Hero honda

HERO HONDA

A Project Report on Hero Honda

Submitted By:- Chandan Kumar

(IMG- 09-11/ 005)

ACKNOWLEDGEMENT

Chandan Kumar ~ 1 ~

HERO HONDA

A project cannot be said to be the work of an individual. A project is a combination of views

and ides, suggestions and contributions of many people. I am extremely thankful to my

project guide who gave me an opportunity to do this project report as a part of the curriculum.

I wish to express my sincere gratitude to Hero Honda Company Staff & dealers whose

valuable information throughout my project work. Also I wish to thank all the faculty

members gave me some of their valuable time to fill up the project report, without which the

project study wouldn’t have been a success.

OBJECTIVES

Chandan Kumar ~ 2 ~

HERO HONDA To study the marketing mix of Hero Honda Company

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

To study various promotional strategies and know about the current strategies keeping in

mind the cut throat competition and arrival of Honda Company in India.

To focus on comparative study of different products of Hero Honda company Different range

of Products; their success and failure.

To study overall financial performance of Hero Honda Company.

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

Contents

Chandan Kumar ~ 3 ~

HERO HONDA

Executive Summary

Introduction

The Board of Directors of the Hero Honda Group Comprises

Hero Honda Mission

Vision, Objectives

Achievements Awards and Accolades

Auto Industry- A Review

Classification of the Industry

Segmentation, Targeting & Positioning

Marketing Communications

4ps of Marketing

Corporate Social Responsibility (CSR)

SWOT Analysis

Comparative Marketing Strategies

Hero to Take a Call on Honda ties Before 2014

Core Competencies

Conclusion

Bibliography

EXECUTIVE SUMMARY

Chandan Kumar ~ 4 ~

HERO HONDA During the 80s, Hero Honda became the first company in India to prove that it was possible

to drive a vehicle without polluting the roads. The company introduced new generation

motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it

- Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero

Honda sold millions of bikes purely on the commitment of increased mileage. In today world

customer is the king irrespective of whatever the business may be ,wherever the operations

may be .A good business organization is known by its strong customer loyalty, which turns to

become a unified family.

The project assigned to me by the company was a market study on 100cc bikes among the

dealers and customers with special reference to hero Honda dealer and loyalty of customers

towards the bike. The objective of the study was to find out the dealers and customers

opinion about the 100cc bikes with special reference to hero Honda dealer to understand how

market fluctuations affect their strategic decision. The research methodology was descriptive

in nature encompassing a sample of 200customers for in-depth analysis It was observed that

80%of the respondents are interested to purchase Hero Honda motor vehicle .are in the age

group of 18-35. A large part of respondents with majority of 60% are satisfied with the

availability of spare part and remaining 40% says no. It was observed that the 92%

resplendence are either highly satisfied are just satisfied and remaining 8% are dissatisfied.

Different models Hero Honda vehicles can be introduced for ladies, with better comfort,

speed and power, so that it can cater to the changing tastes of women.

More service station should be established in every part of the city, so those customers have

an easy accessibility. With a strong sales and service network of 650 Authorized dealership,

1500 authorized service centers and over 1000 certified service points, Hero Honda is

growing from strength to strength. Hero Honda motor should also start producing other

models and should add a different style and variety to their product line. This will surely

attract more customers. This will help to increase the existing goodwill and position in the

market. The experience gained during the analysis and drawing inferences was an exiting and

informative exercise under the guidance of unit head.

INTRODUCTION

Chandan Kumar ~ 5 ~

HERO HONDA

HISTORYABOUT THE CHAIRMAN

Brijmohan Lall Munjal – Seeding a Dream

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

The founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation

entrepreneur. He is a man who started small, dreamt big and used a combination of grit and

perseverance to create one of the country's largest corporate groups and the World's No.1

Two Wheeler Company. Instinctive from a young age, Brijmohan Lall made a rather unusual

start in life. Around the time when the freedom movement in India was taking shape in the

late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in

Kamalia (now in Pakistan). He was only six years old then. Thus began an extraordinary tale

of courage and perseverance. Brijmohan began his business story after partition in 1947,

when he and his brothers relocated to Ludhiana. The family set up a company that provided

poor people with basic transport (cycles). Three decades later, as India evolved, he added a

second crucial chapter which visualized affordable and technologically superior transport to

millions of middle class Indians. The rest is history.

Building Relationships When Brijmohan and his brothers started out, there was no concept of

organized dealer networks. Companies just produced, and most dealers functioned like

traders. Brijmohan changed the rules of the business by trusting his gut instincts; introducing

business norms that were ahead of their time, and by investing in strategic relationships.

Brijmohan built a series of bonds and networks with hundreds of family members, vendors,

dealers and employees. Much like the Japanese keiretsu system, these networks are now the

glue that holds the Hero Group together. "Thanks to the relationships that we have nurtured

so passionately in the Hero Family, the younger generations of some of our bicycle dealers

have become dealers of Hero Honda. These relationships have survived through generations -

through bad times and good times'' the patriarch now reminiscences. Besides bonding with

his vendors and dealers, Brijmohan has been personally responsible for kindling a spirit of

entrepreneurship amongst his employees, and today, 40 of his former employees are

successful entrepreneurs.

Staying Ahead Though not technically qualified in the conventional sense, few of his

contemporaries have understood the dynamics of technology better than Brijmohan Lall has.

He could always visualize the applicability of technology before others could. For example,

Chandan Kumar ~ 6 ~

HERO HONDA in the 1980s, when all two-wheeler companies in India opted for two-stroke engine

technology, Brijmohan preferred a four-stoke engine - a technology that dramatically

increased fuel efficiency and reduced maintenance costs. This technology was one of the

biggest reasons for Hero Honda's stupendous success. Time and again, Brijmohan managed

to steal a march over his industry peers. For example, when Honda Motors of Japan was

looking for a collaborator in the 1980s, the Hero Group was not high up the pecking order

initially as there were other more eligible and established suitors. Yet it didn't take long for

the astute Japanese to realize that the Hero Group and Honda had much more in common

than earlier perceived; there a sharp focus on financial and raw material management, and

employee turnover was low. Honda officials were also amazed to find that the Munjals were

already practicing "Just-in-time-inventory" at the time (JIT). It turned out that Brijmohan

Lall's aspiration to provide cheap transportation to India's poor by default ensured lean and

costeffective operations. This in turn increased vendor efficiency and led to near-zero

inventories.

A Corporate Citizen A frugal upbringing and a value system modeled on the famous Gurukul

system - which stresses the sanctity of the teacher-pupil relationship - imbibed in Brijmohan a

strong sense of social commitment and responsibility. There is a special place in his heart for

Ludhiana, the city where he took roots. Today, Ludhiana is a modern, bustling city, but

Brijmohan has played no mean role in its evolution. Several schools and educational

institutions in Ludhiana owe their existence to the Munjal family. The Ludhiana Stock

Exchange owes its existence to Brijmohan's vision as does the Ludhiana Flying Club. He's

also set up the not-forprofit Dayanand Medical College and Hospital-an institute now rated as

one of the best medical colleges in India, in terms of infrastructure, quality of staff and

alumni profile. In and around Dharuhera, near the first Hero Honda plant, Brijmohan and his

family have left their stamp of philanthropy. The Raman Kant Munjal Foundation - which

Brijmohan set up in memory of his eldest son, today runs a higher secondary school and a

very modern and well-equipped 100-bed hospital at Dharuhera. The group has also adopted

numerous villages and provides education, vocational training, drinking water, roads,

streetlights and sewerage.

