MARKETING STRATEGY OF HERO MOTOCORP LTD.

Abhinav Jain
HERO MOTOCORP LTD. [Type the company address] [Type the phone number] [Type the fax number] [Pick the date]

CERTIFICATE FROM INSTITUTE

This is to certify that as per best of my belief the project entitled MARKETINGSTRATEGIES OF HERO MOTO CORP. is the bonfire research work carried our by.under the guidance of , in partial fulfilment of the requirements for the summer training project of the Degree of Bachelor of Business Administration He / She have worked under my guidance ............................... Name:. (Lecturer) Project Guide (Internal) Date:

PREFACE
If we want to go global in the world market then we must know the trend of the market, what features must be there in the product so that it should get popularity among the masses and also should know about competitors position in every field. The objective of survey is to know the strategy of Hero Moto Corp in the world m a r k e t a n d w e m u s t know what should be the price range a n d w h a t t y p e s o f marketing should be done so that it gets familiar with every type of person. So needs and objectives of the market survey is very important to get a good market share ,stand in the market and to survive the business in the present competitive world where there is a trend of cutthroat competition .Hero Moto Corp is a leading company in bikes sector. Knowing the comparative position of a brand vis-vis its competitors is an essential thing as well as product is essential for deciding appropriate marketing strategies for any company.

ACKNOWLEDGMENT
At the very onset, I would sincerely like to thank of building up our confidence, which let to the fulfilment of our project. The completion of this project is due to the help of few individuals whom I cannot let go unhip nded . I wish to express our deep gratitude especially to our guide without whose guidance, support and encouragement. I would have not been able to complete this report that delves cursorily on the aspects of Marketing Strategy of Hero Moto Corp Ltd It is needless to say that any piece of creative work require the involvement of a number of individuals, since i t is beyond the scope of limitation to enlist each and every individuals associated with this work who extended their co-operation in sharing unbiased views and feedback which helped to collect concrete data. Hence, I would express our sincere gratitude to all those who played contributory role directly or indirectly towards accomplishment of our project..

EXECUTIVE SUMMARY
Hero Moto Corp the Principal activities of the C o m p a n y i s m a n u f a c t u r i n g a n d marketing of motorcycles and spare parts. The Company is a joint venture between Hero Group, India. The Motorcycles of the Company features facilities such as four stroke technology, phenomenal fuel economy and low exhaust pollution levels. T h e t w o m a n u f a c t u r i n g facilities of the Company are located in Haryan a . M o t o r c y c l e s accounted for 95% of fiscal 2009 gross revenues and spare parts, 5%. Grows over 500% in five years For 2010-11, volume up by 38 %; net profit soars by 88 per cent; total turnover up by 42 per cent Achieves a high 48 per cent motorcycle market share; and 33 per cent two-wheeler market share Announces 350 per cent final dividend and 250 per cent celebration dividend (over and above special interim dividend of 250%) Over the last five years, company's total turnover grows by whopping 580 %; PAT by 919 % New Delhi, April13, 2011: Hero Moto Corp Co.., t h e n e w l y c r o w n e d W o r l d N o . 1 two wheeler companies, declared outstanding financial results for the year 2010-11. Profit after tax (PAT) is Rs. 462.93 crore, a growth of 88 per cent. The company's total turnover (sales plus other income, net of excise) grew to Rs. 4539.49 crore, a growth of 42 per cent. In a landmark run, the company achieved a 48 per cent market share in the motorcycle category during the ear; and 33 per cent of the total two
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wheeler market. The company recorded accumulative sale of over 14.25 laces motorcycles for the year 201011.The company's Spare Parts business also showed a remarkable increase of 39 %, t a k i n g t h e a n n u a l sales to Rs. 209 crore. E n c o u r a g e d b y t h e r e s p o n s e t h e company has set a target of Rs. 250 crore for the current financial year. Hero Moto Corp's growth over the last five years has been truly outstanding, with both revenue and PAT showing significant jumps of over 5 times. While the revenue increased from Rs. 783 crore in 2008-09 to Rs. 4539 crore in 2010-11. PAT has increased from Rs. 50 crore in 2008-09 to Rs. 463 crore in 2010-11. The total sales has also increased from 2,68,931 motorcycles in 2010-11 to 14,25,302 motorcycles in2 0 1 0 - 1 1 , w i t h volume market share jumping from 27 per cent t o 4 8 p e r c e n t i n motorcycles; and 9% to 33% in two-wheelers . Mr. Brijmohan Lall, Chairman and Managing Director ,Hero Moto Corp., commending the company's achievement said ,"I thank all our stakeholders - our Hero Moto Corp family of employees, ancillaries, vendors, dealers, other business associates, and most importantly, our customers .They have been instrumental in our achieving the World No.1 status. I would also like to make special mention of the excellent support provided all through by our joint venture partners Hero Moto Corp Company, and Hero Cycles Ltd. Our relationship with them has been wonderful
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and mutually satisfying. As we move forward, our collaborative approach will help us continue our lead." On the momentous occasion , Mr. Pawan Munjal, Director and CEO, Hero Moto Corp. Said, "The key reason for our success has been our continuous pursuit of pro-actively delivering value and delight to our customers. This is evident from the pioneering initiatives we undertook during 2011 - like the full twoyear warranty on all Hero Moto Corp models, and the launch of the most comprehensive Customer Relationship Programme, 'The Hero Moto Corp Passport Programme'. Further, despite strong competition and pressures on the economy as a whole, the company has improved operating profits significantly, mainly because of cost rationalization, strong working capital management and manufacturing efficiencies. "He added, "We are committed to continue our lead, by delivering even better value to the customers, in the year ahead. Accordingly, several new and exciting product launches are lined up for 2008-09, and in the future. The manufacturing facilities to support the customer demand would also be pro-actively set up, as has been done till now." Especially present on the occasion was Mr. K Suzuki , Senior Managing Director, Hero Moto Corp Company, Japan, who had flown in only that morning to attend the Press Conference and the World No. 1 celebrations. Clearly ecstatic he said, I congratulate Hero Moto Corp for their wonderful and consistent achievements .
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Last year they achieved the distinction of being No. 1 Joint Venture of Hero Moto Corp Company worldwide; and this year achieved the unique status of World No. 1 two wheeler companies. Our relationship has always been strong and solid. We are proud of this achievement for the Hero Group, Hero Moto Corp Company, and the Indo-Japanese co-operation. We would continue to provide all the necessary support to Hero Moto Corp, for it to remain on the top".

