Aleem Khan

7/30/2019 Aleem Khan

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INDEX

CONTENT

INTRODUCTION

OBJECTIVE S OF STUDY

CHAIR MAN IF HERO MOTOCORP

INDUSTRY SCENARIO

PRODUCT SPECIFICATION

SALES PERFORMANCE

WHAT IS MARKETING

WHAT IS STRATEGY

WHAT IS MARKETING STRATEGY

SWOT ANALYSIS

SEGMENTATION OF HERO MOTOCORP

PRODUCT

PRICING STRATEGY

PROMOTION

CONSUMER BEHAVIOR ANALYSIS TOWARDS

HERO MOTOCORP PRODUCT

WHAT IS MARKET ANALYSIS

RESEARCH & DEVELOPMENT

POLICIES OF HERO MOTOCORP

COMPITITORS OF HERO MOTOCORP

PORT ANALYSIS OF HERO MOTOCORP


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CUSTOMER VALUE ANALYSIS TOWARDS HERO MOTOCORP

RESEARCH METHODOLOGY

FACTS & FIGURES

QUESTIONNAIRE

RECOMMENDATIONS

BIBLOGRAPHY


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INTRODUCTION

OVERVIEW OF AUTOMOBILE SECTOR IN INDIA:-

The Automobil e sector is one of the fastest growing manufactu r ing sectors in India.

In the 90s the industry witnessed an average growth rate of above 20 percent.

Indian Automobile Industry is characterized by a very high percentage (75 per cent) of two

wheeler production, ranking second only to Taiwan.

The world leaders in the sector are evincing keen interest in establishing manufacturing

facilities for manufacturing and assembling components.

apolitically stable and vibrant State, Andhra Pradesh is centrally located with the support of

seaports, international airports, assured and reliable power supply, abundant water, broad base of

auto component manufacturers, highly trained, skilled and disciplined manpower and is

therefore, the preferred location for Automobile industries.

The interest of the state has been duly noted by Global Auto Majors, who have indicated their

interest to consider Andhra Pradesh for establishing manufacturing facility.

The Government is also formulating an Auto Policy, which would give a proper direction to the

growth of the sector.

There are more than 20 autocomponent manufacturing companies in the State, manufacturing

components such as grey-iron castings, precision aluminum castings, leaf springs, oils and

lubricants, diesel fuel injection equipment, electronics and auto electronics and auto electrical,

front axles, gears, forging, machined components, pressed metal components, pistons, cylinder

liners ,nozzles, delivery valves, starter motors, alternators, electronic regulators, high pressure

die castings, clutch covers, fuel filters ,etc.


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ABOUT THE COMPANY:-

Hero moto corp has a reputation of being the most fuel-efficient and the largest selling Indian

motorcycle. Its commitment of providing the customer with excellence is self-evident. A rich

background of producing high value products at a reasonable price led the world's

l a r ges t manuf ac t u r e r o f mot o r cyc l es t o co l l abor a t e w i t h t he wor l d ' s

la rge st b ic ycl e manufacturer. Hero Gro up t ha t re sul te d in th e se t t i ng u p of

Her o mot ocor p Mot o r s L t d .

A re l a t ions h i p so harmonious that Hero motocorp has managed to achieve indigenization

of over 95 percent, a Honda record world wide. Tactical promotions and excellent

marketing helped Hero motocorp establish itself as an intelligent purchase. Its unique

features like fuel conservation, safety riding courses and mobile workshops helped the group

reach in the interiors of the country. Finance services helped facilitate purchase, as did an

efficient dealer network across the country. Well -entrenched in the domestic market, Hero

motocorp Motors Ltd . turned its att ent ion overseas, and exports have been steadily on the

rise

Hero MotoCorp Ltd. (Formerly Hero motocorp Motors Ltd.) is the world's largest manufacturer

of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler

manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of

unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till

date.

Hero motocorp Motors Limited. The company is the largest two wheeler manufacturer in India. And also has been referred to as the world's biggest manufacturer of 2-wheeled motorized

vehicles since 2001, when it produced 1.3 million motorbikes in a single year.

Most Respected companies list has Hero motocorp Motors ranked at 108.


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In 2010, it was reported that Honda planned to sell its stake in the venture to theMunjal family.

Its main Models are

1. Cbz extreme2. Splender +3. Passion +4. Cd 05. Passion pro.

VISION OF THE COMPANY

The Legend of Hero motocorp

What started out as a Joint Venture between Hero Group, the worlds largest bicycle

manufacturers and the Honda Motor Company of Japan, has today become the

Worlds single largest two wheeler Company. Coming into existence on January 19,

1984, HeroMotors 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 5million customers, the Hero motocorp product range toda y commands a market

share of 48% making it a veritable giant in the industry. Add to that technological excellence,

an expensive dealer network, and reliable after sales service, and you have one of

the most customer-friendly companies. In the words of Mr. Brijmohan Lal Munjal, the

Chairman and Managing Director, W e wi l l cont i nue t o make every e f f or t

required for the development of the motorcycle industry, through new

product development, technological innovation, investment in equipment and

facilities and through efficient management.
http://auto.indiamart.com/motorcycles/hero-honda-cbz/index.htmlhttp://auto.indiamart.com/motorcycles/hero-honda-cbz/index.html


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MISSION OF THE COMPANY:-

Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and

aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts

its customers into its brand advocates. The company will provide an engaging environment for

its people to perform to their true potential. It will continue its focus on value creation and

enduring relationships with its partners.

PERFORMANCE 2011-2012:-

Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent

Net profit after tax at Rs. 1927.90 Crores

Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per share on

face value of each share of Rs. 2 each

EBIDTA margin for the year 13.49 per cent

EPS of Rs. 96.54.


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TERMINATION OF HONDA JOINT VENTURE:-

In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate

the joint venture between Hero Group of India and Honda of Japan in a phased manner. The

Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint

venture Hero Group could not export to international markets (except Sri Lanka) and the

termination would mean that Hero Group can now export. Since the beginning, the Hero Group

relied on their Japanese partner Honda for the technology in their bikes. So there are concerns

that the Hero Group might not be able to sustain the performance of the Joint Venture alone.

HISTORY:-

Hero Moto Corp was started in 1984 as Hero Honda Motors Ltd.

1956 -- Formation ofHero Cycles in Ludhiana(majestic auto limited)

1975 -- Hero Cycles becomes largest bicycle manufacturer in India.

1983 -- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

Shareholders Agreement signed

1984 -- Hero Honda Motors Ltd. incorporated

1985 -- Hero Honda motorcycle CD 100 launched.

1989 -- Hero Honda motorcycle Sleek launched.

1991 -- Hero Honda motorcycle CD 100 SS launched.

1994 -- Hero Honda motorcycle Splendor launched.

1997 -- Hero Honda motorcycle Street launched.
http://en.wikipedia.org/wiki/Hero_Cycleshttp://en.wikipedia.org/wiki/Honda_Motorhttp://en.wikipedia.org/wiki/Hero_Honda_Splendorhttp://en.wikipedia.org/wiki/Hero_Honda_Splendorhttp://en.wikipedia.org/wiki/Honda_Motorhttp://en.wikipedia.org/wiki/Hero_Cycles


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1999 -- Hero Honda motorcycle CBZ launched.

2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.

2002 -- Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.

2003 -- Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero Honda

motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.

2004 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched.

2005 -- Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe, Hero

Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda

Scooter Pleasure.

2007 -- New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero

Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus

and Hero Honda motorcycle Hunklaunched.

2008 -- New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour

Fi and Hero Honda motorcycle Passion Pro launched.

