a customers while purchasing a bike, customers takes into consideration mainly fuel efficiency, good looks, low maintenance cost and reliability. The main competitors of Hero Honda are Bajaj Auto, Yamaha and TVS. The consumer preference basically depends upon wider network and better services. Customers are influenced more to buy a product by advertisements rather than dealer friend¶s or family recommendations.

Ch Ku r ~78~ HERO HONDA

BIBLIOGRAPHY

News and views from marketing division of hero honda.

Ame business magazine.

Auto magazine.

Business india

Financial express

Business line www. indiainfoline.com www. herohonda.com

www.economictimes.com

Ch Ku r ~79~ HERO HONDA

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