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Marketing Strategies of Hero Honda

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Marketing Strategies of Hero Honda SUMMER PROJECT ON “MARKETING STRATEGIES OF HERO HONDA” Efforts By – Dhruv Verma F – 28 A3906410099 ASB Amity School of Business Amity University ACKNOWLEDGEMENT I would like to take an opportunity to thank all the people who helped me in collecting necessary information and making of the report. I am grateful to all of them for their time, energy and wisdom. Getting a project ready requires the work and effort of many people. I would like all those who have contributed in completing this project. First of all, I would like to send my sincere thanks to Mr. Vivek Ahuja for his helpful hand in the completion of my project. Dhruv Verma 2 EXECUTIVE SUMMARY The study, which I conducted on the “In-depth Analysis of Hero Honda Motors Ltd” in the area of Marketing & Human Resource Management has been a very gratifying experience at the outset, the objectives were to cover the whole marketing strategies and Human Resource policies adopted by HHML. The entire report has been effort to do just that. Through out the study I found Hero Honda bikes are very new & use modern technology in their bikes. As a result they give better performance then other bikes in the market & required less maintenance. Hero Honda also provides good after sale service to the customer. Hero Honda has managed to put in spectacular performance going from strength to strength despite increase in competition, the company’s sales have witnessed an up trend, registering an average growth of 42% in the three years under review. Hero Honda has managed to achieve this because of its strong brand image and proven product quality underpinned the performance growth in recent years. Apart from the strong brand “Splendor” the company’s presence across the spectrum of the motorcycle market helped it exploit the growing demand for 4-stroke motorcycles. In view of the increasing competition due to globalization and the expansion of the economy .All industries need to constantly add more attributes and features which consumer wants in two wheelers of their company .In context company had to adopt more innovative and consumer friendly attributes so that there product should be more popular among the customers. Today in this present world the Marketing Strategy of Hero Honda in two wheeler segment of India and are leading as the world number one two wheeler company from the past three consecutive years. 3 The research assigned to was to study the parameter ore the features that effect most of the customer satisfaction in the Hero Honda motors limited & BAJAJ Automobiles .There are many features which effect the two wheeler company but important among all of them are the following :- (1) Fuel efficiency (2) Maintenance (3) Availability of the product (4) Resale value (5) Look and style (6) Image and brand 4 TABLE OF CONTENTS Chapter No. Topic 1. INTRODUCTION • About The Industry • Products 2. RESEARCH METHODOLOGY • Research Objective • Research Design • Data Sources • Primary Data • Secondary Data • Questionnaire Design/Formulation • Sample Design • Limitation of the Research 3. COMPANY PROFILE • History of Hero Honda comp. • S.W.O.T Analysis 4. DATA ANALYSIS 5. FINDINGS / CONCLUSION 6. RECOMMENDATIONS 7. ANNEXURE • QUESTIONNAIRE 8. BIBLIOGRAPHY 5 6 INTRODUCTION The Indian two-wheeler industry is dominated by three players, Bajaj, Hero Honda and TVS Suzuki, who account for 80 percent of the total two-wheeler market. The other players including Kinetic Engineering, LML and others account for the remaining 20 percent of the market. The industry can be divided into three broad segments: Scooters, motorcycles and mopeds. In the scooters segment Bajaj is the market leader, Hero Honda is the market leader in the motorcycles segment and in the segment of mopeds, TVS controls the major chunk of the market. Most Indian players in the two-wheeler industry had been into some kind of strategic alliance, technical collaboration or joint venture with foreign players, mainly Japanese firms. Hero-Honda, is a joint venture between the Munjal- promoted Hero Group and Honda Motor Co. of Japan; TVS-Suzuki was an alliance with TVS and Suzuki Motors (till September 2006); Bajaj-Kawasaki a joint venture between Bajaj Motors and Kawasaki; and Yamaha-Escorts, a joint venture between Escorts and Yamaha Motor Corp. (till June 2007). Indian automobile market, be it the two-wheeler segment, the three-wheeler segment or the car segment, is yet to come to a stage where all the models are developed indigenously. For years now, Indian companies have been dependent on their foreign joint venture partners or collaborators to provide them with the technical know-how. This trend too is in for a change. Leading the pack in this arena is Bajaj, which has been Successful at designing models in-house. Bajaj's Safire and Spirit, have been able to bag the scooter of the year award for 2006 and 2007 respectively. In fact, its Spirit was adjudged the "Indigenous product design of the year" for the year 2000. The recently launched Pulsar from the Bajaj stable is yet another home-grown product, albeit in tandem with Japanese design house, Tokyo R&D. Bajaj has been laying increased emphasis on its R&D so as to be able to launch new products to tap the markets at all possible price points. Other companies too are adapting the strategy of designing and developing products indigenously. 