2009 -- New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited

edition ofHero Honda motorcycle Hunklaunched

2010 -- New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda

motorcycle Hunkand New Hero Honda Motorcycle Super Splendor launched.
http://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Hero_Honda_Passionhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_CBZ_Xtremehttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_CBZ_Xtremehttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Passionhttp://en.wikipedia.org/wiki/Hero_Honda_CBZ


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2011 -- New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ

Xtreme, Karizma launched.

New licensing arrangement signed between Hero and Honda.

August 2011 -- Hero and Honda part company, thus forming Hero MotoCorp and Honda

moving out of the Hero Honda joint venture.

November 2011 -- Hero launched its first ever Off Road Bike Named Hero "Impulse".

OBJECTIVES OF THE STUDY:-

1.To study the market strategies followed by Hero motocorp.

2 .To f i nd ou t t he t o t a l mar ke t s ha r e o f Her o mot ocor p .

3.To find out the promotional tools used by Hero motocorp.

4.To find out the customer preference towards the product of the company.

5 . T o s t u d y t h e f e a t u r e s o f d i f f e r e n t b r a n d s t h a t g i v e s a g o o d i d e a

o f v a r i o u s products and services offered by the company.

6.To study the brands of Hero motocorp& consumers perception about the product

of hero motocorp.

7 .To under s t and t he compe t i t i ve env i r onmen t i n wh i ch t he company i s

o p e ra t i n g and is desired to meet customer need and satisfaction.
http://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Honda


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CHAIRMAN OF HERO MOTOCORP

Dr.BrijmohanLallMunjal

"Don't dream if you can't fulfill your dreams''BrijmohanLallMunjal is often fond of saying.

The founder and patriarch of the $3.2 billion Hero Group is your classic first generation

entrepreneur. He is a man who started small, dreamt big and used a combination of grit andperseverance to create one of the country's largest corporate groups and the World's No.1 Two

Wheeler Company.

Instinctive from a young age, BrijmohanLall 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


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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, theyounger generations of some of our bicycle dealers have become dealers of Hero MotoCorp.

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 BrijmohanLall has. 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-

stroke engine - a technology that dramatically increased fuel efficiency and reduced maintenance

costs. This technology was one of the biggest reasons for Hero MotoCorp's stupendous success.

A Corporate Citizen

A frugal upbringing and a value system modeled on the famous Gurukul system - which

stressesthe 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.


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The Ludhiana Stock Exchange owes its existence to Brijmohan's vision as does the

Ludhiana Flying Club. He's also set up the not-for-profit 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 MotoCorp 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.

ARTICLE OF HERO MOTOCORP NEWS PAPERS:-

Times of India

Hero, Honda split terms finalized

NEW DELHI: It's finally splitsville for Hero Honda, one of corporate India's oldest and most

successful joint ventures , with the two founding partnersIndia's Munjal family and Japan'sHonda Motor Corpagreeing to part ways and terminate the 26-year-old relationship due to

unresolved differences and ambitious independent plans.

Sources in the know said most of the terms of the deal, which will see Honda selling its 26%

stake to the Munjal family, have been finalized and the matter will now be taken up by Hero

Honda's board on Thursday. Top officials of Honda are arriving here to attend the board meeting

, a source said.

he sources added that the Japanese auto major will exit the JV through a series of off market

transactions by giving the Munjal familythat currently holds 26% stake in the companyan

additional 26%. Honda, which also has an independent fully-owned two wheeler subsidiary

Honda Motorcycle and Scooter India (HMSI)will exit Hero Honda at a discount and get over


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$1 billion for its stake. The discount will be between 30% and 50% to the current value of

Honda's stake as per the price of the stock after the market closed on Wednesday.

The Munjal family plans to compensate Honda through high royalty payouts, which could

double to nearly 6% of net sales. However, key financial institutions have objected to this move,

saying that the deal could favour the Munjals but be detrimental to other shareholders.

Spokespersons for Hero Honda and the Munjal family refused to comment on the development .

Sources said as per the arrangement , it will be a two-leg deal. In the first part, the Munjal

family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose

vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV

would eventually be thrown open for private equity participation and those in the fray include

Warburg Pincus, Kohlberg Kravis & Roberts ( KKR), TPG, Bain Capital and Carlyle.

"The PEs will take between 50-60 % stake in this entity , giving them just under 15% stake in the

main company Hero Honda, which would soon sport a new name," the sources said.

Hero Honda, credited with putting the Indian middleclass on wheels, defied its humble

beginnings to quickly emerge as the world's biggest two-wheeler maker, also ending the

stronghold of Bajaj scooters in the country.

Tech, spares major irritants:-

Hero Honda's lowcost and highly-fuel efficient bikes (remember the classic 'Fill it, Shut it,

Forget it' campaign ) quickly emerged as the most-popular and convenient mode of transport,

catapulting the company into the global league of two-wheeler biggies.

However, it was the rising differences between the two partners that gradually emerged as an

irritant. Differences had been brewing for the last many years over a variety of issues, ranging

from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year

technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high royalty

payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero
http://timesofindia.indiatimes.com/topic/Warburg-Pincushttp://timesofindia.indiatimes.com/topic/Bain-Capitalhttp://timesofindia.indiatimes.com/topic/Bain-Capitalhttp://timesofindia.indiatimes.com/topic/Warburg-Pincus


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Honda (mainly managed by the Munjal family) to merge the company's spare parts

business with Honda's new fully-owned subsidiary Honda Motors India (HMI).

Sources said a large number of people from the Munjal clan are also suppliers to Hero Honda,

giving undue advantage and benefit to the Indian promoter. But to the discomfiture of the

Munjals, Honda wanted a more competitive approach to component procurement , that may have

seen the end of many of these suppliers.

"The differences became too big to allow a harmonious existence," the sources said.

Simultaneously , Honda's ambitious plans for its two-wheeler subsidiary HMSI also gave the

confidence to the company to go it alone. HMSI has singlehandedly revived the scooter market

in India and has been gradually gaining ground in motorcycles as well. A bullish Honda wanted

a solo say in the running of its business, and HMSI's success gave it the confidence to go for a

split.

HMSI has seen sales growing 42% in April-November this fiscal and it is setting up a second

plant-with a peak capacity of 1.2 million unitsto boost operations. Its plant at Manesar has a

capacity of 1.6 million units. Honda is expected to launch a slew of new models, including

lowpriced bikes to challenge Hero Honda and other competitors . The exit of Honda has,

however, beaten the Hero Honda scrip as investors feel that it may not have the wherewithal toindependently provide technology support.


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LAUNCHING OF SCOOTER LEAP:-


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INTRODUCTION TO HERO IMPULSE:-


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PRODUCT SPECIFICATIONS

HERO IMPULSE:

Engine Type Air cooled, 4- stroke single cylinder OHC , Self start

Displacement 149.2cc 5

Max. Power 9.7 kW (13.2 Ps) @ 7500 rpm

Max. Torque 13.4 N-m @ 5000 rpm

Ingnition D.C - CDI Ignition System

Transmission & Chassis Gear box 5 Speed constant mesh

Suspension Front Telescopic Hydraulic Shock Absorbers

Rear Swing Arm with Mono Suspension with Nitrox

Brakes Front Brake Dia 240 mm Disc

Rear Brake Drum Internal expanding shoe type (110 mm)

Wheels &Tyres Tyre Size Front 90 / 90 x 19 - 52 P

Tyre Size Rear 110 / 90 x 17 - 60 P

Electricals Battery 12 V - 4 Ah, MF Battery

Head Light 12 V - 35 W / 35 W - Halogen Bulb (Multi -Reflector Type)

Tail Stop Lamp 12V - 0.5 W / 4.1 W LED Lamp

Turn Signal Lamp 12 V - 10 W (Amber Bulb) x 4 nos (Multi-Reflector-Clear

Lens)