INTRODUCTION
The Indian Two Wheeler Industry The Indian two wheeler sector contributes the l a r g e s t v o l u m e s a m o n g s t a l l t h e segments in automobile Industry. Though the segment can be broadly categorized into 3-sub segments viz; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segment e.g. scooter and stepthru s. The market prima- rily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well-known Japanese firms earlier. But with most of the companies now planning 100% subsidiaries in India. In the process of the share of motor cycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from19% to 17% during the year 2009-10. Hero, a name synonymous with two wheelers in India, began its journey around four decades ago. Starting as a manufacturer of by cycle components, hero has today grown into a multiunit, multi-product, geographically diversified group of companies .The hero group began with simple Philosophy: to provide excellent transportation to the common man, at a price he could easily afford. Even today the dream providing the total satisfaction is all its sphere of activity. To consumers , in excellent products at a n a f f o r d a b l e p r i c e ; a
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thorough understanding the fast Changing c o n s u m e r understanding the fast changing consumer behaviour, new market segment and opportunities, and marketing mix sensitive changing customer needs from the core of Heros marketing strategy and philosophy. Hero Moto Corp. is one of the leading companies in the two wheeler Industry. At present, it is segment with around 47% the market share during financial year 2000-01.The company has emerged one of the most of successful players, much ahead of it competetors by it superior and reliable product quality complemented with excellent marketing techniques. Hero Moto Corp has been an early entrant in the 4stroke segment of the two wheeler industry. With a right mix of product styling and pricing the company has graped the4-stoke market as compared to Bajaj Auto and TVS.TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent as a low cost transportations and provide a tremendous potential is all parts of India. However the company is likely to face threat Bajaj Auto Ltd (BAL) which continued its price based competitions and Hero Moto Corp cycle and Scooter Ltd. a new entrants in the 2 wheeler market .Infact the company has achieved excelled the Industry growth rates by a huge margin . From April to December 2008 while the motor c y c l e i n d u s t r y s a l e s w e r e u p t o 38.68% TVS motors sales surged by a whopping 73.6% sat more importantly it is the success of its model Victor.
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Baja Auto has continued with its impressive perform ance witnessing significantgrowth is the motor cycle and three wheeler segments. Based on the performance fill data one can expect the company to meet it excellence by FY09. Hero Moto Corp is the largest player is the moto r c y c l e s e g m e n t . F o c u s e d o n contemporary design and style, the company has a compare leusine ranges bikes viz; CD-100 DX CD-100 SS Splendor Street Smart Steek CBZ Passion It splendor model is an urban centric with its fuel efficiency which accounts to over 60-70% of its sales. The passion launched in mid Jan. 2001 has a resending success contributing to 26% of its sales. TVS offers a wide ranges of twowheelers motorcyclesVictor/Fiero/Max100/ max100R/Max DL .Scooterette- TVS scooty Moped- chap/XL/XL super/XL supper HD/sports. TVS plans to launch 4 new models in the coming 15 months. A 4-stroke version of I ndias best selling scooterttes; TVS-scooty and 410

stroke version of the existingmoped line will be launched this year.2 Bajaj Auto Ltd: Offer product a service to the customers so as to satisfy their needs .Its having 4stroke single cylinder natural air cool the displacement of engine is111.6 CC having the engine power i t 7-7 bhp at 7000 spm. The bike is having a hydrometric disc brake in front wheel. Flash is an added future in the bike. In 1993 BAL manufactured 12 different model 5-5 scooter model, 3-motorcyclemodel, moped model, 3three wheeler model. But in the recent year Bajaj developed various model in the motorcycle segment which providing good riding conditions is urban road as well as ratter roads. Scooter-cub/super/super FE/chetak/stride/Msl Priya. Moped- Bajaj Sunny. Motorcycle- M80/kawasaki RTZ/Kawasaki45 by 1993 and latest m o d e l a r e . Eliminator/Pulsor 180/Pulsor 150/Boxer/Caliber Crowa/Caliber Sales performance of the player: Hero Moto Corp repeated a y-o-y growth of 6.3% is its motorcycle sales for the month of Jan 2006 at 1,45,708 units. Export during the month
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have surged almost64% y-o-y. On a month on-month basis the sales growth has been even higher up16.5%. Bajaj Auto: Bajaj auto has reported y-o-y growth of 19.8% in motorcycle sales for Jan2 0 0 6 a t 7 5 0 5 9 u n i t s . On a month-on month basis the growth is 8.8%. E x p o r t performance continues to be impressive with 10,089 two and three wheelers exported in Jan 2006, a growth of 98.6% y-o-y. Two wheeler sales for the current year are up 6.8%. The growth is driven sharply in the motor cycle sales upto 37% in two wheeler segment, the share of motor cycle has jumped from 52.8% to 67.8% during the current year. this sharp growth in the motor cycle can be attributed to the positive response received by its need products and the encouraging performance of select existing model. India is the second largest manufacturer and producer of two wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc .The Indian twowheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until
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1958, API and Enfield were the sole producers .In 1948, Bajaj Auto began trading in imported Vespa Scooters and three-wheelers. Finally, in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the ini tial stages, the scooter segment was d o m i n a t e d b y A P I , i t w a s l a t e r overtaken by Bajaj Auto. Although various government and private en terprisesentered the fray for scooters, the only new player that has lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. I t was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years .The Motorcycles segment was no different, with only three manufacturers viz Enfield, ideal Jawa and Escorts. While Enfield bullet was a four stroke bike, Jawa and the Rajdoot were two-stroke bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. The two wheeler market was opened to foreign competition in the mid-80s. And the then market leaders- Escorts and Enfield were caught unaware by theonslaught of the100cc bikes of the four IndoJapanese joint ventures. With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Moto Corp then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Moto Corp brought in the first twostroke and four stroke engine motorcycles
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respectively. These two players initially started with assembly of CKD kits, and later o n p r o g r e s s e d to indigenous manufacturing .In the 90s the major growth for

COMPANY PROFILE

Fill it. Shut it. Forget it What started out as a Joint Venture between Hero Group, the world's largest bicycle manufacturers and the Hero Moto Corp Company of Japan, is today the leading manufacturer of India's largest selling motorcycle. Coming into existence on January 19, 1984. Hero Moto Corp gave India nothing less than a
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revolution on two-wheels made even more famous by the 'Fill it - Shut it - Forget it' campaign. Driven by the trust of over 30 lakh customers, the Hero Moto Corp product range today commands as much as 47% making it a veritable giant in the industry. Add to that technological excellence, an expansive dealer network, and reliable after sales service, and you have one of the most customer-friendly companies .I n f a c t , e v e r y second bike sold in India today is a Hero Moto Corp ! Customer satisfaction, a high quality product, the strength of Hero technology and the Hero group's dynamism have helped HML scale new frontiers and exceed limits .In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director ," W e w i l l continue to make every effort required for the development of the motorcycle industry, through new product development, technological innovation, a n d investment in equipment and facilities and through and through efficient management."

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MILESTONE KEY MILESTONES OF HERO MOTO CORP Year Event 1983

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Joint Collaboration Agreement with Honda Motor Co. Ltd. 1984 Hero Honda Motors Ltd. incorporated 1985 First motorcycle "CD 100" rolled out 1987 100,000th motorcycle produced 1989 New motorcycle model - "Sleek" introduced 1991 New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle produced 1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal 1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced 1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated 1998 2,000,000th motorcycle produced 1999
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New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal 2000 4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared 'World No. 1' - largest selling single twowheeler model "Hero Honda Passport Programme" - CRM Programme launched 2001 New motorcycle model - "Passion" introduced One million production in one single year New motorcycle model - "Joy" introduced 5,000,000th motorcycle produced 2002 New motorcycle model - "Dawn" introduced New motorcycle model - "Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors 2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "CD Dawn" introduced
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New motorcycle model - "Splendor +" introduced New motorcycle model - "Passion Plus" introduced New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced Hero Honda became the World No. 1 Company for the third consecutive year. Crossed sales of over 2 million units in a single year, a global record. Splendor - World's largest selling motorcycle crossed the 5 million mark New motorcycle model - "CBZ*" introduced Joint Technical Agreement renewed Total sales crossed a record of 10 million motorcycles 2005 Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "Achiever" introduced First Scooter model from Hero Honda - "Pleasure" introduced 2006 Hero Honda is the World No. 1 for the 5th year in a row 15 million production milestone achieved 2006 Hero Honda is the World No. 1 for the 5th year in a row 15 million production milestone achieved
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2007 Hero Honda is the World No. 1 for the 6th year in a row New 'Splendor NXG' launched New 'CD Deluxe' launched New 'Passion Plus' launched New motorcycle model 'Hunk' launched 20 million production milestone achieved 2008 Hero Honda Haridwar Plant inauguration New 'Pleasure' launched Splendor NXG lauched with power start feature New motorcycle model 'Passion Pro' launched New 'CBZ Xtreme' launched 25 million production milestone achieved CD Deluxe lauched with power start feature New 'Glamour' launched New 'Glamour Fi' launched 2009 Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched Splendor completed 11 million production landmark New motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations 2010 New model Splendor Pro launched Launch of new Super Splendor and New Hunk 2011 New licensing arrangement signed between Hero and Honda (Hero Honda is renamed as Hero) Launch of new refreshed versions of Glamour, Glamour Fi, CBZ Xtreme, Karizma
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Crosses the landmark figure of 5 million cumulative sales in a single year

KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY At Hero Moto Corp, our goal is not only to sell you a bike, but also to help you everystep 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 Moto Corp takes a stand asa socially responsible enterprise respectful of its environment and respectful of theimportant issues.Hero Moto Corp has been strongly committed not only to environmental conservation programmes but also expresses the incr easingly inseparable balance between theeconomi c concerns and the environmental and social issues
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faced by a business. A business must not grow at the expense of mankind and man's future but rather mustserve mankind."we must do something for the community from whose land we generate our wealth."A famous quote from our worthy chairman mr.brijmohan lall munjal. ENVIRONMENT POLICY WE at Hero Moto Corp 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, whereviable and strengthen the greening of supply chain.Continue product innovations to improve environmental compatibility. Comply with all applicable environmental legisl a t i o n a n d a l s o c o n t r o l l i n g o u r environmental disc harges through the principles of "alara" (as low as reasonablyachievable). Institutionalise resource conservation, in particular, in the areas of oil, water, electricalenergy, paints and chemicals.Enhance environmental awareness of our employees and dealers / vendors, while promoting
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their involvement in ensuring sound environmental management. QUALITY POLICY Excellence in quality is the core value of Hero M o t o C o r p ' s p h i l o s o p h y . W e a r e committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exc eed customer's growing aspirationsthrough: Innovation in products, processes and services. Continuous improvement inour total quality management systems. Teamwork and responsibility. MISSION STATEMENT IN PURSUIT OF EXCELLENCE We, at Hero Moto Corp, are continuously striving for synergy between technology,systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain thehighest standards of ethics and societal responsibilities, constantly innovate productsand processes, and develop teams that keep the momentum going to take the companyto excellence in the new millennium". WE CARE FOR ENVIRONMENT A philosophy closest to Hero Moto Corp is that which pertains to the environment,which is why the company goes that extra step to ensure that each one of the hightechnology 423

stroke Hero Moto Corp motorcycles meet the most demanding of pollution norms at every level. This is a policy that the company has followed sincethe very beginning. WE CARE FOR COMMUNITY Hero Moto Corp is a company with a difference . C o n s t a n t l y i n v o l v e d i n s o c i a l activities, spreading. Awareness about the community and environment, the companyh a s t a k e n a g i a n t s t e p i n t h e f i e l d s o f H e a l t h c a r e ; E d u c a t i o n ; E n g i n e e r i n g ; Environm ent and many more INTERNATIONAL MARKETING Based on our own brand of globalization, they have built our distribution network over 60 countries worldwide and multiplied our exports from 5 percent of total turnover in Fiscal 2007-08 to over 15 percent in Fiscal 2010-11. Motorcycles form the major chunk of the sales revenue of Hero Moto Corp. A small proportion of the revenue comes from the sales of spares. The proportion of salesrevenue coming from each of these two segments in the FY10 is depicted in the graph below:

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MAIN OBJECTIVE OF COMPANY Through the company has wide list goals to be achieved but the major objective of thecompany has to achieve areas follows: To provide right product to right people at right time. Price should be reasonable; by this every level of person can afford t h e product To maximize the share holders value by customer value enhancement Changes should be according to prospective customer To provide delivery of standard product. To provide value for money to there consumers.

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COMPETITORS OF HERO MOTO CORP BAJAJ The Bajaj Group came into existence during the turmoil and the heady euphoria of I n d i a ' s f r e e d o m s t r u g g l e . J a m n a l a l B a j a j , f o u n d e r o f t h e B a j a j G r o u p , w a s a confidante and disciple of Mahatma Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication, resourcefuln ess and determination to succeedwhi ch are characteristic of the Company today, are often traced back to its birthduring those long days of relentless devotion to a common cause.Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the ageof twenty-seven. Putting the Nation before business, he devoted himself to the latter only after India achieved independence in 1947. But when he did so, he put his heartand soul into it. Within a short while, he not only consolidated the Group, but alsodiversified into various manufacturing activities, elevating the Group to the status itenjoys till this dayRahul Bajaj today heads the Group. He has
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been the Chief Executive Officer of Bajajsince 1968 and is recognized as one of the most outstanding business leaders in India.As dynamic and ambitious as his illustrious predecessors, he has been recognized for his achievements at various national and international forums. Bajaj is currentlyIndia's largest two and three-wheeler manufacturer and one of the biggest in theworld. Bajaj has long left behind its annual turnover of Rs.72 million (1968), tocurrently register an impressive figure of Rs.42.16 billion (US$ 936 million).