The Board of Directors of The Hero Honda Group Comprises of : -

Chandan Kumar ~ 7 ~

HERO HONDA

Mr. Brijmohan Lall Munjal Chairman

Mr. Pawan Munjal Managing Director

Mr. Akio Kazausa Joint Managing Director

Mr. Kazumi Yanagida Director

Mr. Satyanand Munjal Director

Mr. Om Prakash Munjal Director

Mr. M P Wadhawan Director

Mr. S P Virmani Director

Mr. O P Gupta Director

Mr. M. Sudo Director

Mr. S Toshida Director

Mr. N N Vohara Director

Mr. Pradeep Dinodia Director

Gen. ( Retd.) V P Malik Director

Hero Honda Mission

Chandan Kumar ~ 8 ~

HERO HONDA

Hero Honda’s mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the quality, performance and price

aspirations of its customers. At the same time maintain the highest standards of ethics and

social responsibilities. This mission is what drives Hero Honda to new heights in excellence

and helps the organization forge a unique and mutually beneficial relationship with all its

stakeholders.

VISION

Hero Honda now the leader in the two wheeler industry. Leaders are not born, they evolve

over time. It all started on the auspicious. “Baisakhi Day” the 13th of April 1984, when the

Hero Honda Motor Company joined hands. On its journey to take on the No. 1 morale, Hero

Honda created some prominent milestones….. This leadership has been achieved only

because of its philosophy to excel in all areas. In fact, passion to excel is a credo of the entire

Hero Honda family and is a way of life in Hero Honda. The changing Scenario of increasing

competition and the entry of new brands has made the credo even more relevant. It serves as

a constant reminder to ensure excellence in providing service to the customer. They are

providing outstanding customer service. It is in keeping with Hero Honda’s own passionate

commitment to provide ultimate customer satisfaction. Today, they consistently meet and

exceed all requirement on quality, cost and delivery.

OBJECTIVES

Hero Honda’s mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the quality, performance and price

aspirations of its customers. At the same time maintain the highest standards of ethics and

social responsibilities. This mission is what drives Hero Honda to new heights in excellence

and helps the organization forge a unique and mutually beneficial relationship with all its

stake holders.

ACHIEVEMENTS AWARDS AND ACCOLADES

Chandan Kumar ~ 9 ~

HERO HONDA

Year Awards & Recognitions 2009

ET Awards for Corporate Excellence - Hero Honda is the winner of the “Company of the

Year" award for 2008 - 09. NDTV Profit Business Leadership Award 2008 - Hero Honda

Wins the Coveted "NDTV Profit Business Leadership Award 2008" Top Gear Design

Awards 2008 - Hunk Bike of the Year Award NDTV Profit Car India & Bike India Awards -

NDTV “Viewers’ Choice Award” to Hunk in Bike category India Times Mindscape and

Savile Row ( A Forbes Group Venture ) Loyalty Awards - “Customer and Brand Loyalty

Award” in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail

Excellence (Strategies and Solutions of business innovation and transformation) - Best

Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India

Awards - Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

• • •

2008

No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No.

premium motorcycle CBZ Xtreme

2007

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

• • •

Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc

category) "Bike Technology of the Year" - Glamour PGM FI

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

CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine “Most Trusted

Company” , by TNS Voice of the Customer Awards 2006. CD Deluxe rated as "No 1

standard motorcycle" by TNS Voice of the Customer Awards 2006. 2006 Adjudged 7th Top

Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). One of the

Chandan Kumar ~ 10 ~

HERO HONDA 8 Indian companies to enter the Forbes top 200 list of world’s most reputed companies. No. 1

in automobile industry by TNS Corporate Social Responsibility Award.

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

• • •

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

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey

2006. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two

Wheeler Company). Top Indian company in the Automobile - Two Wheeler sector by Dun &

Bradstreet - American Express Corporate Awards 2006. Hero Honda Splendor rated as

India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006. Certificate

of Export Excellence for outstanding export performance during 2003-04 for two-wheeler &

three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council.The NDTV

Profit Car India & Bike India Awards 2006 in the following category:

• • • • •

Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150

cc category) Bike of the Year - Glamour (up to 125 cc category) NDTV Viewers' Choice

Award to Glamour in the bike category

2005

Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the

'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI

National Award for Excellence (Second) in Cost Management 2004 in the private sector

category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent

wealth creator for the period 1991-2005.

2004

Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10

Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance.

Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook

Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management.

Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR


HERO HONDA Excellence. ICSI National Award for Excellence in Corporate Governance 2004 by The

Institute of Company Secretaries of India.

2003

Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top 10

Indian companies). Most Respected Company in Automobile Sector by Business World. Bike

Maker of the Year by Overdrive Magazine.

2002

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading

Companies Award (4th Rank amongst the top 10 Indian companies). Company of the Year of

ET Awards for Corporate Excellence. Ranked 4th in 'Overall Best Managed Company'

category, ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency'

category, ranked 6th in 'Overall Best Investor Relations' category, by Asiamoney. Highest

Wealth Creating Company of the Year Award by the Money. GVC Level 1 (Highest Rating)

by CRISIL for Corporate Governance.

2001

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading

Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three

Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector

by Centre for Science & Environment.

1999 National Productivity Award for the Best Productivity Award in the category of

Automobile & Tractor presented by Vice President of India. 1995 The Analyst Award 1995

presented to Hero Honda Motors Ltd. on being ranked 9th amongst the most investor

rewarding companies in India. 1995 National Award for outstanding contribution to the

Development of Indian Small Scale Industry (NSIC Award - Presented by President of India).

1991 Economic Times-Harvard Business School Award for Corporate Performance to Hero

Honda Motors Ltd.


HERO HONDA AUTO INDUSTRY- A REVIEW

INTRODUCTION

The Rs. 5500 crore Indian two wheeler segment is the second largest market fin the world

after China. India’s two wheeler production is the third largest in the world after Japan and

China. India has a welldeveloped two wheeler market with around 25 million households

owning two-wheeler. The Indian two wheeler industry made a modest beginning in the early

1950 when Automobile Product of India ( API ) started manufacturing scooter in India. Until

1958. API and Enfield( motorcycle) were the only two in production. In 1948, Bajaj auto

began trading in imported Vespa scooter and the three – wheeler- finally, in 1960’s. it set up

shop to manufacturer them in technical collaboration with piggaio of Italy. The agreement

expired in 1971. In the initial stages, the scooters segment was regulated regime, foreign

company was not allowed to operate in India, and waiting time for getting Bajaj scooters was

as high as 12 years. Java, and escort. While the Enfield bullet was a four strokes bike, the

Java and Rajdoot were two-strokes bikes. The motorcycles industry was originally dominated

by Enfield with 350 cc bikes. The motorcycles industry was cc segment. The two wheelers

segment was opened up to foreign competition in the mid 1980’s which saw the entry of the

Japanese manufactures into the country.