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Dimensions Wheelbase 1360mm

Ground Clearance 245 mm

Fuel Tank Capacity 11.1 Litre (Min) - 2.6 Litre (Usable Reserve)

CBZ EXTREME

Engine Type Air cooled, 4 - stroke single cylinder OHC

Displacement 149.2 cc

Max. Power 10.6 kW (14.4 PO@ 8500 rpm)

Max. Torque 12.80 N m @ 6500 rpm

Bore x Stroke 57.3 x 57.8 mm

Carburettor CV type with carburetor controlled variable ignition

Starting Self Start

Ingnition AMI - Advanced Microprocessor Ignition SyTransmission &Chassis

Cluch Multiplate wet

Gear box 5 Speed constant mesh

Chassis Type Tabular, diamond type


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Front Telescopic hydraulic type

Rear Rectuglar swing arm with 5 step adjustable gas reservior

suspension

Brakes Front Brake Disc Dia 240 mm

Rear Brake Disc DiscDia 220 mm

Rear Brake Drum Drum internal expanding shoe type (130 mm)

Wheels &Tyres Rim Size Front 18 x 1.85, 5 Spoke cast wheel

Rim Size Rear 18 x 2.15, 5 Spoke cast wheel

Tyre Size Front 80 / 100 x 1847 P

Tyre Size Rear 100 / 90 x 1856 P

Electricals Battery 12 V -4 Ah, MF battery

Head Light 12 V -35 WI 35W - Halogen bulbTrapeze

Tail Stop Lamp 12 V -0.5 WI 4.1W (LED lamps - Clear lens)

Turn Signal Lamp 12 V -21 W (Amber bulb) x 4 nos. (MFR - CI)

Dimensions Length 2080mm

Width 765mm

Height 1145mm

Wheelbase 1325 mm


Fuel Tank Capacity 12.1 litre (Min)

Reserve 1.5 litre (Usable reserve)

Kerb Weight 148 kg (Brakes - FR/ RR --> Disc/ Drum)


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HONDA PLEASURE:-

Type Air-cooled, 4-stroke single cylinder OHC

Displacement 102 cc

Max. Power 5.03 KW @ 7000 RPM

Max. Torque 7.85 Nm @ 5000 RPM


Compression Ratio 9.0 : 1

Starting Self start

Ingnition CDI

Transmission & ChassisGear box Variomatic drive (2.510.81)

Chassis Type High rigidility under bone type

SuspensionFront Bottom link with spring-loaded hydraulic damper

Rear Swing arm with spring-loaded hydraulic damper

BrakesFront Brake Internal expanding shoe type (130 mm)

Rear Brake Disc Internal expanding shoe type (130 mm)

Wheels & TyresRim Size Front 10 x 2.15


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Rim Size Rear 10 x 2.15

Tyre Size Front 3.50 x 104 PR / 51 J (with tuff up tube)

Tyre Size Rear 3.50 x 104 - 4PR / 51 J (with tuff up tube)

ElectricalsBattery 12V-4 Ah

Head Light 12V35W / 35WHalogen bulb (Multireflector type)

Tail Stop Lamp 12V5 / 21 W (MultiReflector)

Turn Signal Lamp 12V21W (Amber bulb) x 4 nos ( Multireflector, clear lens)

DimensionsLength 1750 mm

Width 705 mm

Height 1100 mm

Wheelbase 1240 mm

Saddle Height 795 mm


Fuel Tank Capacity 5 ltrs. ( Min)

Kerb Weight 104 Kg


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PASSION PRO:-

Type Air-cooled, 4-stroke single cylinder OHC

Displacement 97.2 cc

Max. Power 5.74 kW (7.8 Ps) at 7500 rpm

Max. Torque 0.82 kg-m (8.04 N.m) at 4500 rpm


Starting Kick start / Self start

Ingnition DCDigital CDI

Transmission & Chassis

Cluch Multi-plate wet

Gear box 4 Speed constant mesh

Chassis Type Tubular double cradle frame

Suspension

Front Telescopic hydraulic shock absorbers

Rear Swing arm with hydraulic shock absorber


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Brakes

Front Brake Disc BrakeDia 240 mm

Rear Brake Drum Internal expanding shoe type (130 mm)

Wheels & Tyres

Rim Size Front 18 x 1.60, Spoke wheels / Cast wheel

Rim Size Rear 18 x 1.60, Spoke wheels / Cast wheel

Tyre Size Front 2.75 x 184 PR / 42 P

Tyre Size Rear 3.00 x 186 P / 52 PR

Electricals

Battery 12V-3 Ah

Head Light 12V35W / 35WHalogen bulb, trapeziodal, MRF

Tail Stop Lamp 12V5 / 10 W (Twin bulb), MFR

Turn Signal Lamp 12V10W (Amber bulb) x 4 nos MFR, clear lens

Dimensions

Length 1980 mm

Width 725 mm

Height 1075 mm

Wheelbase 1235 mm

Saddle Height 795 mm


Fuel Tank Capacity 12.8 ltrs. ( Min)

Reserve 1 ltrs. ( Usable reserve )


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GREEN MANUFACTURING:-

Sustainable development lies at the core of Hero MotoCorp's vision of being one of India's most

environment friendlycompanies.

Hero MotoCorp believes that to create a sustainable enterprise, it is critical to strike the right

balance between business,mankind and nature.

GREEN SUPPLY CHAIN:-

The process of sustainable development is incomplete without involving the company's supply

chain. Hence Hero MotoCorp has therefore put together a "Green Dealer Development Program"

for the front end and a "Green Vendor Development Program" for the backend of the supply

chain.

In each of these programs, the partners' are made aware of the importance of caring for the

environment and are encouraged to manage their material resources, industrial wastes, energy

resource, pollution and other effluents based on a number of pre-determined parameters.

Hero MotoCorp supports all its partners in the Green Supply Chain venture by:-

Developing required competencies Sharing knowledge Providing technical support

Through this program Hero MotoCorp aims to generate sufficient momentum within the

industry, and looks forward to the day when the entire automotive industry is made up on a

seamless green chain.


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Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution and selling. However, because the academic study of

marketing makes extensive use of social sciences, psychology, sociology, mathematics,

economics, anthropology and neuroscience, the profession is now widely recognized

as a science ,allowing numerous universities to offer Master-of-Science (MSc)

programmers.

The overall process starts with marketing research and goes through market

segmentation, business planning and execution, ending with pre- and post-sales promotional

activities.

It is also related to many of the creative arts. The marketing literature is also adept atRe-

inventing itself and its vocabulary according to the times and the culture.

What is strategy?

Strategy

, a word ofmilitary origin, refers to a plan of action designed to achieve a particular goal. In

military usage strategy is distinct from tactics, which are concerned with the conduct of an

engagement, while strategy is concerned with how different engagements are linked.

How a battle is fought is a matter of tactics: the terms and conditions that it is fought on and

whether it should be fought at all is a matter of strategy,

which is part of the four levels of warfare:

political goals or grand strategy, strategy, operations, and tactics.

Building on the work of many thinkers on the subject, one can define strategy as " a

comprehensive way to try to pursue political ends, including the threat or actual use of

force, in a dialectic of willsthere have to be at least two sides to a conflict.
http://en.wikipedia.org/wiki/Militaryhttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Objective_%28goal%29http://en.wikipedia.org/wiki/Military_strategyhttp://en.wikipedia.org/wiki/Tactic_%28method%29http://en.wikipedia.org/wiki/Grand_strategyhttp://en.wikipedia.org/wiki/Operation_%28military%29http://en.wikipedia.org/wiki/Tactichttp://en.wikipedia.org/wiki/Tactichttp://en.wikipedia.org/wiki/Operation_%28military%29http://en.wikipedia.org/wiki/Grand_strategyhttp://en.wikipedia.org/wiki/Tactic_%28method%29http://en.wikipedia.org/wiki/Military_strategyhttp://en.wikipedia.org/wiki/Objective_%28goal%29http://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Military


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These sides interact, and thus a Strategy will rarely be successful if it shows no

adaptability.