TVs- Ltd: They have a vision of being a highly profitable and socially responsible, leadingmanufacturer of high value, environmentally friendly, lifetime personal transportation products for customers in global markets and to provide fulfillment and prosperity for employees, dealers and vendors Suzuki TVS Suzuki broke out of the bottoming formation with a rise in volume and wentinto a major uptrend. The stock is well above its rising 30 WMA and its earlier intermediate bottoms, and hence, the major trend of
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the stock is up. The relativestrength line for the stock ha s moved past its zero line, indicating that the stock isout performing the indices. Investors ust hold on to the long positions in the stock while more long positions in the stock must be added after the next intermediatecorrection.The intermediate trend of the stock is still up and investors will have to wait for somemore time before the stock actually goes into an intermediate downtrend. Keep a closewatch at the stock and investors holding the stock must continue to do so. Tradingvolumes are less, and hence, investors must pick small quantities. LML LML is also in a major uptrend like the other stocks in this sector, as the stock moved past its earlier intermediate top and its 30 WMA in the current intermediate rise. Thestock is still in an intermediate uptrend and is currently moving sideways. It coulddrop into an intermediate downtrend on a close below 19. The breakout by the stock was not accompanied by a rise in volume and this is not a very bullish sign. Thus,investors must look at other stocks in this sector which are also in a major uptrendand are more stronger. The relative strength line has moved above its zero line andcould fall back if the stock goes into an intermediate downtrend. Investors mustalways pick up the strongest stocks in the strong sector, and hence, must avoid thisstock, even though it is in a major uptrend.
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KINETIC MOTORS Kinetic Engineering Ltd., founded in the year 1970, is the leading manufacturer andexporter of 2-wheelers. Born of the vision of the late Shri H. K. Firodia, KineticEngineering Ltd., it has produced useful, heart - winning products for over twodecades. KEL manufactures a wide range of Mopeds, Scooters and Motorcycles thatare very popular in the country and are well recognized for their fuel economy,quality and reliability.KEL has 3 manufacturing plants at Ahmednagar Pitampur (I ndore) an Goregaon(Pune) with the capacity to manufacture 4 lakh vehicles per year. Their well endowedtechnologically advanced manufacturing set up have enabled them to reach highquality standards. The company also exports these vehicles to countries like USA,Canada, Sweden, Latin America, Denmark and the Middle EastAn agreement has recently been reached between Yamaha Motor Co., Ltd. (YMC)and its joint venture partner in India, Escorts L imited (Chairman and ManagingDirector: Mr. Rajan Nanda. Location: Faridabad, suburbs of New Delhi) under whichYMC will acquire all of the 26% of the stock presently held by Escorts Limited in the two companies 'motorcycle manufacturing and marketing joint venture, Yamaha Motor Escorts Ltd. (YMEL).The aims of this move to make Yamaha Motor Escorts a 100% YMC subsidiary are to increase the overall speed of managerial and business decisions, to improve product development capabilities and production efficiency, while also strengthening the
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marketing organization. Plans call for the change in the company's name and other procedures to be completed by the end of June. Ever since the establishment of the first technical assistance agreement between thet w o c o m p a n i e s i n 1 9 8 5 , Y M C a n d E s c o r t s L i m i t e d h a v e b u i l t a c o o p e r a t i v e relationship dedicated to the manufacture and sales of Yamaha brand motorcycles in an environment of growing motorcycle demand in the Indian market. In November of 1995, the two companies established the joint venture company Escorts Yamaha Motor Limited, based on a 50-50 capital investment. In June of 2005, that investment ratio was changed to 74% for YMC and 26% for Escorts Limited and YMC assumed managerial control of the company with the name being changed to YMEL and undertook numerous measures to build the company's motorcycle manufacturing and marketing operations. In addition to YMC acquiring Escorts' 26% of YMEL stock, the company's name will be changed to Yamaha Motor India Private Limited (YMI) and concerted efforts will be made to heighten its competitiveness in the Indian market and promote the spread of the Yamaha brand with target themes of developing products with greater appeal and a distribution network that can respond more quickly to user needs.F u r t h e r m o r e , Y M C w i l l w o r k t o d e v e l o p Y M I a s a n e x p o r t e r o f b u s i n e s s t y p e motorcycles to neighboring countries and other markets such as Africa and Latin America, and also as a production base that can assume a variety of roles in Yamaha's global manufacturing network. Presently, India's annual motorcycle demand has grown to exceed 3.8 million
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units, w h i c h m a k e s i t t h e second largest market in the world, w i t h s t e a d y g r o w t h i s anticipated for the future. Now that YMI has become a 100% YMC subsidiary, the introduction of several new models is planned, and it is our goal to increase annual production to 350,000 units in the fiscal year 2005 and to 550,000 units by the fiscal year 2010 .

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SWOT ANALYSIS

STRENGTH OPPORTUNITY

WEAKNESS THREAT

STREANTH

Huge brand equity/reputation among customers. Models/products Healthy growth in profits Brilliant relations with customers and dealers. Strong Research & Development. Good advertising and excellent rebranding from Hero Honda to Hero Moto
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Corp

WEAKNESS

Absence in the premium bike segment High imports for its spare parts i.e. over 30% imports Exports has never grown beyond 4% Most of the products have similar features and low on design and innovation

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 Two-wheeler segment is one of the most growing industries OPPORTUNITY Export of bikes is limited i.e. untapped international markets can still make it up by launching a strong model in 150cc segment HHML.

THREAT

Exports market is yet to be properly exploited. Cruiser bike segment is unexplored by HHML.. Variants can be launched to increase the market share. Hero Honda is the most reliable bike manufacturer in India strong brandfollower. Strong competition from Indian as well as international brands

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DATA PRESENTATION Marketing Strategy A thorough understanding of the fast changing Marketing Strategy, new market segments and product opportunities along with sensitivity to changing customer needs ,form the core of Hero's marketing strategy and philosophy. A t Hero we essentially have a completely customerdriven approach. A n a t i o n w i d e d e a l e r n e t w o r k comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225 franchiseholders for motorcycles, ensures convenient access to the Group's products across the country. With a deep sense of belonging to the Hero fraternity, the Group's dealer network hascatalyzed growth and acted as a strong bridge between the customers and the Group.

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Conventionally,very few I ndian bicycle manufactur ers were interested in exports. However, the Hero Group's foray into the overseas markets pioneered Indian exports inthe bicycle segment as early as 1963. It was a move prompted primarily by the need to be attuned to the global marketplace.While initial exports were restricted to Africa and the Middle East, today more than 50 percent of the Group's bicycle exports meet the demands of sophisticated markets inEurope and America. This is primarily because of appropriate product development andexcellent quality that Hero offers.The Group has undertaken a steady up gradation of technologies and there has beendiversifications and setting up of newer establishments to meet stringent internationals t a n d a r d s . At the core of it all is a customer c e n t r i c s c h e m e o f p o l i c i e s a n d production ... and the bottom line is to "Add Value while Engineering Satisfaction."

PARTNERSHIPS, ALLIANCES AND JOINT VENTURES Hero's quest for a low-budget, fuel-efficient and environment-friendly two-wheeler led Hero Moto Corp to enter into a Technical Collaboration with Steyr Daimler Punch of Austria in 1987 for the manufacture of the 65cc, Porsche-design mini-motorcycles.

36

 Munjal Showa Limited was formed in Technical and Financial Collaboration withShowa Corporation, Japan, to design, develop and manufacture of front forks,shock absorbers, struts and gas struts. Sunbeam Auto Limited has set-up a state of the art piston manufacturing facilityin technical collaboration with M/S Hero Foundry Company Limited of Japan, the pioneers in the world for manufacturing high-strength lightweight pistons used inlight, powerful fuel-efficient engines Munjal Auto Industries Limited has a jointventure with the State-owned Gujarat Industrial Investment Corporation, to cater to the needs of the overseas market. Hero Cycles CR Division was set up in consultation with MECON, Asia's largestengineering consultants and in Technical Collaboration with Wean United, USA. Hero Cycles Cold Rolling Division has also entered into a technical collaborationwith Kawasaki Steel Corporation, Japan for the improvement of production yield, e l i m i n a t i o n o f d e f e c t s , reduction of customer returns and enhancemen t o f maintenance operations against certain predetermined targets. QUALITY Quality at Hero is attained not just by modern plants and equipment and through latesttechnology, but by enforcing a strict discipline.
37

At the Group factories, attainingquality standards is an everyday practice - a strictly pursued discipline. It comes froman amalgamation of the latest technology with deep-rooted experience derived fromnearly four decades of hard labor.It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Conformance to quality at Hero begins on the shop floor. Every worker ensuresat each stage of manufacturing that any of the faulty products are not allowed to gothrough further manufacturing and distribution cycles. Today quality is ensured from steel processing t o the finished product. Eachcomponent goes th rough numerous tests at the stages of design, r a w m a t e r i a l procurement and, of course, during the manufacturing process. Constant technology up gradation ensures t h a t t h e G r o u p s t a y s i n t h e g l o b a l mainstream and maintains its competitive edge. With each of its foreign collaborations, the Group goes onto strengthen its quality measures as per the book. The Group alsoemploys the services of independent experts from around the world to assist in newdesign and production processes. Nevertheless, in this race to acquire the most modern techniques and technologies andto collaborate with the most advanced players in the market, the core competence continues to be derived from the Group's philosophy - "To Engineer Satisfaction."