COMPANY PROFILE

The Hero Honda story began with a simple vision – the vision of a mobile and an empowered

India, powered by Hero Honda. This vision was driven by Hero Honda's commitment to

customer, quality and excellence, and while doing so, maintain the highest standards of ethics

and societal responsibilities. Twenty five years and 25 million two wheelers later, Hero

Honda is closer to fulfilling this dream. This vision is the driving force behind everything that

we do at Hero Honda. We understood that the fastest way to turn that dream into a reality is

by remaining focused on that vision. There were many unknowns but we kept faith, and

today, Hero Honda has been the largest two wheeler company in the world for eight

consecutive years. Our growth has kept compounding. The company crossed the ten million

unit milestone over a 19-year span. In the new millennium, Hero Honda has scaled this to 15

million units in just five years! In fact, during the year in review, Hero Honda sold more two

wheelers than the second, third and fourth placed two wheeler company put together. With

Hero Honda, the domestic two wheeler market was able to show positive growth during the

year in review. Without Hero Honda, the domestic market would have actually shrunk. Over


HERO HONDA the course of two and a half decades, and three successive joint venture agreements later,

both partners have fine-tuned and perfected their roles as joint venture partners. What the two

partners did was something quite basic. They simply stuck to their respective strengths. As

one of the world's technology leaders in the automotive sector, Honda has been able to

consistently provide technical knowhow, design specifications and R&D innovations. This

has led to the development of world class, value - for- money motorcycles and scooters for

the Indian market. On its part, the Hero Group has taken on the singular and onerous

responsibility of creating world-class manufacturing facilities with robust processes, building

the supply chain, setting up an extensive distribution networks and providing insights into the

mind of the Indian customer. Since both partners continue to focus on their respective

strengths, they have been able to complement each other. In the process, Hero Honda is

recognized today as one of the most successful joint ventures in the world. It is therefore no

surprise that there are more Hero Honda bikes on this country's roads than the total

population of some European countries put together! The company's meteoric growth in the

two-wheeler market in India stems from an intrinsic ability to reach out and come closer to its

customers, with every passing year. Hero Honda's bikes are sold and serviced through a

network of over 3500 customer touch points, comprising a mix of dealers, service centres and

stockists located across rural and urban India. Hero Honda has built two world-class

manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most

sophisticated plant at Haridwar has just completed a full year of operations. It is difficult to

imagine that all this has happened in the span of just two and a half decades! The best is yet

to come. During the year in review, Hero Honda powered its way in a market that, for all

practical purposes, was feeling the full effects of the economic slowdown in India. With an

economic recovery now clearly on the cards, Hero Honda is all set to ride into another

summit. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly puts it,

"We pioneered India's two wheeler industry, we've steered it through difficult times; now it is

our responsibility to set the pace again.''

New Models The company has a large portfolio of brands, with the moneyspinners being

mainly Splendor Plus (the world's largest selling bike) and Passion. However, the company

claims it was the launch of the 150cc CBZ and 225cc KARIZMA which established Hero

Honda as an inspirational brand. "The launch of CBZ and KARIZMA got us into a different

league altogether. Although the sales are just about 3,000 a month, it made us an overall bike

company”, Hero Honda would launch a new model of the KARIZMA by the end of current

year, the Managing Director, Mr. Brijmohanlal Munjal, said. Meanwhile, the company is yet


HERO HONDA to decide on the location of its proposed Fourth manufacturing unit. “The feasibility study is

on'', he said, adding that the new plant was likely to come up in the next 18 months. New

launches are likely to help Hero Honda gain a market share in the coming quarters. Hero

Honda Motors Ltd, has launched a new 100-cc four-stroke bike, CD deluxe and Dawn is

likely to be phased out of the market once the new model sells ``10,000 plus'' units per

month. Sales Performance Hero Honda went against the grain and created a growth trajectory

all of its own. Sales of the company grew by over 11 per cent in volume terms and in value

terms; they grew by over 19 per cent. Effectively, this helped the company end the year with

a market share of around 60 per cent. This robust performance helped the company increase

earnings margin 120 basis points—a remarkable feat, considering that elsewhere in the world,

the automobile industry went through its worst year in recent history.

Hero Honda’s performance in its silver jubilee year helped it retain its position as the world’s

largest two wheeler company for the eighth year in a row. It also helped the company cross

the 25 million unit mark—becoming the first company in India to reach this milestone. Last

year, two new models were launched, namely CBZ XTREME and HUNK to address super-

style and economy segments. Passion pro has found its position firm amongst Indian models,

only next to Splendor, the largest selling bike in the world in terms of sales performance.

CBZ was re-launched as CBZ XTREME, in April 2007, with changes and value additions to

cater to specific needs of the customers. Reportedly CBZ XTREME is doing well in its

segments and has sold over 10,000 units in the initial months itself. Hero Honda has targeted

a sale of over 3 million bikes for the year 2009-10. This effort is supplemented by a major

launch this year, in October end; this bike will have some exclusive features and will be in

the 200cc plus range. There are some ambitious programmes of launching a new range of

bikes with technical support from Honda in the coming years. With a slew of such measures

the capacity available at present locations can at best support two-million production target at

the existing plants. The company, therefore, is looking at the possibility of setting up a third

plant to meet the future demand and for which techno-economic study is in progress.

New Initiatives Customer and customer satisfaction is the purpose of our being an entity. To

increasingly understand him and make him part of our ongoing business. Customer related

initiative has been the increase of warranty period to three years since July 2008. This has

attracted a great deal of customer attention. During the year the company has added nearly a

hundred dealerships and SSPs. In terms of sheer numbers, the network has grown by 16%

during the year 2008-09. We would endeavor to increase our reach to every corner of this

country. Plans for the future In the previous year, the domestic two-wheeler industry entered


HERO HONDA a period of de-growth. However, this was arrested in 2008-09, largely on the back of Hero

Honda's performance. After the blip of last year, the two-wheeler industry went back to a

growth phase, largely driven by Hero Honda and exports. The industry clocked total volumes

of 8.5 million during the year in review, a growth of 5 per cent compared to a fall of 5 per

cent in the previous year. The pace of growth was lower in the domestic market, where the

industry clocked sales of 7.43 million, a rise of only 2.60 per cent. This, however, was a

significant improvement over previous year when the industry had shrunk by 8 per cent.