In game theory, strategy refers to one of the options that a player can choose. That is ,every

player in anon-cooperative game has a set of possible strategies, and must choose one of the

choices. A strategy must specify what action will happen in each contingent state of the game

E.g.

If the opponent does A, then take action B, whereas if the opponent does C, take action

Strategies in game theory may be random (mixed) or deterministic (pure). That is, in some

games, players choose mixed strategies .Pure strategies can be thought of as a special case of

mixed strategies, in which only probabilities 0 or 1 are assigned to actions.
http://en.wikipedia.org/wiki/Game_theoryhttp://en.wikipedia.org/wiki/Player_%28game%29http://en.wikipedia.org/wiki/Non-cooperative_gamehttp://en.wikipedia.org/wiki/Mixed_strategyhttp://en.wikipedia.org/wiki/Mixed_strategyhttp://en.wikipedia.org/wiki/Non-cooperative_gamehttp://en.wikipedia.org/wiki/Player_%28game%29http://en.wikipedia.org/wiki/Game_theory


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Many companies cascade a strategy throughout an organization, by creating strategy

tactics that then become strategy goals for the next level or group. Each group is expected

to take that strategy goal and develop set of tactics to achieve that goal. This is why it is

important to make each strategy goal measurable. Marketing strategies are dynamic and

interactive. They are partially planned and partially unplanned.

SWOT Analysis of HERO MOTOCORP:-

SWOT analysis is strategic planning method used to evaluate the

Strengths,

Weaknesses,

Opportunities, and

Threats

Involved in projector in a business venture. It involves specifying the objective of the business

venture or project and identifying the internal and external factors that are favorable and

unfavorable to achieve that objective.

The technique is credited to Albert Humphrey, who led a convention at Stanford University in

the 1960s and 1970s using data from Fortune 500companies.A SWOT analysis must first start

with defining a desired end state or objective. A SWOT analysis may be incorporated into the

strategic planning model. Strategic Planning has been the subject of much research.

Strengths: characteristics of the business or team that give it an advantage over others in the

industry.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others.

Opportunities: external chances to make greater sales or profits in the environment.


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Segmentation of Hero motocorp:-

Geographical Segmentation

Geographic Segmentation calls for division of the market into different geographical units such

as nations, states, regions, countries, cities, or neighborhoods. In the South Asian context,

geographic segmentation assumes importance due to variations in consumer preferences and

purchase habits across different regions, across different countries, and across different states in

these countries

Demographic Segmentation

In Demographic Segmentation, we divide the market into groups on the basis of variable such as

age, family size, family life cycle, income, occupation, education, religion, race, generation,

nationality and social class. One reason demographic variables are so popular with marketers in

that theyre often associated with consumer needs and wants. Another is that theyre easy to

measure. Even when we describe the target market in non-demographic terms (say, by

personality type), we may need the link back to demographic characteristics in order to estimate

the size of the market and the media we should use to reach it efficiently

Psychographic Segmentation

Psychographics is the science of using psychology and demographics to better understand

consumers. In psychographic segmentation, buyers are divided into different groups on the basis

of psychological/personality traits, lifestyle, or values. People within the same demographic

group can exhibit very different psychographic profiles. Values and lifestyles significantly affect

product and brand choice of consumers. Religion has a significant influence on values and

lifestyles. The strict norms that consumers follow with respect to food, habits or even dress codes

are representative examples in this regard.


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ARTICLE OF SEGMENT OF HERO MOTO CORP I N TIMES IN INDIA

Hero MotoCorp sales dip 30% this year in premium motorcycle segment.

Hero MotoCorp which is well known for premium motorcycle models such as CBZ, Karizma

and Hulk also launched Impulse in the 125cc category recently. However, large scale

competition in the two wheeler segment is causing a devastating effect on Hero MotoCorp

premium bike sales for the year. In fact, sales have dipped over 30% in last 11 months.

Hero MotoCorp was formed after split between Hero and Honda Motor Corporation inDecember 2010. Since then premium bike sales of the two wheeler company has been steadily

decreasing and 2011 has been a bad year where sales were concerned.

While Hero MotoCorp sold 34,116 units in January 2011 November sales accounted for only

23,860 units. This comes at a time when competitors are recording double digit sales. Bajaj

Auto, sales for the year has been positive with sales increase from 1.01 lakh units in January to

1.34 lakh units while Honda too have sold over 59,267 units in November 2011.

Hero MotoCorp sales have dipped in the 125cc and 250cc segments which are considered the

fastest growing segments in India. Increased demand is shown by customers especially following

rising fuel prices and high interest rates being charged for four wheelers. Hero MotoCorp

however, managed to record stronger sales in the 75cc to 125 cc segments where they sold 4.6

lakh units in November as compared to 94,343 units sold by Bajaj Auto and 12,478 units sold by

HMSI.
http://www.rushlane.com/latest/bikes-news/hero-bikes-newshttp://www.rushlane.com/latest/auto-news/honda-carshttp://www.rushlane.com/latest/bikes-news/bajajhttp://www.rushlane.com/latest/bikes-news/bajajhttp://www.rushlane.com/latest/auto-news/honda-carshttp://www.rushlane.com/latest/bikes-news/hero-bikes-news


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Full market coverage: -

The firm attempts to serve all customer groups with all the products they might need. Only very

large firms. Such as Microsoft (software market),General motors (vehicle market), and coca-

cola (nonalcoholic beverage market), can undertake a full market coverage strategy. Large firms

can cover a whole market in two broad ways: through undifferentiated marketing or

differentiated marketing.

Additional considerations:-

Two other considerations in evaluating and selection segments are segment-by-segmenting

vision plans and ethical choice of market targets.

Segment-by-segment invasion plans: -

A company would be wise to enter on segment at a time. Competitors must not know to what

segment(s) the firm will move into next. Segment-by-segment invasion plans are illustrated three

firms, A, B, and C, have specialized in adapting computer systems to the needs of airlines,

passenger transport, and goods transport companies. Company A meets all the computer needs of

airlines.

Ethical choice of market targets: -

Marketers must target segments carefully to avoid consumer backlash. Some consumers may

resist being labeled. Singles may reject single. Serve food packaging because they dont want to

be reminded they are eating alone. Elderly consumers who dont feed their age may not

appreciate products that identify them as old market targeting also can generate public

controversy


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SEGMENTATION, TARGETING & POSITIONING:-

From the current segmentation, targeting & positioning and consumer surveys we found that our

client has targeted the following segments:

Congested areas of urban cities.

Males/Females between the age group of 18-36

Middle class people , mostly officials & executives

The client analysis from our questionnaire it was found that our client has targeted the right

segment HHML & TVS 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 options are available with the client; one is to redesign the bike and

second is to reposition the bike as Bike with one time investment. Since redesigning of bike

may involve a big task and huge investment therefore were commended repositioning the bike.

Positioning: -

Positioning is the act of designing the companys offering and image to occupy a distinctive

place in the minds of the target market, the goal is to locate the brand in the minds of consumers

to maximize the potential benefit to the firm. A good brand positioning helps guide marketing

strategy by clarifying the brand essence, what goals it helps the consumer achieves, and how it

does so in a unique way. Everyone in the organization should understand the brand positioning

and use it as context for making decisions.