38

RESEARCH METHODOLOGY
DATA COLLECTION SOURCES: According to chosen project I decided to find out the raw information and data collection regarding the topic for that most of the time I decided with HERO MOTO CORP city owner as well as thank for the technology that really is curious and helping out in finding of raw information which I listed to web sites of HERO MOTO CORP. DATA COLLECTION TOOLS: There are two sources for the data collection, primary and secondary sources. PRIMARY SOURCES: As per my requirement to know about brand loyalty of HERO MOTO CORP brands. I have been conducting open ended questions and close ended questions , those will allow us to understand and making bright picture of brand loyalty . SECONDARY SOURCES: Secondary research includes information from magazines, internet, encyclopedia, books, newspapers, articles, etc. I have conducted secondary research from internet, magazines, newspapers, etc.

39

MARKETING MIX
Product mix Price mix Place mix Promotion mix

Product Mix Quality Service Desig n Brand Name Feature s Warrenties Product Variety

Price Mix

List Price

Discount

Allowance

Payment Period Credit

40

Place Mix Channels Coverage Transportation Assortment Inventory

Promotion Mix Sales Promotion Public Relation Direct Marketing

Advertisment

41

MARKETING MIX: Standardised Marketing Mix: An international marketing strategy for using basically the same product, advertising,distribution channels & other elements of the marketing mix in all the countries of companys international market. Adapted Marketing Mix: An international marketing strategy for adjusting the marketing mix elements to eachinternational target market, bearing more costs but hoping for a larger market share &return. International Scenario : A two-wheeler is used as a personal/family vehicle or a goods carrier in the envelopingcountries, whereas it is confined to sports/racing (heavy motorcycles) or short istanceshopping (mopeds) in developed countries. The world twowheeler market is dominated by Jap an. Japanese manufacturers account for around 65% of the total two-wheeler production in the world. However, production within Japan has been declining due to lower domestic demand and shiftin manufacturing base outside the country. Japan is also the world's largest exporter of two-wheelers in the world controlling around 75% of the world trade. Its major markets are China, USA and Europe. In terms of
42

player positions, Hero Moto CorpCorporation, Yamaha Motors and Suzuki Motors Corporation share the top three slotsin the world two-wheeler market. The table below shows the production and salesfigures of motorcycles and scooters in Japan during the past decade More than 50% of the production in Japan is exported out of the country. This scenario contrasts directly with the Indian scenario. In India, only about 15% of the production in FY11 were exported. The Asian continent is the largest user of two-wheelers in the world. This is due to poor road infrastructure and low per capita income, restrictive policy on car industry.The technology for two-wheelers is not as well developed as for car industry. This is d u e to oligopoly between top five players in the seg m e n t , c o m p a r e d t o t h i r t y manufacturers in the car industry.

43

EXPORTS

Hero cycles Hero moto Corp Hero Puch HERO CORPORATE SERVICES (Herosoft, HeroMindmine, Hero serveIT Munjal show a limited

44

PLACEMENT OF HERO MOTO CORP Hero Moto Corp Limited sells the motorcycle through a widely spread all India networks of over 450 of dealers. The motorcycle can be serviced at the authorized dealers or SSPs (Spare and Service points).In the year 1996, Hero Moto Corp was the first company to introduce Indias first chain of automated services workshops. To expand the service network further to smaller towns, thecompany has appointed Service extensions.Hero Moto Corp genuine spare parts are available from the dealers, SSPs and the stockiest.The company provides good after sales service through its well-established dealer network.The company has a policy of three S, Single S for stockiest, Double S for services and threeSSS for sales.The company is having about 460 of SSS, which deals in Sales, Service, and Stock, 260 of SS, which deals in Service and Stock and 12 of S, which exclusively deals in stocks.The Network As On 31st March 2002 Is As Under: Dealers (3s_-Sales, Service, Spares)-458, Ssps (2 S-Service And Spares)-256, Stockiest (Single S-Spares)-12The company has developed a unique distribution network, which has given it a distinctivecompetitive advantage. The whole idea behind establishing this vast distribution network isto reach the customer even in the remote areas.The company has segregated the areas as Urban, Rural, and semi rural and has appointeddealers in many of these areas, after seeing the potential. The companys major thrust is theeasy availability
45

of all the models in every part of the country.The companys bikes are sold through the dealers and they are required to provide proper Infrastructure , Workshops, Facilities, and trained Personals. The dealers are given targets and they are required to sell sufficient number of vehicles to earn a return on investments.Regional offices are in constant touch with these dealers.Presently the company is having 8 regional offices in the country. The regional officesconstantly assist these offices as a kind of linkage between the company and the dealer andthe dealers. The sales and the marketing personals at the regional offices are trained andencourage maintaining a cordial relationship with various dealers on the basis of trust and understanding . The companys service engineer and the other sales staff supervise all thefacilities at the dealer and the service outlet from planning the layout to the errection of thespecially designed benches and the tools. Infact all the possible efforts are made by the company to make the dealers to become the part of the Hero family and its culture .The company has appointed fleet of more than 400 trucks from around 45 transporters toassist them in the delivery of vehicle. From the factory and within the factory premises, the company has a good fleet of trucks and trailers. The company to deliver the vehicle to the dealers showroom in the gactory fresh condition uses these trucks and trailers. The cargosare loaded in the trucks and the trailers and they are delivered at the stockyards of thedealers in whichever part of the country they may be located. So the company in this way delivers the motorbikes in the
46

fresh factory conditions. By the time the bike reaches our dealers they might have done hardly a coupler of kilometers. The company believes themarketing efforts should go beyond ensuring product availability.The focus is therefore on a vast distribution network. In order to ensure the customers a better quality service at the various stations, the company mounts an effective training porograme in which all the mechanic, supervisory staff and the other senior staff personnel participate.The company is also planning to set up some of the fully equipped express authorizedh i g h w a y . I n t h e s e h i g h w a y s , o n e would see a H e r o M o t o C o r p d e a l e r e v e r y 1 5 - 2 5 KMS. This concept is thought by the company with a view to provide good after salesservices to the customer. This exercise will also check the company to check the use of spurious products, which ultimately spoil the bike. The highways to be covered in thisscheme are: NEW DELHI-GWALIOR NEW DELHI-CHANDIGARH AMBALA-LUDHIANA KOLKATTA-DHANBAD

The company has a dream to increase this figure of 458 dealers to 650 by the end of 2003and increase the figure of 256 service stations to 350 by the end of the year 2003.Thecompany is going by an expansion process.The company is perhaps the second company
47

after Maruti Udyog Limited to implement afactory fresh concept. The company is the only company in the two-wheeler segmenthaving so much of vast distribution network. Hero Moto Corp will be adding 25 moredealers and 50service stations to build a network of 575 dealership-cum-service points (including 400 dealerships) across the country.The level of investment in an automated Hero Moto Corp service station is expected to bearound Rs 10 lakh, apart from land and building. ``No dealer has any problem in expanding business,'' says Tapan, Marketing manager. ``We've tied up with Citibank and Centurion to provide bill discounting through our dealers. Consumer Finance: In order to focus onorganized consumer financing, Hero Moto Corp tied up with Tata Finance a week ago. Thisis Hero Moto Corp's second tieup following Centurion, which is accounting for around3,000 bikes a month through 100 dealerships.A thorough understanding of the fast-changing consumer behaviour, new market segmentsand product opportunities along with sensitivity to changing customer needs, form the coreof Hero's marketing strategy and philosophy. At Hero we essentially have a completelycustomer-driven approach. A nation-wide dealer network comprising of over 3,500 bicycle d e a l e r s , 3 5 0 d e a l e r s F o r mopeds and 225 franchise holders f o r m o t o r c y c l e s , e n s u r e s convenient access to the Group's products across the country.With a deep sense of belonging to the Hero fraternity, the Group's dealer network hascatalysed growth and acted as a strong bridge between the customers and the Group .C o n v e n t i o n a l l y , v e r y f e w I n d i a n
48

bi cycle manufacturers Were i n t e r e s t e d i n e x p o r t s . However, the Hero Group's foray into the overseas markets pioneered Indian exports in the bicycle segment as early as 1963. I t was a move prompted primarily by the need to be attuned to the global market place.While initial exports were restricted to Africa and the Middle East, today more than 50 per cent of the Group's bicycle exports meet the demands of sophisticated markets in Europe and America. This is primarily because of appropriate product development and excellent quality that Hero offers. The Group has undertaken a steady up gradation of technologies and there has been diversifications and setting up of newer establishments to meet stringent international standards. At the core of it all is a customer-centric scheme of policies and production and the bottom line is to "Add Value while Engineering Satisfaction.