Motorcycles continue to constitute the largest chunk of the two wheeler industry, and during

the year in review, accounted for four fifth of sales. Interestingly, for the second year in

succession, scooters increased their share in the two-wheeler pie from 14 per cent to 16 per

cent. This is clearly a trend reversal from the last 10 years, where the share of scooters in the

two-wheeler pie had been shrinking. Changing lifestyles among women, and the introduction

of feature-rich, high-quality scooters possibly has much to do with the revival in demand

The entry segment – made up of basic 100 cc bikes -Had started slowing two years ago, and

during the year in review, sales in this segment were down by more than 15 per cent. This

could be attributed to the fact that deluxe segment bikes have become affordable on account

of a 4 per cent excise cut, 1 per cent reduction in CST and the special package of reduction in

excise duty in December, which most manufacturers passed on to the consumers. The deluxe

segment-made up of value for money and feature-rich bikes in the 100-125 cc category-grew

by 15.2 per cent. The 125-250 cc category-grew at 8.8 per cent. The pace of growth has fallen

from last year's levels. There is no doubt that the higher interest rates have brought down

growth. Nevertheless, this segment was still able to clock a growth rate in high single digits

mainly because of the excitement caused by a slew of new models that came into this

segment during the year. The bigger story, of course, is that buyers in small-town India and

rural India, as well as employees of the state and Central government, were relatively less

affected by the slowdown, and this benefitted the two wheeler industry.


HERO HONDA

The legend of Hero Honda

What started out as a Joint Venture between Hero Group, the world's largest bicycle

manufacturers and the Honda Motor Company of Japan, has today become the World's single

largest two wheeler Company. Coming into existence on January 19, 1984, Hero Honda

Motors Limited gave India nothing less than a revolution on two-wheels, made even more

famous by the 'Fill it - Shut it - Forget it ' campaign. Driven by the trust of over 5 million

customers, the Hero Honda product range today commands a market share of 48% making it

a veritable giant in the industry. Add to that technological excellence, an expansive dealer

network, and reliable after sales service, and you have one of the most customer- friendly

companies.

Customer satisfaction, a high quality product, the strength of Honda technology and the Hero

group's dynamism have helped HHML scale new frontiers and exceed limits. In the words of

Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We will continue to

make every effort required for the development of the motorcycle industry, through new

product development, technological innovation, and investment in equipment and facilities

and through and through efficient management."

History Of Company

1984

The Company was Incorporated on 19th January, at New Delhi. The Company Manufacture

motor cycles up to 100 cc capacity. The Company was promoted by Hero Cycles (P) Ltd.

(HCPL).

The Company entered into a technical-cum-financial collaboration agreement with Honda

Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish

complete technical information and know-how and trade secrets and other relevant data.

Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc

range. Its most attractive features are fuel efficiency and its light weight. CD-100 will be

equipped with electronic ignition system, illuminated speedometer, 4 speed gear box, neutral

and flasher indicators, etc. 15 No. of equity shares subscribed for by the promoters, etc. In

November, 119,99,985 No. of equity shares issued at par of which 71,99,985 shares reserved

for allotment as under:

(i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur


HERO HONDA Chand Investments (P) Ltd.

(ii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and

(iii) 9,59,987 shares to friends and association of promoters. Out of the balance

48,00,000 shares, 2,40,000 shares were reserved for subscription by the

employees of the Company and 96,000 shares by business associates. The

remaining 44,64,000 shares were offered at par for public subscription during

November.

1985

The Company embarked on its 2nd phase of expansion of increasing its installed capacity

from 1,20,000 to 1,50,000 vehicles per annum by the addition of several critical aliminium

and steel components.

1986

36,00,000 rights equity shares issued at par in prop. 3:10.

1987

The Company offered 6,00,000 - 15% secured redeemable non-convertible debentures of Rs

100 each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares.

Another 3,00,000 - 15% debentures were allotted to retain oversubscription. Thedebentures

were to be redeemed at a premium of Rs 5 per debenture on the expiry of the 7th year from

the date of allotment of the debentures

3,75,000 rights equity shares issued at par in prop.3:10

1989.

The Company introduced a new model "Sleek" during July.850 No. of equity shares

forfeited.

1990

The Company was planning to launch a new model motor cycle-CD 100 SS sutiable to

semi-rural conditions. In the domestic market the Company was reported to have a market

share of 46%.- 850 forfeited shares reissued.

1994

The Company proposed to expand the capacity of existing plant at Dharuhera to 2,40,000

nos. per annum. Another plant with an installed capacity of 1,50,000 nos. per annum at

Gurgaon Industrial Estate was being set up.

The Company issued 39,79,500 bonus shares to the existing shareholders in the ratio of 1:4.

The Company also issued 28,557 number of fractional coupons representing 14,250 shares

against which shares shall be allotted to presenting the same for consolidation and allotment.

The Company's production and turnover increased to 1,83,490 motorcycles and Rs.483.85


HERO HONDA crores respectively due to growth in demand for two wheelers and declining inflation.

1995

14,420 bonus shares issued by way of consolidation of fractional coupons. - A new Technical

Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan for the period

up to the year 2004 which includes technology related to models of higher Engine

displacement. The Company allotted 39,79,500 No. of Equity Shares of Rs. 10/- each as

Bonus shares on 7th February, by way of capitalization of General Reserves.

The Company had issued 28557 No. of Fractional Coupons representing 14.250 shares

against which the Shares shall be alloted on presenting the same for consolidation and

allotment.

1997

Hero Honda Motors has launched its newest motorcycle, the Street, a 100 cc bike designed

for use in congested urban traffic conditions. Hero Honda Motors Ltd (HHML) has set up a

new motorcycle plant in Gurgaon, near Delhi for the manufacture of the Honda Super Cub

100 cc step thro bike. Hero Honda has set up a new state-of-the-art plant, heralding a new

phase of development of motorcycle industry in India, to provide the most modern and

technologically advanced production facilities.

Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has set up a

plant in Brazil for manufacturing hero winner scooters.

A new step thru model `Street-100' with unique feature was launched on 24th January.

1998

The company proposes to increase the share capital to 5 crore equity shares of Rs. 10 each, 4

lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakh cumulative

convertible preference shares of Rs. 100 each with power to increase or reduce it from time to

time. The company further proposes to capitalise Rs. 19,96,87,500 from general reserve to

share capital through issue and allotment of bonus shares. Altogether, 1,99,68,750 fully paid

bonus shares will be allotted and distributed to members of the company holding equity

shares of the company in the proportion of one bonus share for every fully paid equity shares

of Rs.10 each. Motorcycles major Hero Honda is considering entry into scooters in

collaboration with partners, Honda Motors, after the Japanese company decided to walk out

of Kinetic Honda, their scooter venture with the Firodias of Pune. Honda Motors recently

pulled out of its joint venture with the Firodias in which it held a 51 per cent equity stake.

Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML) have

signed a five-year licence and technical assistance agreement under which KHML will


HERO HONDA continue to receive the technical knowhow, critical vehicle parts and access to Honda's

markets even after the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL).

- The Company changed the paradigm in two-wheelers by launching the most powerful

and fast bike- CBZ with a unique feature of Transient Power Fuel Control (TPEC) system.

23,962,500 bonus shares issued in prop. 1:1.

1999

Hero Honda Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have signed a

Memorandum of Understanding (MoU) for financing of Hero Honda motorcycles.

