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 motorcycles 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.