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Competitive Frame of Reference:-

A starting point in defining a competitive frame of reference for a brand positioning is to

determine category membership-the products or sets of products with which a brand competes

and which function as close substitutes. Competitive analysis will consider a whole host of

factors-including the resources, capabilities and likely intension of various other firms-in

choosing those markets where consumers can be profitably served.

Product:-

Core Product: -The core product or benefit of Hero moto corp Splendor is Traveling and saving

the time by reach on desire place at right time.

.Basic Product: -The basic product of Hero motocorp splendor are Engine, Handle, Shockers,

Wheels, Gear box and chain set etc.

Expected Product: -The expected products of Hero motocorp splendor are: -1.It should be 5

gear boxes.2.It should be 90 Kmpl mileages.3.It should be 120 Km/hour Maximum speeds.4.It

should be disk brake or power brake.5.It should be steel body.

Augmented Product: -The augmented products of Hero motocorp Splendor are: -

1.It provides monthly check up for decrease the pollution.

2.It provides fast service of the product.


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Pricing Strategy: -

Penetration Pricing: -

The price charged for products and services is set artificially low in order to gain market share.

Once this is achieved, the price is increased. This approach was used by France Telecom and Sky

TV. Hero motocorp Used penetration pricing strategy because that time Hero motocorp use

National Segment and low income persons so they used penetration strategy.

Price Skimming: -

Charge a high price because you have a substantial competitive advantage. However, the

advantage is not sustainable. The high price tends to attract new competitors into the market, and

the price inevitably falls due to increased supply. Manufacturers of digital watches used a

skimming approach in the 1970s. Once other manufacturers were tempted into the market and

the watches were produced at a lower unit cost, other marketing strategies and pricing

approaches are implemented. Premium pricing, penetration pricing, economy pricing, and price

skimming are the four main pricing policies/strategies. They form the bases for the exercise.

However there areother important approaches to pricing.


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Promotion: -

Below the Line Promotion:

Below The Line is a common technique used for touches and feel products. Those consumer

items where the customer will rely on immediate information than previously researched items.

Below The Line techniques ensure recall of the brand while at the same time highlighting the

features of the product.

Above The Line Promotion: -

Above the line (ATL) is an advertising technique using mass media to promote brands. Major

above-the-line techniques include TV and radio advertising, print advertising and internet banner

ads. This type of communication is conventional in nature and is considered impersonal to

customers. The ATL strategy makes use of current traditional media: television, newspapers,

magazines, radio, outdoor, and internet .Hero motocorp used Above the Line Promotion because

in the Above the Line promotion co. members used advertisement through Radio, T.V.,

Newspaper and Other media communications.

Place: -

Geographical Placing: -

Geographical placing of the product has divided into 4 marketsand these are: -

1.Local

2.National

3.Regional

4.InternationalHeromotocorp used National Market for sale the Hero motocorp Splendor.


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Consumer behavior analysis towards hero motocorp product:-

What is Consumer Behavior?

Consumer behavioris the study of when, why, how, and where people do or do not buy a

product. It blends elements from psychology, sociology, social anthropology and economics. It

attempts to understand the buyer decision making process, both individually and in groups.

It studies characteristics of individual consumers such as demographics and behavioral variables

in an attempt to understand people's wants. It also tries to assess influences on the consumer

from groups such as family, friends ,reference groups, and society in general. Customer behavior

study is based on consumer buying behavior, with the customer playing the three distinct roles

of user, payer and buyer.

Relationship marketing is an influential asset for customer behavior analysis as it has a keen

interest in the re-discovery of the true meaning of marketing through the re-affirmation of the

importance of the customer or buyer. A greater importance is also placed on consumer retention,

customer relationship management, personalization, customization and one-to-one marketing.

Social functions can be categorized into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrows possibility theorem

is used for a social function, social welfare function is achieved. Some specifications of the

social functions are decisiveness, neutrality, anonymity, monotonic ,unanimity, homogeneity and

weak and strong Pareto optimality .No social choice function meets these requirements in an

ordinal scale simultaneously. The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks. Marketing provides services in order to satisfy customers. With that in mind, theproductive system is considered from its beginning at the production level, to the end of the

cycle, the consumer


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What is marketing analysis?

A Market analysis

is a documented investigation of a market that is used to inform a firm's planning activities

particularly around decisions of inventory, purchase, work force expansion/contraction, facility

expansion, purchases of capital equipment, promotional activities, and many other aspects of a

company.

Dimensions of market analysis

David A. Aaker outlined the following dimensions of a market analysis Market size(current and

future)

Market growth rate

Market profitability

Industry cost structure

Distribution channels

Market trends

Key success factors

The goal of a market analysis is to determine the attractiveness of a market, both now and in the

future. Organizations evaluate the future attractiveness of a market by gaining an understanding

of evolving opportunities and threats as they relate to that organization's own strengths and

weaknesses. Organizations use the findings to guide the investment decisions they make to

advance their success.

The findings of a market analysis may motivate an organization to change various aspects of its

investment strategy. Affected areas may include inventory levels, a work force

expansion/contraction, facility expansion, purchases of capital equipment, and promotional

activities


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Elements Market size:-

The most common measure of market size is the sum of the revenues of its participants. The

following are examples of information sources for determining market size:

Government data

Trade association data

Financial data from major players

Customer surveys

Market trends

Changes in the market are important because they often are the source of new opportunities and

threats. Moreover, they have the potential to dramatically affect the market size. Examples

include changes in economic, social, regulatory, legal, and political conditions and in available

technology, price sensitivity, demand for variety, and level of emphasis on service and support.

Market growth rate

A simple means of forecasting the market growth rate is to extrapolate historical data in to the

future. While this method may provide a first-order estimate, it does not predict important

turning points. A better method is to study market trend sand sales growth in complementary

products. Such drivers serve as leading indicators that are more accurate than simply

extrapolating historical data.

Market segments

Markets are not uniform. Therefore it is also important for investors to identify and evaluate the

various segments that make up the total market. This analysis helps organizations determine

which areas account for the greatest share of the market's growth and are more susceptible to


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change. This information, in turn, helps them pinpoint the most promising opportunities

within the overall market and guides the choice of specific investments

Market profitability

While different organizations in a market will have different levels of profitability, they are all

similar to different market conditions .Michael Porter devised a useful framework for evaluating

the attractiveness of an industry or market.

This framework, known as Porter's five forces, identifies five factors that influence the market

profitability:

Buyer power

Supplier power

Barriers to entry

Threat of substitute products

Rivalry among firms in the industry cost structure

The cost structure is important for identifying key factors for success. To this end, Porter's value

chain model is useful for determining where value is added and for isolating the costs. The cost

structure also is helpful for formulating strategies to develop a competitive advantage. For

example, in some environments the experience curve effect can be used to develop a cost

advantage over competitors.

Distribution channels

Examining the following aspects of the distribution system may help with a market analysis:

Existing distribution channels - can be described by how direct they are to the customer.

Trends and emerging channels - new channels can offer the opportunity to develop a

competitive advantage.


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Channel power structure - for example, in the case of a product having little brand

equity, retailers have negotiating power over manufacturers and can capture more

margins.

Success factors

The key success factors are those elements that are necessary in order for the firm to achieve its

marketing objectives. A few examples of such factors include:

Access to essential unique resources

Ability to achieve economies of scale

Access to distribution channels

Technological progress It is important to consider that key success factors may change over

time, especially as the product progresses through its life cycle

Applications

The literature defines several areas in which market analysis is important. These include:

sales forecasting, market research, and marketing strategy. Not all managers will need to conduct

a market analysis. Nevertheless, it is important for managers that use market analysis data to howanalysts derive their conclusions and what techniques they use to do so. Consumer Markets: at

less than 31 two- wheeler per 1,000 citizens in 2005, India is a poorly penetrated market for

motorcycles- even after accunting for a relatively low per capita income of around US$,3100 per

year on purchasing power parity (PPP) basis. Indonesia, whose PPP per capital income is just

15% grater than Indias has 83 two-wheelers per 1,000people. And Vietnam, despite having a

13% lower per capital income, has penetration of 122 two wheelers per 1000. Malaysia and

Thailand are at 223& 264 two wheelers per 1000.The fact is that with the Indian economy

growing close to8% CAGR in the last three years, three is enormous headroom fro increasing

two wheelers penetration in the country.