The company, a joint venture between Honda Motor Company of Japan and Hero group of

India to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to 38.6

per cent during the current fiscal. Leading two-wheelers manufacturer Hero Motors has

formed a joint venture with Briggs Stratton of US to develop and manufacture four-stroke

engines for mopeds and scooters in India, a top company. Honda Motor Company of Japan

has decided to re-enter the scooter market in India as also foray into three-wheelers in a joint

initiative with its existing joint venture company Hero Honda Motors Ltd.

2000

Hero Honda Motors Ltd. and Tata Finance Ltd. have signed a national tie-up agreement. The

Company is the largest manufacturer of motorcycles in the country. The Company will

relaunch its stepthru Stree Smart on Baisakhi 13th April. Hero Honda Motors Ltd (HHML),

has launched an upgraded version of the existing step-through motorcycle - the Hero Honda

Street. The Company was ranked as the 9th Highest Value Creator among 12 industry groups

within the Bombay Stock Exchange top 100 companies over a five year period (1994-99).

2001

Hero Honda Motors Ltd. has launched a new 100cc motorcycle named `Passion'. The

Company has secured shareholders' approval for splitting one equity share of Rs 10 each into

five equity shares of Rs 2 each in the ratio of 1:5.

Hero Honda Motors Ltd. has become the largest seller of motorcycles amongst all Honda

companies and ventures in the world by selling one million motorcycles during the current

financial year. Credit rating Agency Crisil has reaffirmed outstanding `AAA' rating assigned

to the proposed Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper

programme and fixed deposit programme of Hero Honda Motors.

Promoter-Chairman of the country's largest motorcycle manufacturing company, Hero Honda

Ltd, Brijmohan Lall Munjal has bagged the prestigious Ernst & Young Entrepreneur of the

Year (EOY) award here on September 27.


HERO HONDA

CLASSIFICATION OF THE INDUSTRY

The two-wheeler segment can be categorized into the scooter, mopeds, and motorcycles.

Motorcycles: this segment has shown the best performance in the recent years. The market

leaders in this section are Bajaj Auto. TVS, Mahindra, Hero Honda. [The splendor is the most

popular segment among motorcycles.]

Two Wheeler Industry

It wasn’t an easy year for the two wheeler industry. Rising interest rates and the economic

slowdown resulted in delayed consumer decision making and a rise in loan defaults. Over the

course of the year, banks withdrew financing facilities from satellite towns. The share of

financing, which had increased rapidly to 50-60 per cent of the total retail sales by early

2007, has now come down to below 30 per This came as a major setback for the two-wheeler

industry. Ongoing government investments very clearly emphasis inclusive growth through

improved connectivity, job-creation and improving quality of life. The rural road outlay has

been upped by close to 60 per cent, the budget for the Urban Renewal Mission has been hiked

by 87 per cent, and fund allocation to the ongoing National Highways program has been

upped by 23 per cent. Importantly, India has added fresh impetus to its flagship job creation

program for rural India: the National Rural Employment Guarantee Scheme. During 2008-09,

this scheme, which provides 100 guaranteed days of work a day for the country’s rural poor,

provided employment opportunities to more than 44 million households last year; a year ago,

33 million households were covered. During the year, there have been important

developments in two wheeler industry. The competition has strengthened though there are

hardly any new entrants into the industry. There is an increasing emphasis on price and this

has led to cost cutting efforts all across cent. the industry, thereby, making the customer an

ultimate beneficiary. The trend also saw introduction of new motorcycles with capacity

ranging from 100 to 250cc bikes. We anticipate that many more new models will be launched

during the year and provide customers plenty of choice at competitive prices. Businesses

cannot consistently grow at 25-30 per cent. Each business has a tendency to taper and plateau

after attaining a particular size. An annual growth rate of 10-12 per cent over a period of time

is extremely healthy. The TCS study rankings are conducted at the motorcycle segment level

to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in

their respective segments for TCS are: Hero Honda splendor plus (best standard motorcycle

segment); Bajaj pulser (best executive motorcycle segment); Hero Honda karizma (best


HERO HONDA premium motorcycle segment); and Royal Enfield Bullet Electra (best cruiser motorcycle

segment). "The relatively low score for the executive segment indicates that most

manufacturers have fallen short of meeting the high expectations of these buyers,".

Production, sales growth of the industry

The two-wheeler companies have been operating at high capacities due to high growth rates

between 2009 and 2008. The growth is expected to lead to increase in the capacities from

present 52 lakh units to 65 lakhs per annum in the year 2009-10, whereas the actual

production estimates by that period at an estimated growth rate of 18% is only 60 lakhs.

Charts showing two-wheeler industry growth rates Demand

In India the two-wheeler provide an easy and popular mode of personal transport for the

middle classes. With public transportation system being inadequate and ineffective the

demand for the two wheeler is likely to rise. The two-wheeler sales are expected to touch the

5 million mark by the end of the decade as against the annual sales of 35,49,271 in 2008-09.

Technology With liberalization and the increasing competition. The two- wheeler industry

has witnessed technological changes. The four- stroke engine is being introduced in place of

the traditional populations and fuel inefficient two stroke engine. The smaller capacity engine

with the electronic fuel injection is also being used. Bajaj auto is now feeling the need to

increase its technological competence. Wit the competition cashing in on the technological

competence for their collaborators. Emphasizes being laid on lighter and fuel- efficient

vehicles. A class of vehicle having fuel efficiency of a moped and sleekness and style of the

motorcycles called scooter is growing. The vehicles offer a fuel efficiency of 60-65 km p/h.

They enter into new segment, Bajaj Auto has come out with TVS with Scooty pep and Hero

Honda has come out with a Pleasure and upgraded version of sleek. Government policy The

excise duty on two-wheeler , which has previous 10 percent to 30 percent according to the

engine capacity, was rationalized is only two categories size. 15 percent for 75 cc engine

capacity and 25 percent for above 75 cc engine capacity the excise duty structure has been

left untouched since the 1993-94 budget.

The Indian two-wheeler industry is experiencing a major shift in its shape and structure. The

established players in the industry are taking a hard look at their portfolio of products and are

in the process of reshuffling them to meet the expectations of customers. The beneficiary is of

course the consumer, who has an increased array of products to choose from. The last four-

five years have brought about a great change in the consumer preferences for two-wheelers.

The market leaders of yesteryears are being driven to maintain their leadership position in the


HERO HONDA forthcoming years. Those who have had a great going in the last few years are fighting hard

to retain their new supremacy. The two-wheeler industry is perhaps the most happening place

in terms of new models launched, upgraded products and innovative marketing techniques.

Gone are the days of regulation when the production of scooters and motorcycles was limited

to two or three brands and the number of products produced was decided by the Government;

today the Indian two-wheeler market is highly competitive with numerous players who offer

anything and everything a consumer demands and that too at affordable price. From a sellers

market where one had to wait for a scooter for 12 years to the days when you can just walk

into any showroom and drive out in the vehicle of your choice, the market of two-wheelers in

India has come a long way. But this is only the beginning of the transformation.