49

PRODUCT STRATEGIES OF HERO MOTO CORP Hero Hero shifted its focus from catering to the fuel efficient conscious consumer to trya n d o c c u p y o t h e r s e g m e n t s o f t h e m o t o r b i k e m a r k e t a n d t h e r e f o r e t h e n e w p r o d u c t launches from Hero Moto Corp in the last three year have been in this direction. Thecompany has also upgraded some of its bikes to stay in contention and to meet Euroemission norms. The new underlining theme for the company One for everyone has ledto the launching of new products, which are as follows: Street Smart: Hero Moto Corp introduced its Street Smart in 1997. The company whowere more inclined towards the scooters and who thought that the scooters were more safer than the motorcycles, thus Hero Moto Corp decided to launch the Street Smart. The bikewas built in such a way that i t resembled more like a scooters, than a motorcycle, butactually it is a motorbike. I.e. it is a hybrid Product Description (HERO MOTO CORP Ltd.) Hero Moto Corp has launched the following motorbikes in the Indian market. HERO MOTO CORP CD 100 HERO MOTO CORP CD 100 SS
50

 HERO SLEEK HERO MOTO CORP Splendor HERO MOTO CORP Street Smart HERO MOTO CORP CBZ HERO MOTO CORP Joy HERO MOTO CORP Passion HERO MOTO CORP Ambition

Hero Hero shifted its focus from catering to the fuel efficient consciousconsumer to try and occupy other segments of the motorbike market and therefore thenew product launches from Hero Moto Corp in the last three year have been in thisdirection. The company has also upgraded some of its bikes to stay in contention and to meet Euro emission norms. The new underlining theme for the company One for e v e r y o n e h a s l e d t o t h e l a u n c h i n g o f n e w p r o d u c t s W i t h t h e l a u n c h o f n e w motorbikes and various other motorbikes in the pipeline, Hero Moto Corps strategyis to get into these segments of the motorcycle market where they have not made inroads earlier.

51

PRICING STRATEGIES OF HERO MOTO CORP The company has a policy to price its product very competitively. In todays world,one cannot has a skimming pricing says Mr. Tapan, marketing manager, Hero MotoCorp. Necessarily the pricing policy is completely a blend of two strategies i.e.Penetration and Skimming. It has been the companys policy to provide the customerswith value for money-give more for less. We are the only company in the two wheeler segment that is in the process of passing on the whole benefit of cost advantageachieved as a result of the increased localization levels of upto 60% to the customers.We are in the process of keeping our product increasing popular and affordable. Thecompany keeps telling its customers to think about Quality rather than price. Further if one talks about the changes in the price in the last three years, the prices have never been changed except the budgets except once in APRIL 2011,when the companystarted off with their
52

celebration offer, and thus decided to sanctioned a discounta n d c u r t a i l o n e v e r y M o d e l R s 1 0 0 1 \ - . T h e c o m p a n y i s s u r e l y i n a b u s i n e s s o f delivering quality rather than price. For instance the Boxer, which is of only 29,990and is the cheapest bike of the industry. The company gives importance to the qualityrather than cheap products.Well Hero Moto Corp has bikes at different price point but there is one commonthing that is they are priced at a premium of INR 2000- 3000 from the competitorsand it seems their strategy is working fine with the target customers as it is the largestseller of bikes in the Indian market with a market share of 48 % .Customers are redyto shell out the extra money because they believe and its fact that the fuel efficiencyof the bikes is much better than its competitors the different price points for HeroMotors Limited are :

NAME Dawn Splendor Passion Cbz

PRICE 32,000 41,000 44,000 52,000 60,000

Thus we find that HML has bikes for every one for entry level customers they haved a w n w h i c h i s a n o f r i l l a t t a c h e d p r o d u c t w h o s e e m p h a s i s i s o n m i l e a g e w i t h performance
53

.And for customers who like to have bike which is good at performanceand with descent looks they have Splendor which is their fastest selling bike and account for half of the total sales. C u s t o m e r s w h o a r e l o o k i n g f o r s t y l e w i t h perform ance can go for Passion which is a huge success among the urban class as it is priced little bit higher than splendor and the looks of the bike are astounding. For customers who want style and power they have CBZ which is targeted towards the premium segment and it was a runaway success initially but is not a hot seller nowdue to some problems. Hero Moto Corp is planning to introduce few more models inyears time in order to make their portfolio of products more versatile. They are tryingto introduce new models and they are trying to introduce models at the premiumsegment as it has high margins and the company feels that its the segment which iswill grow in the near future as the income of people will increase with the change of life styles .HML also intend to introduce few models which are economical in natureas they this segment provides the volumes to the company. Hero Moto Corp stillwants to charge a price of premium as its brand enjoys a high level of respectabilityand reliability among the target customers as their products have already proved their mettle in the market and enjoy high level of brand equity among the target customers.Hero Moto Corp has an advantage of large no of dealers and also
54

economies of scalewhich help them to absorb the costs to a great extent.

55

PROMOTIONAL STRATEGIES OF HERO MOTO CORP Hero Moto Corp rides safe Hero Moto Corp's `Ride Safe and Good Rider' campaign is aimed at communicatingthe philosophy of delivering safe products and promoting good driving for the overallsafety of the Hero Moto Corp customer. Created by McCann Erickson, the ad-HeroMoto Corp cares for your safety--invited all Hero Moto Corp owners to attend theRide Safe programme on October 27, 2011 at Delhi's India Gate lawns. This was the first phase of the programme, where three instructors from Japan demonstrated techniques of right driving. In the second phase, Hero Moto Corp will communicatethe launch of the 4S concept (sales, service, spare parts and safety) at Hero Moto Corpdealerships. The focus of the third phase will be to promote the launch of the HeroMoto Corp Safety Riding Promotion School, which will have riding simulators andsafety riding tracksHero Hero will take the riding programme-- where trained personnel will give ridingtips to bike owners-- to over 100 dealerships across 90 towns. Promotion in this sector cannot be like th a t i n t h e F a s t M o v i n g A u t o p a t s (Automobile) sector. The promotions in this sector are like 0% finance schemes and other sort of things. The company takes the services of many good and reputedadvertising agencies like Reddifuusion, Lintas,
56