What this needs are the products at different price Points, sales and service set- ups across the

length and breadth of the country, which are backed by attractive financing options to make two

wheelers affordable to the vast majority of the population. Hero motocorp motors have all three


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levers in places to drive this change and expand the market. Out view is that motor cycle

demand in India will grow at around 15% per year over the coming years. It will there for

be our endeavor to grow at a pace significantly higher that the market growth.

Two-wheelers: Overall industry sales of tow-wheelers increased by 15% from 6.57million in2005-06 to 7.57 million in 2006-07. As in the previous years, motorcycle continues to dominate

the two-wheeler market. It grew at 18.8 %, from 5.2 million in2005-06 to 6.2 million in 2006-07

consequently, the share of motorcycle in two-wheeler market further increase from 79% in 2005-

06 to 82% in 2006-07. The industry sale of two-wheelers: Motorcycle while the motorcycle as a

whole grew at 18.8% in 2007-08,Hero motocorp motors sales of motorcycle increased 31.9%,

which resulted in the companys market share improving from 27.8% in 2005-06 to 30.8% in

2006-07. In 2007-08 grew up to 35.5% to

42.6% in 2008-09,there has rapid growth in two wheeler market because new generation is

more dependent more on twowheeler 50.4% in 2009- 10.

Research & Development:-

Technology leadership is the first step towards market leadership. Recognizing this, Hero

motocorp have over the years built a completely integrated R&D center at Delhi. With staff

strength of over 300 engineers, this world class center is equipped with state of- the art

facilities encompassing engine and vehicle design and testing, analysis, component testing,

electrical and electronics laboratory materials laboratory and trial manufacturing.


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POLICIES OF HERO MOTOCORP:-

KEY POLICIES

Hero motocorp, 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 motocorp takes a stand as a socially responsible enterprise respectful of

its environment and respectful of the important issues. Hero motocorp has been strongly

committed not only to environmental conservation programmers 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.BrijmohanLallMunjal.

Environment Policy

We at Hero motocorp 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: 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 supplychain. Continue product

innovations to improve environmental compatibility.

Institutionalize resource conservation, in particular, in the areas of oil, water, electrical energy,

paints and chemicals.


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Quality Policy

Excellence in quality is the core value of Hero motocorp'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 customers growing aspirations through:

Innovation in products processes and services.

Continuous improvement in our total quality management systems.

Teamwork and responsibility

Safety Policy

Hero motocorp 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:

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places. Promoting safety and

health awareness amongst employees, suppliers and Contractors.

Continuous improvements in safety performance through precautions besides participation and

training of employee


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GLOBAL PRESENCE

Internationally competitive R&D capabilities.

Proven technological know how

Cost and quality balance

Product in sync with market need

Warranty and trained support

SUPPLY CHAIN MANAGEMENT

Partners with globally trusted shipping lines.

Efficiently packed, factor stuffed cargo shipped in CBU, SKD or CKD modes

Specially designed export packing procedure fowled

Fully container (FCL) or less than container load (LCL) dealt with

safety and security


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COMPETITORS OF HERO MOTOCORP

Industry Concept of Competition

An industry is a group of firms that offer a product or class of products that are close substitutes

for one another. Industries are classified according to number of sellers; degree of product

differentiation; presence or absence of entry, mobility, and exit barriers; cost structure; degree of

vertical integration; and degree of globalization.

Number of sellers and degree of differentiation:

The starting point for describing an industry is to specify the number of sellers and whether the

product is homogeneous or highly differentiated give rise to four industry structure types

:1.Pure monopoly

only one firm provides a certain product or services in a certain country or area (a local water or

cable company). An unregulated monopolist might charge a high price, do little or no advertising

and offer minimal service. If partial substitutes are available and there is some danger of

competition, the monopolist might invest in more service and technology. A regulated

monopolist is required to charge a lower price and provide more service as a matter of public

interest.

2.Oligopoly

a small number of (usually) large firms produce products that range from highly differentiated to

standard. Pure oligopoly consists of a few companies producing essentially the same commodity

(oil, steel). Such companies would find it hard to charge anything more than the going price. Ifcompetitors match on price and services, the only way to gain a competitive advantage is through

lower costs. Differentiated oligopoly consists of a few companies producing products (autos,

cameras) partially differentiated along lines of quality, features, styling, or services. Each

competitor may seek leadership in one of these major attributes, attract the customers favoring

that attribute, and charge a price premium for that attribute.


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3.Monopolistic competition

many competitors are able to differentiate their offers in whole or in part (restaurants, beauty

shops). Competitors focus on market segments where they can meet customer needs in a superior

way and command a price premium.

4. Pure competition

Many competitors offer the same product and service (stock market, commodity market).

Because there is no basis for differentiation, competitors process will be the same. No

competitor will advertise unless advertising can create psychological differentiation (cigarettes,

beer) in which case it would be more proper to describe the industry as monopolistically

competitive. An industry competitive structure can change over time. For instance, the media

industry has continued to consolidate, turning from monopolistic into a differentiated oligopoly.


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HERO MOTOCORP COMPITITORS:-

The Pulsar 220 which is the fastest bike in India faces a stiff challenge from new models on

speed & style.After release which created a quite a bit stirr among the bike enthusiasts across the

country by giving them the fastest Indian, Bajajs Pulsar 220 DTSi can achieve a speed of 144

km an hour, almost 20 km more than its predecessor, and can accelerate from 0 to 60 km in four

seconds.

Bajaj maybe the brand for years in scooter making in India and true enough it has set a mark in

motorcycle industry too but one should not forget that Yamaha and Honda have been the

pioneers in motorcycle industry for quiet long it was their absence which gave bajaj time to

stabilize but as they are back with some amazing concepts with user friendly price they already

have raked bajaj's market share plus bajaj has been cashing too long onthe pulsar model while all

the models from Yamaha are distinctive and have a charisma of their own which brings on

freshness to the stale Indian market. 150cc bike for over one lakh bucks? And huge sales among

that? Yamaha has to seriously consider Indian market as a highest priority n should release much

better looking bike than r15/fazer. It seems yamaha is treating Indian market as dump and hence

these kind of bikes.

The biking industry is in for a toss. Yamaha, the true blue biker's choice is sending everybody in

for a spin. The new bred Yams are not just good looking, but also have the technology &

hardware to go for. Bajaj picked up from where Yamaha left in terms of performance bikes in

India. But with the return of turning forks with line up like R1, R15,FZ16, Fazer& FZS the

competition is tougher than ever for Bajaj Pulsars. Also with the add on kits now available for

the R15 & FZ16, the performance bar will be raised.

If you see the history of Yamaha. Yamaha's all bikes after RX 100 were not very successful in

Indian market. Once technology shifted from 2 strokes to 4 stroke Yamaha lose his sheen in the

Indian Market. They have launched so many bikes after RX 100 but all of them were not very


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successful. Same story is with Hero motocorp. Hero motocorp is very successful with

fuel economic bike but not with Power bikes.