Marketing and The Distribution

Like any other emerging country, India experienced the knock-on effects of the global crisis

during the year in review. The effects were felt through the monetary, financial and real

channels. Drying up of global finance impacted from the middle of the fiscal impacted

domestic capital finance; and corporate earnings came off peaks. In April 2009, Reserve

Bank of India predicted that the Indian economy's growth for 2008-09 would slow to 6.6 per

cent, breaking an excellent five-year growth sequence. There were two dimensions to the

economic slowdown. In the first half, inflation ran into double digits as a result of the global

crude shock and the global food grain shortage. To control inflation, the RBI clamped down

on money supply, and reduced liquidity in the economy. By the time inflation started coming

under control, domestic interest rates started shooting up. Meanwhile, the global crisis

erupted, putting further pressure on liquidity levels. By October 2008, slowdown was clearly

apparent in export-intensive sectors, both in the manufacturing and service side. By

December, the slowdown turned into de-growth. The cutback in demand from Europe and the

US was so sharp that even a competitive rupee, which devalued by around 12 per cent during

the year, couldn't act as a buffer. By December 2008, the growth momentum of the first six

months was lost. Planned investment projects were shelved; live projects faced a shortage of

funds as credit flows dried up. As money became dearer, pay packets became slimmer and

risk aversion grew both from the demand and supply side. Compulsions of coalition politics

at the Centre and the impending Lok Sabha elections didn't help either, and slowed down

reforms and implementation of projects, particularly in critical sectors like roads, ports and

power. The worst hit was the manufacturing sector. From the second half of the financial

year, the index of industrial production contracted on three occasions, remained close to zero


HERO HONDA on two occasions, and was mildly positive only once. Two –Wheeler Financing Though two-

wheeler are the most preferred from of transport in India, the fact remains that it is a lower

end market product. Most two-wheeler manufacturer like Bajaj Auto and kinetic engineering

have set up their own finance company since organized financiers do not think the returns are

particularly attractive. The argument given by some financiers is that the price of a Yamaha

or Hero Honda is so high that people prefer to buy a second hand car instead. This is

particularly true of small town where people desire to own a car and they have the means the

two wheeler is then only a second vehicle for the family. MARKET MECHANICS: Since

1985, when the first Hero Honda it has been and instant hit. A mileage miser with just about

adequate performance further backed by image of Honda and Hero Cycles brand of

aggressive marketing, it climbed up the sales chart outselling every other motorcycle by ten

of thousands every year. Over the years, company has received its share of accolades,

including the National Association of India Award against 200 contenders.


HERO HONDA

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 is

overlooking one feature in bike which is its low maintenance cost and reliability (i.e. less

chances of breakdown) which is absent in its competitors. Therefore, in order to meet the

sales target, two option are available with the client, one is to redesign the bike and second is

to reposition the bike as “Bike with one time investment”. Since redesigning of bike may

involve a big task and huge investment therefore we recommended repositioning the bike.

Growth The business growth of Hero Honda has been phenomenal throughout its early days. The

Munjal family started a modest business of bicycle components. Hero Group expanded so big that by

2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda

has an assembly line of 9 different models of motorcycles available. It holds the record for

most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was

established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is

currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-

2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed

at girls. The Hero Group has done business differently right from the start and that is what has helped

them to achieve break-through in the competitive two-wheeler market. The Group's low key, but

focused, style of management has earned the company plaudits amidst investors, employees,

vendors and dealers, as also worldwide recognition. The growth of the Group through the

years has been influenced by a number of factors:


HERO HONDA Just-in-Time

The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-

time inventory. The Group boasts of superb operational efficiencies. Every assembly line

worker operates two machines simultaneously to save time and improve productivity. The fact that

most of the machines are either developed or fabricated in- house, has resulted in low

inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working

since the beginning of production in the unit and is functional even till date.. This is the Japanese style

of production and in India; Hero is probably the only company to have mastered the art of

the just-in-time inventory principle

Ancillarisation

An integral part of the Group strategy of doing business differently was providing support to

ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's

requirements and also a large number of other vendors, which include some of the better known

companies in the automotive segment. Employee Policy: Another Striking feature within the

Hero Group is the commitment and dedication of its workers. There is no organized labor union and

family members of employees find ready employment within Hero. The philosophy with regard to

labor management is "Hero is growing, grow with Hero." When it comes to workers' benefits, the

Hero Group is known for providing facilities, further ahead of the industry norms. Long before other

companies did so, Hero was giving its employees a uniform allowance, as well as House Rent

Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical

check-ups, not just for workers, but also for the immediate family members.

Dealer Network

The relationship of Hero Group with their dealers is unique in its closeness. The dealers are

considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000 outlets,

and have a formidable distribution system in place. Sales agents from Hero travels to all the corners of

the country, visiting dealers and send back daily postcards with information on the stock position that

day, turnover, fresh purchases, anticipated demand and also competitor action in the region.

The manufacturing units have a separate department to handle dealer complaints and problems

and the first response is always given in 24 hours.


HERO HONDA Financial Planning

The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology,

manufacturing and marketing. Group Company, Hero Cycles Limited has one of the highest labor

productivity rates in the world. In Hero Honda Motors Limited, the focus is on financial and raw

material management and a low employee turnover.

Quality

Quality at Hero is attained not just by modern plants and equipment and through latest technology, but

by enforcing a strict discipline. At the Group factories, attaining quality standards is an everyday

practice - a strictly pursued discipline. It comes from an amalgamation of the latest

technology with deep-rooted experience derived from nearly four decades of hard labor. It is an

attitude that masters the challenge of growth and change - change in consumers' perceptions about

products and new aspirations arising from a new generation of buyers.

Constant technology up gradation ensures that the Group stays in the global mainstream and

maintains its competitive edge. With each of its foreign collaborations, the Group goes onto

strengthen its quality measures as per the book. The Group also employs the services of independent

experts from around the world to assist in new design and production processes.

Diversification

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at

diversification. A considerable level of backward integration in its manufacturing activities

has been ample in the Group's growth and led to the establishment of the Hero Cycles

Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal

Showa Limited amongst other component-manufacturing units.