7 TVS's Victor is yet another development in this direction and this indigenously built model has been a success in the markets. ABOUT THE INDUSTRY Their operations cover spectrum of consumer and industrial application including motorcycles, mopeds, automotive components and industrial supplies. In each of these areas Hero is a pioneer and a leader. Hero Cycles Ltd. is in the Guineas Book of World Records as the world’s largest bicycle manufacturer. Hero Motors Ltd. makes Hero-PUNCH: the most advanced light motorcycle. Hero-PACER, PANTHER and ANKUR produced by majestic auto Ltd. are among the most popular mopeds in the country. Other companies in the HERO galaxy are Gujarat Cycles Ltd.: Indian’s most advanced bicycle manufacturing unit; Munjal Showa Ltd.: Major O.E. supplier of the stock industries: brand leader in shafts and hubs; Highway Cycle industries: manufacturing free wheels and Sunbeam Castings: making precision non-ferrous castings. Modern technologies for systems have transformed the profile of HERO. Yet the formula for success is unchanged –A drive for quality and economy. A commitment to ancillary development and uncompromising attention to the common man’s need 8 HERO GROUP BUSINESS HERO CYCLES HERO CYCLES GUJARAT LIMITED LIMITED (UNIT II) CYCLES LIMITED Bicycles Established in 1956 Established in Established in in Ludhiana 1988 in Sahibabad 1988 in Baroda Product : Bicycles Product: Bicycles Product : Bicycles BUSINESS HERO HONDA MAJESTIC AUTO HERO MOTORS MOTORS LIMITED LIMITED (A DIVISION OF MAJESTIC AUTO LIMITED) Auto-Two Established in 1983 New Established in Established in Wheelers Delhi 1978 Ludhiana 1988 Ghaziabad Product: motorcycles Product : mopeds Product: mini collaborator: Honda & fitness motorcycles motor co. Ltd., Japan equipment Collaborator: steyr daimler punch, austria product: scooters, collaborators: Malguti, Italy. BUSINESS ROCKMAN CYCLE HIGHWAY CYCLE MUNJAL SHOWA INDUSTRIES INDUSTRIES LIMITED LIMITED LIMITED Established in 1960 Established in 1971 Bicycle and Ludhiana Ludhiana Product: Established in 1985 Auto Product: Freewheels & Gurgaon Product : Components Automotive & Special Machine Stock Absorbers Bicycle Chains; Tools Collaborator: Showa 9 Steel & Aluminum Manufacturing Co. Hubs. Japan BUSINESS MANJAL SUNBEAM HERO CYCLES- CASTINGS CASTINGS COLD ROLLING DIVISION Castings and Established in 1981 Established in 1987 Established in 1990 steel Ludhiana Gurgaon Product : Ludhiana Product : Product : Non- Non- ferrous Cold Rolled Steel ferrous Castings Castings Sheets and Coils BUSINESS HERO EXPORTS HERO MANJAL SALES CORPORATE CORPORATION SERVICES Services Established in 1993 Established in 1995 Established in 1975 Ludhiana New Delhi Product: Ludhiana Product: Product : Corporate Service in Sole Selling Agents International Finance, HDR, IT & of Bicycles and Trading Company Strategic Planning Bicycles Parts for dealing in India. Commodities’ & Engineering Items 10 HISTORY The Honda motor company was incorporated in 1948. Since its inception, Honda has become the large Japanese industrial concern among those companies incorporated after World War II. It has also been established itself as the world’s Largest manufacturer of the motorcycles, commanding 25% of the motorcycle market and nearly 50% of the Japanese market. Today Honda is acknowledged as the undisputed leader in the motorcycle technology. Recognized the world over as a pioneer, the Honda name is guarantee of the technological and the manufacturing excellence of any product. Honda5s other areas of product excellence include Automobiles and Power products (Lawn Movers, generators and Outboard motors.) Honda motor company has 83 overseas production facilities in 35 countries looked after by 93000 strong force. In 1995 its consolidated sales amounted over Rs. 140000 crores. CHAIRMAN PROFILE Profile of Chairman of Hero Honda Ltd. Mr. Brijmohan Lal, Chairman of Hero Group of Companies, is a first generation entrepreneur of 1950’s. After partition Mr. Munjal along with his brothers started the business of bicycle components manufacturing in a humble way at Ludhiana at a time when the country was beset with bottlenecks of industrial infrastructure and investments. In his 50 years of career as an entrepreneur, Mr. Lal has a trail of successes, but his demeanor is unbelievably warm and loving. At this pinnacle of accomplishment, he is accessible, forthcoming and friendly- be it with workers, professionals, business associates or government officials. Born on July 1, 1923, Mr. Brijmohan Lal advocates corporate governance and ethical and value-driven management practices. He has been successful in 11 steering the business with innovative ideas. He continuously provides group companies foresight, advice in their business strategies. Today, the group produces 5 million bicycles and I million two-wheelers annually.
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