I think both of them will not give stiff competion to Bajaj. Bajaj has already made their

reputation in Power bike. I can see Bajaj going down in the coming years with Yamahaespecially entering this market very aggressively with performance based bikes where it is giving

real tough competion out there but then people remember one thing that Yamaha has a history of

giving a good race bikes all these years may be not in India but the concept is coming and who

better than yamaha can deliver such kind of bikes, Yamaha stands for performance to the max

and they surely are on a roll and will get to the top spot with new models toc ome from them the

huge success of Pulsar.

Yes I think the race to being the fastest Indian is getting hotter as the day goes by, mostof the

bike companies are vying this spot like, Yamaha which has significantly sprung back like a

phoenix for that matter and are giving stiff competition for everyone in the bike segment and

even Karizma from Hero motocorp is a great bike and gives great performance. The forte which

Bajaj Pulsar was holding for a long time would surely passon to others who are coming up with

good versions in this category.

According to meYamaha is the one who will dethrone Bajaj from their top position in this

segment. No I don't see this happening as Bajaj pulsar has time and again proved themselves in

this performance based biking for a long time in India, and also with that performance they also

come up with a good mileage tag and this is where there are many takers for Bajaj pulsar,

whereas Karizma and the Yamaha series doesn't give one a great mileage for that matter, so it

would be very difficult to give competition for Bajaj Pulsar in this regard.

But now the launching of two new products by hero has created a great compitition with its

compititors


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POTOR ANALYSIS OF HERO MOTOCORP

Porter five forces analysis

Porter's Five Forces is a framework for industry analysis and business strategy development

formed by Michael E. Porter of Harvard Business Schoolin1979.It draws upon Industrial

Organization (IO) economics to derive five forces that determine the competitive intensity and

therefore attractiveness of a market. Attractiveness in this context refers to the overall industry

profitability. An "unattractive" industry is one in which the combination of these five forces acts

to drive down overall profitability. A very unattractive industry would be one approaching "pure

competition", in which available profits for all firms are driven down to zero.

Three of Porter's five forces refer to competition from external sources. The remainder is internal

threats. Porter referred to these forces as the micro environment, to contrast it with the more

general term macro environment. They consist of those forces close to accompany that affect its

ability to serve its customers and make a profit.A change in any of the forces normally, requires

a business unit to re-assess the market place given the overall change in industry information.

The overall industry attractiveness does not imply that every firm in the industry will return the

same profitability. Firms are able to apply their core competencies, business model or network to

achieve a profit above the industry average. A clear example of this is the airline industry. As an

industry, profitability is low and yet individual companies, by applying unique business models,

have been able to make a return in excess of the industry average.

Porter's five forces include - three forces from 'horizontal' competition: threat of substitute

products, the threat of established rivals, and the threat of new entrants; and two forces from

'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.

This five forces analysis is just one part of the complete Porter strategic models. The other

elements are the value chain and the generic strategies.


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The five forces :-

The threat of the entry of new competitors Profitable markets that yield high returns will

attract new firms. This results in many newer trants, which eventually will decrease profitability

for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, theabnormal profit rate will fall towards zero ( perfect competition).

The existence of barriers to entry( patents, rights,etc.) The most attractive segment is one in

which entry barriers are high and exit barriers are low. Few new firms can enter and non-

performing firms can exit easily.

Economies of product differences

Brand equity

Switching costs or sunk costs

Capital requirements

Access to distribution

Customer loyalty to established brands

Absolute cost

Industry profitability; the more profitable the industry the more attractive it will be to new

competitors.

The intensity of competitive rivalry

For most industries, the intensity of competitive rivalry is the major determinant of the

competitiveness of the industry.

Sustainable competitive advantage through innovation

Competition between online and offline companies;

click-and-mortar -v- slags on a bridge.

Level ofadvertising expense


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Powerful competitive strategy

The visibility of proprietary items on the Web used by a company which can intensify

competitive pressures on their rivals.

The threat of substitute products or services

The existence of products outside of the realm of the common product boundaries increases the

propensity of customers to switch to alternatives:

Buyer propensity to substitute

Relative price performance of substitute

Buyer switching costs

Perceived level of product differentiation

Number of substitute products available in the market

Substandard product

Quality depreciation

The bargaining power of customers (buyers)

The bargaining power of customers is also described as the market of outputs: the ability of

customers to put the firm under pressure, which also affects the customer's sensitivity to price

changes.

Buyer concentration to firm concentration ratio

Degree of dependency upon existing channels of distribution

Bargaining leverage, particularly in industries with high fixed costs

Buyer volume

Buyer switching costs relative to firm switching costs

Buyer information availability


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Ability to backward integrate

Availability of existing substitute products

Buyer price sensitivity

Differential advantage (uniqueness) of industry products

RFM Analysis.

The bargaining power of suppliers

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw

materials, components, labor, and services (such as expertise) to the firm can be a source of

power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm,or, e.g., charge excessively high prices for unique resources.

Supplier switching costs relative to firm switching costs

Degree of differentiation of inputs

Impact of inputs on cost or differentiation

Presence of substitute inputs

Strength of distribution channel

Supplier concentration to firm concentration ratio

Employee solidarity (e.g. labor unions)

Supplier competition - ability to forward vertically integrate and cut out the buyer.


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CUSTOMER VALUE ANALYSIS TOWARDS HERO MOTOCORP:-

Companies succeed by providing superior customer value. And value is simply 'quality' -

whichever way the customer defines it - offered at the right price. While this strategic principle is

simple, it is also very powerful. For survival and success, it is far more important to commit

yourself to superior quality and customer value than to commit yourself to attaining financial

goals. Superior customer value is the best leading indicator of market share and competitiveness

(think Hero motocorp). And market share and competitiveness in turn drive the achievement of

long-term financial goals such as profitability; growth and shareholder value.

The first step in achieving leadership in market-perceived quality and value is to understand what

causes customers in your targeted market to make their decisions to decide that one product

offers better value than another. Understanding that is the central objective of customer value

analysis. The factors that contribute to quality in the customer's mind need not be mysterious.

Customers will gladly tell you what they are. A customer value analysis uses information from

customers to show how customers make decisions in your marketplace. With this information,

you have the means to know what to change to ensure that more of them will buy from you.

Some companies focus on a few (sometimes, even just one) customers to deliver extraordinary

value.

Particularly when they are dealing with the world's premier corporations.

For example, Abhishek Industries in Ludhiana, the flag ship company of the Trident Group, has

built an outstanding record for quality, consistency and on-time delivery with Wal-Mart. In turn,

Wal-Mart has recognized Abhishek Industries as the International Supplier of the Year 2001. At

the core of this recognition is customer-perceived quality/value.


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To drive a company wisely, we need a few clear, widely-accepted principles:

Companies succeed by providing superior customer value.

Companies should track the customer value they provide through a method like customer value

analysis.

Companies should use a method of business planning that allows for 'action learning', such as

the war-room method of conducting business meetings.

Companies need a comprehensive strategic navigation system to provide data on both financial

and customer value performance

RESEARCH METHODOLOGY:-

The methodology used in conducting the research work on HERO MOTOCORP with major emphasis on

its sales and marketing strategies involve the following steps:

Why I have selected HERO MOTOCORP only?

I have selected Hero motocorp because it is the company that is growing day by day. It has maximum

market share with comparison to its competitors. And it is the company that gives highest sales and it is

also the highest two-wheeler manufacturer.

Defining the problem and deciding research objectives:

Defining the objective is the most important part of any study process. Proper defining of the problem is a

must for proceeding further with the research process. The type of study to be carried out, the questions to

be raised, the sampling procedure to be followed, and the data to be collected, all depends on a correct

understanding of the problem. Also, by clearly focusing on the real problem, the research job can be

simplified and completed with the minimum cost, effort and data.