Then there were the expansion into the automotive segment with the setting up of Majestic Auto

Limited, where the first indigenously designed moped, Hero Majestic, went into commercial

production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with

global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in

1984 to manufacture 100 cc motorcycles. The Hero Group also took a venture into other segments

like exports, financial services, information technology, which includes customer response

services and software development. Further expansion is expected in the areas of

Insurance and Telecommunication

The Hero Group's phenomenal growth is the result of constant innovations, a close watch on costs and

the dynamic leadership of the Group Chairman, characterized by a culture of entrepreneurship, of

right attitudes and building stronger relationships with investors, partners, vendors and


HERO HONDA dealers and customer

MARKETING: AN INTRODUCTION

Marketing is a social and managerial process by which individuals and groups obtain what

they need and want through creating, offering and exchanging products and values with each

other. In this way marketing is a business function that identifies customer needs and wants,

determines which target market the organization can serve best, and designs appropriate

products, services, and programs to serve these markets. Marketing is much more than

isolated business function it is the philosophy that guides the entire organization. The goal of

marketing is to create customer satisfaction profitably by building-value laden relationship

with important customers as well as fulfill certain organizational objectives. People

throughout the various kinds of organizations-product or service, profit or non-profit,

domestic or global, small or large, need to know how to define and segment a market and

how to position themselves strongly by developing need satisfying products and services for

chosen target segment. They must know how to price their offerings to make them attractive

and affordable and how to choose and manage intermediaries to make their products

available to customers. And they need to know how to advertise and promote products so

customers will know and want them. The objectives can be achieved through the

implementation of suitable marketing strategy by the organization. It is the marketing logic

that is formulated keeping in mind the needs of the consumers and also strategies of the

competitors. The 4 factors affect it are:

Product - The tangible offer to the market, which includes the product quality, design,

features, branding and packaging. Price – The amount of money that customer pays for the

product. The price of the product should commensurate with its perceived value. If does not,

the buyers will turn to competitors products. Place – Includes the various activities the

company undertakes to make the product accessible and available to a large number of target

customers. Promotion – The fourth marketing mix tool, includes all the activities the

company undertakes to communicate and promote its products to the target market. It

consists of advertising, sales promotion, public relations, and direct and online marketing.

Faced with unrelenting global competition, and ever more powerful and demanding

customers, companies across the world have come to realize that their old ways of operating

– their long standing methods for developing, making, selling and servicing products – are no

longer adequate. They have also discovered that their existing tools for improving operations


HERO HONDA are not making a dent in persistent problems of high cost, poor quality and inadequate

service. In order to address these problems, these companies are taking measures more

radical than they have ever taken before. They have begun to re-engineer, they have ripped

apart their old ways of doing things and started with clean sheets of paper. Hero Honda has

effectively evolved remarkable marketing strategies for its 4P’s. It is because of this that

Hero Honda has been able to come out a niche for itself. But before we discuss the strategies

for the 4Ps separately, it is imperative that we know about the marketing strategy. This is

what keeps the Hero Honda going and have reinforced its leadership in the motor bike

segment.

MARKETING COMMUNICATIONS

“Walk the Talk” though Advertising, sales Promotion, Public Relations, through an emerging

Media, including the Web these things are done through :-

♦ Promotional Methods

♦ Promotional Mix

♦ Advertisement

♦ Sales promotion

♦ Public Relations

♦ Event Management

♦ Media Management

♦ Budgeting

♦ Measuring Effectiveness

And much more……………….. The internet’s greatest potential has been superbly exploited

by the small business ventures to reach customers directly. The market had virtually opened

quickly to market changes by providing accurate market intelligence, faster communication

and greater planning time. This helped to reduce the market volatility the dealer to understand

the significance and value of e-commerce and benefits of embracing the latest in information

technology, and initiate concrete steps to capitalize on it. The marketing is also done through

sales promotions, Advertisement, publicity, etc. Strong dealer relationship expands the scope


HERO HONDA of the commercial paper programme in an organization and Hero Honda is doing that. They

are doing the communication through newspaper, magazines and television channels, etc.

4PS OF MARKETING

PRODUCTS

Hero Honda Cd-dawn

Now is the time for you to drive in style the new Hero Honda Cd-dawn D.N.A in India. Any

Hero Honda Bike is a great product to covet and own. The Hero Honda Cd-dawn price in

India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as

an ideal city commute. The Cd-dawn Bike has a neat look along with a great rev-up and

acceleration. Take a few minutes to read the new Hero Honda Cd-dawn Review here!

Hero Honda CD Dawn is a beginner's bike well tested on Indian roads and proven in city

conditions. Hero Honda CD Dawn is a no-nonsense bike that's all about price and utility. Its

conservative looks appeal to people who dislike fancy bikes overwhelming their personal

presence. Backed by the reliability of the world's largest motorbike manufacturer, the Hero

Honda CD Dawn offers improvements upon earlier Hero Honda 100 cc versions. The Hero

Honda CD Dawn offers a higher ground clearance and other enhanced features without

compromising on price, mileage, or reliability. The bike commands a good resale value.

Looks

Tubular double cradle frame looks sleek and masculine

Great color options (Black, Red, Dark Maroon etc.)

Unique 3-D graphics and knee recesses look awesomely rugged

Stylish muffler protector creates a trendy image

Powerful and round headlight with multifocal reflectors

The strongly contoured fuel tank enhances masculine appeal

Body colored visor blends gracefully with other graphical elements

Multi-reflector taillight gives off warm glows

Control

4-stroke single cylinder 97.2cc engine with standard Hero Honda reliability

Transmission is 4-speed constant mesh

Max Power is 5.44 KW @ 8000 rpm


HERO HONDA Max Torque is 0.79kgm@5000 rpm

Muffler protector provides safety of the co-rider

Higher ground clearance at 165 mm makes it easier to ride on different terrain

The kick start is reliable and usually responds on the first kick

Ignition is CDI (capacitor discharge ignition)

Clutch is smooth -Multiplate, Wet type

Gear shifting is extremely user-friendly, and helpful for any novice

Internal expanding shoe type front and rear brakes builds reliability

Light weight and easy to handle, easy on slow learners

Comfort

Knee recesses on the fuel tank enhances posture comfort

User-friendly rear shock-absorbers give a pleasant ride

Broader seats distribute rider weight more evenly and increases comfort

Hydraulic fork type front suspension provides reliable shock absorption

Swing arm with 2 step adjustable hydraulic shock absorber at the rear increases comfort on

the pillion

Larger reflectors for the headlamps enhances safety

New padlock for theft security

Mileage and Economy

This low maintenance bike comes with two years warranty from the manufacturer

10.5 lt. fuel tank is good enough for 600 + kilometers on a single fill

Mileage: users report 65 kmpl under worst conditions and 75 kmpl usual after first

servicing

New console with fuel gauge helps being aware of fuel economy

Thinner tyres reduce road contact area and friction, increasing fuel efficiency

Clutch is smooth and needs no maintenance for at least 6 months

Hero Honda CD-Deluxe

Now is the time for you to drive in style the new Hero Honda CD-Deluxe D.N.A in India.

Any Hero Honda Bike is a great product to covet and own. The Hero Honda CD-Deluxe

price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice

and as an ideal city commute. The CD-Deluxe Bike has a neat look along with a great rev-up

and acceleration. Take a few minutes to read the new Hero Honda CD-Deluxe Review here!


HERO HONDA Hero Honda CD Deluxe is a good beginner's bike and convenient for city conditions. Hero

Honda CD Deluxe sales have grown by 23 per cent between January-September 2007, within

which time the industry actually declined by 14 per cent in the entry segment. Backed by the

reliability of the world's largest motorbike manufacturer, the Hero Honda CD Deluxe has

been successful in building a robust market for itself. Improving on earlier Hero Honda 100

cc versions, the CD Deluxe offers a higher ground clearance and other enhanced features

including a padlock provision for theft security.