sachi & Sachi and others. The company has also signed a kind of agreement with two celebrities just now to betheir brand ambassadors. Hero Moto Corp, a leading manufacturer of motorcycles,has roped in film actor Hrithik Roshan and captain of Indian Cricket team SouravGanguly as its brand ambassadors for three years till 2003.They would endorse the company products, attend corporate and brand events andhelp promote its "we care" campaign comprising safety riding, environment, and friendliness. Hrithik and Ganguly said they were glad to be associated with Hero Moto Corp. Herohas embarked upon an ambitious project to achieve sale of one million bikes this year with a market share of 47 per cent. The turnover would be in excess of Rs. 3000 crore.In October alone, 1,12,000 motorcycles have been sold, Compared to 66,063 units inthe corresponding period last year, the increase in sales is a phenomenal 69 per cent.Cumulative sales jumped up by 41.58 per cent to 5.72 lakhs units during April-October as against 4.04 lakh units in the same period last year.At Hero Moto Corp , our goal is not only to sell the customer a bike, but also to helphim at every step of the way in making the correct riding decisions. Assisting him inmaking the right judgments on the road, and helping him to choose the right helmetand other riding equipmentAnd as bike handling requires know-how, skill, and rigorous mental conditioning, wehave put together certain safety tips and suggestions that will enhance the
57

ridingcomfort. Last but not the least, it is always important to remember - a good rider is asafe rider.Hero Moto Corp is enhancing the Advertising &Promotion budget by around 35 per c e n t f r o m R s 4 1 c r o r e i n 1 9 9 9 - 2 0 0 0 . A p a r t f r o m c o n c e n t r a t i n g o n m a i n s t r e a m Splend or-- the world's largest selling bike-- and upscale CBZ motorcycles, Hero MotoCorp has identified ``soft areas'' like services and spares parts for the purpose of intense communication. The creative account of Hero Moto Corp rest with big nameslike Hindustan Thompson Association, Lintas, Sachi and Sachi and so on. Hero MotoCorp is also planning a major campaign to re-launch the restyled step-thru StreetSmart. While customer references-- and not media strategy-- are expected to supportthe CD brand sales, Hero Moto Corp will look at social areas -- like civic issues, association with Non Government Organizations, contribution to greener causes-- for corporate communications.The corporate campaign will be largely complemented by on-ground initiatives under the umbrella brand of ``We Care'', incorporating activities in the arena of communityservices, safety and services programmes, tree-plantations and environmental-friendly projects.In line with Hero's worldwide, safety riding programme, this fiscal Hero Moto CorpMotors Limited will take the riding programme-- where trained personnel will giveriding tips to bike owners
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SPORTS & ENTERTAINMENT In sports promotions, Hero Moto Corp will s t i c k t o c r i c k e t ( f o l l o w i n g t i t l e sponsorship of the World Cup last year, it has signed a three-year contract for Hero-Hero-Salve Challenger Trophy) and golf (it will continue with Hero-Hero Masters Golf).Moreover, after a successful association with movies-- last year it signed Pyar Mein Kabhi Kabhi starring Dino M and Twinkle-- Hero Moto Corp is in theprocess of identifying title sponsorships of youthcentric movies. Says Sobti, In terms of media exposure, we are looking at sports, movies and news. Niche channels are also worth putting your money on.'' For the CBZ, this year it is planning to run commercials in youth channels like MTV; Discovery and Star Movies .In sports promotions, Hero Moto Corp will stick to cricket, it has signed a three-year contract for Hero-HeroSalve Challenger Trophy) and golf (it will continue with Hero-Hero Masters Golf). Moreover, after a successful association with movies last year it signed Pyar Mein Kabhi Kabhi starring Dino M and Twinkle-- Hero Moto Corp is in the process of identifying title sponsorships of youth-centric movies. In terms of media exposure, the company is looking at sports, movies, and news. For the CBZ Motorcycle, this year it is planning to run commercials in youth channels like MTV; Discovery and Star Movies. In sports promotions, Hero Moto Corp will stick to cricket, it has signed a three-year contract for HeroHero-Salve Challenger Trophy) and golf (it will
59

continue with Hero-Hero Masters Golf). Moreover, after a successful association with movies last year it signed Pyar Mein Kabhi Kabhi starring Dino M and Twinkle-- Hero Moto Corp is in the process of identifying title sponsorships of youth-centric movies. In terms of media exposure, the company is looking at sports, movies, and news. For the CBZ Motorcycle, this year it is planning to run commercials in youth channels like MTV; Discovery and Star Movies. The Target: Services will be a major differentiator,'' says Sobti.``The campaignswill highlight the high level of services and automated facilities at our dealerships. ''Hero Moto Corp is expecting a 30-35 per cent growth in spare parts revenue, which accounted for Rs 100 crore in 19992000.In the new fiscal, Hero Moto Corp is aiming to take the sales of Splendor from40,000 a month to 50,000 a month; CBZ from 4,500a month to 5,000; and a10-15 per cent growth i n CD and CD-SS brands up from 25,000 a month now. There-launched step-thru Street Smart is expected to account for around 25,000-30,000 in the first year. Services will be and is the differentiator. The campaigns will highlight the high level of services and automated facilities at the companys dealerships. Hero Moto Corp is expecting a 30-35 per cent growth in spare parts revenue, which accounted for Rs 100crore in 1999-2000.In the new fiscal, Hero Moto Corp is aiming to take the sales of Splendor from40, 000
60

a month to 50,000 a month; CBZ from 4,500 a month to 5,000; and 10-15 per cent growth in CD 100 and CD100SS brands up from 25,000 a month now. Supporting all of the Hero Moto Corp's growth projections are amuletpronged strategy including a thrust on a customer relationship programme, major increase in advertising and promotion (A&P) spending, expansion of dealership network, and a focus on organized consumer financing. DEALERSHIP EXPANSION Hero Moto Corp will add 25 more dealers and 50service stations to build a network of 575 dealershipcum-service points(including 400 dealerships) across the country.The level of investment in an automated Hero Moto Corp service station isexpectedto be around Rs 10 lakh, apart from land and building. No dealerhas any problem inexpanding business,'' says Sobti. We've tied up withCitibank and Centurion to provide bill discounting through our dealers.''Consumer Finance: In order to focus onorganised consumer financing, HeroHero tied up with Tata Finance a week ago. Thisis Hero Moto Corp's secondtieup following Centurion, which is accounting for aro und 3,000 bikes a month through 100 dealerships.We've got a good internal rate (based on IRM), which is standard acrossthe country,''says Sobti. ``These finance companies bring refreshinglycustomer-friendly focus toour organisation.''With Tata Finance, Hero-Hero's reach
61

will be extended to over 150 dealerships. Also, Tata Finance is expected to add 2,000 bikes a month. Presently, consumefinancing, including nonorganised financing, contributes around 20,000 Hero MotoC o r p b i k e s a m o n t h . G a u g i n g C o n s u m e r : H e r o M o t o C o r p i s c h a l k i n g o u t a customer relationship programme, which is expected to be established in the nextthree years. We're discussing with Result McCann,'' says Sobti.The programme will initially attempt at building relationships with Hero Moto Corp'stop three to five lakh owners, out of its customer base of three million.

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DATA ANALYSIS For finding the result of Marketing Strategy in purchase of motor bike we have togo through the customers perception and attitude. As for example age group,house holds annual income and purchase. These things focus the Marketing Mix.Then we have to go in details of all factors of coaster of Marketing Strategy asf a m i l y , g e n d e r , g e o g r a p h i c l o c a t i o n , s o c i a l , c u l t u r a l , i n c o m e a g e , s e x e t c . consumer behaviour are quite different their prepurchase, purchase decision and post purchase behaviour. For different product consumer behaves in different way.For buying the motel motor bike consumer prefer look robustness, Mileage andcomfortable. Brand image of the products is very important. Finding through theconsumer survey through questionnaire as follows.