Identified problem or the objectives of the research discussed in the report are:

1. Developing the research plan:


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4. Collection of information:

The primary information was collected by face-to-face and direct interviews with the peoples and the

customers. They provide the relevant information regarding the profile of the company as compared to the

other company in the Indian market..

5. Analyzing the information:

The data collected was carefully analyzed. The research and analysis of the information has been done on

the basis of various sales and marketing strategies adopted by the company during its tenure

6. Reporting and conclusions and recommendations:

This is the most vital part of the work undertaken. After collection and analysis of data, it was recorded in

the form as prescribed. The major part of the report is the findings. The finding also includes charts,

tables and diagrams etc. The report also mentioned the limitations of the project undertaken. Then

conclusion has been drawn out of the findings and various recommendations have been given at the end

of there port. Certain tables on the basis of which the findings were made have been included in the

appendices section followed by the bibliography


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INTERVIEW :-

RAHIS ISMAIL SELOT (HERO MOTO CORP LTD)

ASST. MANAGER IN

FORTPOINT AUTOMOTIVE PVT LTD .

MAHIM BEST DEPOT PREMISES,

OPP ST.MICHAEL CHURCH,

L J ROAD, MAHIM.

MUMBAI 400016.

THE HERO MOTO CROP IS ONE OF THE BEST COMPANY IN TWO WHEELER

INDUSTRIES EALIER. WE HAD COLABRETION WITH (HONDA) NOW WE ARE

TOTALLY INDEPENDENT ON OUR PRODUCT .

WE OUR PROUD OF ARE PRODUCT THAT AFTER BEEN APART FROM (HONDA),

YET CUSTOMER CHOOSE OUR PRODUCT AND, WE ARE TRYING ARE LEVEL BEST

TWO SATISFIED OUR CUSTOMER WHILE GIVING BEST SERVICES IN THIS UP

COMING YEAR OUR COMPANY IS TRYING TWO LAUNCH FEW NEW PRODUCT IN

LAST YEAR(2011)COMPANY HAD LAUNCH HERO (IMPULSE).

YOUNG GENERATION OUR CHOOSING OUR COMPANY PRODUCT AND OUR

CUSTOMER IS SATISFIED WITH OUR NEW PRODUCT, HOPE IN THIS YEAR

(2012).WE WILL INCREASE OUR SELL AND FOR THIS THING ,WE REQUIRED OUR

CUSTOMER SUPPORT .HOPE SO THAT FUTHER EVEN YOU ARE SUPPORTING OUR

COMPANY WHILE CHOOSING OUR BRAND (HERO MOTO CORP LTD).


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SCOPE OF THE STUDY:-

Hero motocorp is spreading its wings and widening its business horizon to reach and serve customers at

new centers in the year ahead. The company services are backed by a highly motivated and technology

driven team to achieve customers need, product expertise and geographic reach. The study is oriented

towards the concept of different brands offered by Hero motocorp audits competitors to its customers.

The company has endeavored to move fast in providing market solution, which maximize customer needs

and convenience, using multiple delivery channels in composing the agency network, service centers,

lower service cost and increased efficiency.

LIMITATIONS OF THE STUDY:-

As said a basic research was conducted at the company to enable the company to assess how far the

customers are satisfied with product and services of Hero motocorp. During the course of the study the

following limitations were observed:

The method will be unsuitable if the number of persons to be surveyed is very less as it will be difficult to

draw logical conclusions regarding the satisfaction level of customers.

Interpretation of data may vary from individual depending on the individual understanding the product

features and services of the company.

The method lacks flexibility. In case of inadequate or incomplete information the result may deviate.

It is very difficult to check the accuracy of the information provided.

Since all the products and services are not widely used by all the customers it is difficult to draw realistic

conclusions based on the survey.


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FACTS & FIGURES:-

Sale of Hero motocorp in Rural area and Urban area

In the survey of rural as well as urban area it is found that in rural area the sale of Hero motocorp

is less but in urban area it gives very exiting result. This may be because of the conditions of

roads there

Area % of Respondents

Urban Area 72

Rural Area 28

FAMILY INCOME OF RESPONDENTS:-

The income distribution of the families of respondents shows that the bike, which was considered earlier

to be out of range for middle class families is now becoming very fast an article for them

Family income (Rs.)% of Responses

5000-10000 10

10000-15000 46

15000-20000 36

Above 200000 08


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FACTORS FOR PROMPT TO BUY HERO MOTOCORP:-

It should be stated that the performance is the most important factor followed by look.

The possible combination and corresponding number of respondents are shown in the table

below

Features % of respondents

Performance 18

Look 11

Availability 5

Price 1

Maintenance 4

Brand image 5

After sale service 6

HOW THE RESPONDENT DID CAME TO KNOW ABOUT THE BIKE?

The best media of advertisement (according to which the respondents came to know about the

bike) is the ads on television. Friends & magazine are the other sources. Only 2% of them came

to know through hoardings

Medium of Advertisement % of Respondents

Television 46

Magazine 36

Friends 14

Hoardings 02

Others 02


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PURCHASE OF BIKE:-

Almost 45% of the respondents say that they have purchased the bike by cash. Only 55%of the

respondents say that they have purchased their bike through bank loans

Purchase Type % of Respondents

Cash Purchase 45

Hire Purchase 55

DECISION INFLUENCED BY:-

Maximum no. of the Respondents have taken decision to buy the bike on their own. After

thattheir friends and parents influenced them

Influencer % of Respondents

Parents 16

Self 54

Friends 18

Relatives 08

Others 04

RATING OF BIKES:-

42% of the respondents have rated as the best bike they have used, but it is facing a stiff

competition from Pulsar &Fierro.

Bikes % rating by Respondents

Splendor 38

Passion 08

Ambition 06


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QUESTIONNAIRE FOR THE SURVEY OF MOTORBIKES.

1.Name __________________________________________________

2. Phone No. ___________________ Mobile No. ___________________

3. Age 1822 years[ ]

2327 years[ ]

2832 years[ ]

above 32 years[ ]

4. Do you have any bike in your house? Yes[ ]No[ ]

5. If Yes, Name and Company of the Bike.

________________________________________________________.

6.Which Bike do you like most? ________________________________________________________.

7. Rank the Motorbike manufacturing company.

1.Heromotocorp[ ]

2.Yamaha[ ]

3.Bajaj[ ]

4.Mahindra[ ]

8. Do you remember any advertisement of Hero motocorp?

________________________________________________________

9.What should the price range in your opinion?

Splendor +___________________Sufficient[ ]

CD dawn___________________Sufficient[ ]

Passion +___________________Sufficient[ ]

CBZ___________________Sufficient[ ]

Karizma___________________Sufficient[ ]


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10.Any new facilities or any improvement that you want.

________________________________________________________

_________________________________________________________________

_______________________________________________

11. Give remark to your old Bike Company

.Good[ ]

Very Good[ ]

Excellent[ ]

Out standing[ ]

12.Give remark to Hero motocorp.

Good[ ]

Very Good[ ]

Excellent[ ]

Out standing[ ]

Thanks

Surveyed by: Checked by:


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BIBLIOGRAPHY:-

BOOKS:

Name of the book :- RPH(RISHAB PUBLICATION HOUSING) : - SUNNY FERNANDES Name of the book :- HIMALAYA PUBLISHING: - SUBHASHINI NAIKAR.

MAGAZINES, JOURNALS AND NEWSPAPERS:

Journals published by Hero Honda, Annual Report

INTERNET

WWW.HEROHONDA.COMNEWS PAPER CUTTING

HINDUSTAN TIMES, MUMBAI MIRRIOR.
http://www.herohonda.com/http://www.herohonda.com/http://www.herohonda.com/

Documents

Aleem Khan