63

 Approximately 60% user are between the age group of 18 to 25, then 25-35.thus mostly the young prefer to riding the bike generation. Most of the customer are in the annual income group 60,000 to 1 lakh. Itmeans high income group mostly preferred four wheeler. Most of the customer between the age group of 25 to 35 use bike office going purpose and 18 to 25 for college going or maintain their fined circle Brand of the product most affect the behaviour of the consumer. Customer known about the brand mostly through T.V. and word of month. Price a not effect the consumer it the quality, availability and after salesservices are good. In case of decision making friends, parents players an important role Consumer buying decision affected by physical feature and technological feature of the bike

64

MOTOR BIKE USERS AGE GROUP AGE 14 -18 18-25 25-35 ABOVE 35 % 20 60 15 5
65

MOTOR BIKE USERS AGE GROUP

14 -18 18-25 25-35 ABOVE 35

PURPOSE OF PURCHASE OF BIKE?

OFFICE GOING

39
66

COLLEGE GOING MAINTAINS FRIENDS OTHER PURPOSE

25 14 22

OFFICE GOING COLLEGE GOING MAINTAINS FRIENDS OTHER PURPOSE

MARKET SHARE OF BIKE?

67

HERO MOTO CORP BAJAJ SUZUKI YAMAHA OTHERS

40 32 12 11 5

HERO MOTO CORP BAJAJ SUZUKI YAMAHA OTHERS

BRAND AWARENESS MEDIUM?

68

TV NEWSPAPER WORD OF MOUTH DEALER EFFORT OTHER

38 25 23 9 5

TV NEWSPAPER WORD OF MOUTH DEALER EFFORT OTHER

69

PURCHASE INFLUENCER

QUALITY & FEATURE OF PRODUCT PRICE EASE OF ABILITY BRAND IMAGE OF THE PRODUCT AFTER SALES SERVICES VALUE OF MONEY

15 10 15 24 32 4

QUALITY AND FEATURES PRICE EASE OF ABILITY BRAND IMAGE AFTER SALES SERVICES VALUE OF MONEY

70

PHYSICAL FEATURES THAT EFFECTS MOST? LOOKS BODY BUILDING STYLE ROBUSTNESS 35 25 22 18

LOOKS BODY BUILDING STYLE ROBUSTNESS

71

BETTER AFTER SALES SERVICES

BAJAJ PASSION TVS VICTOR AMBITION OTHER

18% 24% 28% 25% 9%

72

BETTER AFTER SALES SERVICES

BAJAJ PASSION TVS VICTOR AMBITION OTHER

RECOMMENDATION There are no two opinions that the automobile industry is faring very well in theIndian market since the early 90s.However it can perform better in the market of it OThe first recommendation is obviously about the customer care. Presently thecompany has a customer relation department but it has to be
73

made stronger and more service provider to help the customers. The distribution network should be made stronger so that the customers dont feel dissatisfied for services, sales, and stocks. This is a age of customer delight and the company should not forget that customer is the king Everywhere there is a game of production and volumes, the company that produces more can save more and prices could be made more competitively The company should always go for quality The R & D base should be made stronger as the level of indigestion shouldcome down.

After doing market research I would like to suggest or recommend to the Companythat there are certain out comes of research, which followed through the formal andinformal procedure during the research. Thus we are bound to draw the attention of Company to certain points which are ought to be perceived by the Company with fullcare. 1. Publicity and advertisement should be broad, because competition is more. 2.2. Size and weight of bike should be match with their C.C. 3. c o m p a n y s h o u l d f o l l o w w o r l d wide strategies for i n c r e a s i n g t h e i r g l o b a l revenue. 4. Bike should have stepping facility. Which may help during critical situation.
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5.Company should provide promotional schemes to the customers. 6.All the protective parts of wheels should made of plastic and leg guard also bestrong. 7. Now Company is required to recover the faith of customers towards the brandimage. 8.Company should improve the mileage of the Bikes. 9. P r i c e s o f t h e B i k e m u s t b e s e t a s i t c a n b e a p p r o v e d b y m a j o r p a r t o f t h e population. 10. Fuel tank portion can be changed

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APPENDICES QUESTIONNAIRE Motor bike is not a luxury it has become the necessity in 21St century .I would like t a k e f e w minutes of your precious time, Just to know a b o u t y o u r v i e w s f o r different bike. I assure you that your information will be confidential and it would not be share by other organization. Name : Age: Occupation:

Sex:

1.Whi ch of the following best describe your age group? a) b) c) d) 14-18 18-25 25-35 Above 35

2. What is the size of your family (I ncluding children)?

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a) b) c) d)

Single 2 to 3 3 -4 Above 4

3. Which of the following best identifies you house hold annual income? a) b) c) d) Below 600000 60000 to 1 lakh 1 to 2 lakh Above 2 lakh

4. For which purpose you purchase the motorbike? a) b) c) d) College going Office going Maintain friend circle Other purpose

5. Whi ch of following compan ys motorbike do you have ? a) b) c) d) Bajaj Hero moto corp Suzuki Yamaha
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e)

Any other

6.How come you know about that brand? (can make more than one)? a) b) c) d) e) f) Tv Newspaper Dealer effort Word of mouth Internet Any other

7.Rate the followi ng in order of influence you purchase a bike? a) Brand image of the product b) Price c) After sales service d) Quality and feature of product e) Ease of availability f) Value for money 8.Whi ch option you prefer when you purchase a bike ? a) b) c) d) One time payment Financial option Exchange offer Any other
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9. Who was the decision maker in your purchase of motor bikes? a) b) c) d) e) Parents Friends Yourself Spouse Other

10. Which physical features contributed most in your buying decision? a) b) c) d) Looks Body building Style Robustness

11. What technological feature effected in your buying decision? a) b) c) d) 12. a) b) c) Power Mileage Four stroke engine Any other Which brand has better after sales services? Bajaj calibre Passion TVS victor
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d) Ambition e) l.m.l freedom f) other 13. a) b) c) d) 14. Are you satisfied with your decision? Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Which bike do your prefer for buying future?

a) Calibre b) TVS victor c) Pulser d) Passion e) Ambition f) LML freedom g) Other

BIBLIOGRAPHY

1. Phillip Litler Marketing manageme nt (PrenticeHall of India Pvt.). 2. Harper W. Bayd, Ralph West Fall, and Stanley F. Stasch Marketing research (AITBS Publisher 7th ed. 2001 ).
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3. A.G. Sawyer and Davied J Howard, Journal of Marketing research 1999. 4. c o n s u m e r B e h a v i o u r b y L e o n G . S c h i f f m a n a n d L e s l i e L a z a r K a n u k ( F i f t h edition) 5.Research Methodology by C.R. Kothari (Second Edition) 6.Business world and Business India magazine. 7. Auto India Magazine for two and four wheeler. INTERNET http://encyclopedia.thefreedictionary.com/Hero+ Hero http://www.heroHero.com/co_policy.htm http://www.hero Hero.com/co_board_directors.htm http://www.cmsnl.com/news/ Hero-to-strengthenstructure-of-its-rdoperations_news245.html http://www.etalkindia.com/indian_automobiles_news_f orums/new_variant_of_hero_ Hero_bikes_launchedgla mour_fi_and_cd_delux-t3336.0.html http://www.cmsnl.com/search.php www@heromotorcycle.com website of Hero Moto Corp bike. www@tvsuzuki.com website of Suzuki motor bike. nvswaminathan@bajajauto,com.

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