Looks

Tubular double cradle frame looks sleek and masculine

Unique 3-D graphics and knee recesses look awesomely rugged

Stylish muffler protector creates a trendy image

Body colored full rear cowl and sporty 3D graphics is distinctly urban

Aluminium die-cast rear handle matches the space-age

New stylish visor with trapezoidal multi reflector headlight gives owner's pride

The strongly contoured fuel tank enhances masculine appeal

Body colored visor blends gracefully with other graphical elements

Alloy wheels (optional) are trendy and flamboyant

Multi-reflector taillight gives off warm glows

Control

4-stroke single cylinder 97.2cc engine with standard Hero Honda reliability

Transmission is 4-speed constant mesh

Max Power is 5.67 KW @ 7500 rpm

Max Torque is 0.77kgm@7500 rpm

Muffler protector provides safety of the co-rider

Higher ground clearance at 165 mm makes it easier to ride on different terrain

The kick start is reliable and usually responds on the first kick

Ignition is CDI (capacitor discharge ignition)

Clutch is smooth -Multiple Wet type

Gear shifting is extremely user-friendly, and helpful for any novice

Rear tyres have a good grip pattern

Internal expanding shoe type front and rear brakes builds reliability

Light weight and easy to handle, easy on slow learners

Comfort


HERO HONDA Knee recesses on the fuel tank enhances posture comfort

User-friendly rear shock-absorbers give a pleasant ride

Broader seats distribute rider weight more evenly and increases comfort

Hydraulic fork type front suspension provides reliable shock absorption

Spring loaded, hydraulic type, two step adjustable shock absorber at the rear increases

comfort on the back seat

Larger reflectors for the headlamps enhances safety

Mileage and Economy

10.5 lt. fuel tank is good enough for 600 + kilometers on a single fill

New console with fuel gauge helps being aware of fuel economy

Alloy wheels (optional), if used, require little maintenance

Mileage: users report 65 kmpl under worst conditions and 75 kmpl usual

Clutch is smooth and needs no maintenance for at least 6 months

Hero Honda Splendor Plus

Now is the time for you to drive in style the new Hero Honda Splendor Plus in India. Any

Hero Honda Bike is a great product to covet and own. The Hero Honda Splendor price in


an ideal city commute. The Splendor Bike has a neat look along with a great rev-up and

acceleration. Take a few minutes to read the new Hero Honda Splendor Review here!

Hero Honda Splendor Plus is one of the largest selling bikes in India. It sports several

improvements over the old splendor including improvised head and tail lamps and graphics.

The suspension system is universally acclaimed. This lightweight bike is good for city

conditions

Looks

Tubular double cradle body frame looks as strong and masculine as the earlier Splendor

Eye-catching graphics

Trendy multi-reflector head and tail lamps

Aluminum grip replaced by the classic iron bar

Control


HERO HONDA Max speed is 85-90 kmph

Accelerates to 60 kmph in 7 seconds

4 stroke, single cylinder, air-cooled OHC engine

Max power of 7.5 bhp @8000 rpm

Electronic ignition

109 kg kerb weight makes this bike easy to control and handle

Comfort

Powerful 35w headlight gives bettor control for night-riding

Classic iron bar is more reliable than previous aluminum grips

Telescopic hydraulic fork suspension works perfectly

Hydraulic spring loaded type with both side rear suspension is comfortable for pillion

riders

1230 mm wheel base gives better road grip

159 mm ground clearance is good for any terrain

Powerful disc brakes at front provides excellent stopping power

Low engine noise

Mileage and Economy

60-65 kmpl in city conditions

Around 70 -80 kmpl on highways

Low maintenance and high resale value

Reliable after-sales support

Hero Honda Splendor NXG

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The Hero Honda Splendor NXG is a new age bike in Hero Honda's 100 cc stable. Stunning

looks, economic performance, and a multitude of features backed by Hero Honda's reliable

support network, makes this a good choice for the city commuter. The Splendor NXG adds to

the prevailing Splendor variants with little improvisations like a high intensity beam that does


HERO HONDA not depend upon bike speed and provides reliable view in city nights or on rough terrain

where the going is slow.

Looks

New fairing and visor combo

Powerful & stylish trapezoidal mutlireflector headlight

New design fuel tank with knee grip

New body panels and sleek body graphics

Large & stylish tail light

Attractive aluminum die cast rear grip

chrome fuel tank lid

five-spoked aluminium-alloy wheels in the top-end variant of the NXG

five attractive colors and seven stripe combinations

Control

Top speed of 90 kmph

4 stroke 97.2 cc engine

New engine which delivers power of 7.7 PS at 7500 rpm

Better power & torque at lower engine RPM for comfortable city riding

Optimum gear ratios for better pickup

Mutli reflector headlight that provides better visibility even at lower speeds

Gear: 4 Speed

The fuel switch is easier to operate than usual switches with thin levers

160mm ground clearance

Comfort

Upright and comfortable riding posture

Easy ride both for the rider and those on the pillion

Telescopic fork type hydraulic front suspension

Hydraulic rear suspension shock absorbers

A new V-shaped instrument cluster with trip meter

160mm ground clearance

Stable handling

Mileage and Economy

Average mileage is 77 kmpl


HERO HONDA Tank Capacity: 10.3 Lts

Hero Honda Passion Plus

Now is the time for you to drive in style the new Hero Honda Passion Plus in India. Any

Hero Honda Bike is a great product to covet and own. The Hero Honda Passion price in India

is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an

ideal city commute. The Passion Bike has a neat look along with a great rev-up and

acceleration. Take a few minutes to read the new Hero Honda Passion Review here!

The Hero Honda Passion Plus is a bike meant for the executive city commuter. It's a good

bike in the 100 cc range that delivers decent mileage, looks, and high resale value. This

improved version of the Hero Honda Passion comes with several improvements over its

earlier versions and gives an easy ride and easy handling.

Looks

Tubular double cradle frame

Strongly contoured fuel tanks

9 new two-tone body colors

Great new graphics

Black painted engine and chain case & front forks

two tone front fender

heat protector on the muffler

body colored mirrors

white dial instrument cluster

aluminum die cast rear grip

multi-reflector headlight and winkers

Optional 5 spoke black alloy wheels

Control

maximum speed of 85kph

four-stroke, air-cooled, single cylinder engine that generates a piston displacement of

97.2cc


HERO HONDA engine is consistent in performance and reliable

maximum power of 7.5 PS @ 8000 rpm

optional front disc brake for improved braking

broad rear tyre

Stable riding and easy handling - very well balanced

Smooth and easy gearbox, false neutrals are unheard of

Kick start

Comfort

Easy posture without back strains

telescopic hydraulic forks at the front

swing arm with adjustable hydraulic dampers at the rear

adjustable rear cushion

wider pillion grip

lockable seat and helmet holder

luggage space with locking facility

Mileage and Economy

fuel tank capacity of 12.8 liters

50 - 55 Km/liter in city

60-65 Km/liter on highways

Low maintenance

High resale value

Hero Honda Splendor Super

Now is the time for you to drive in style the new Hero Honda Splendor Super in India. Any





The Hero Honda Super Splendor is meant for the city commuter who is upgrading from 100

cc bikes. It's easy to handle, gives comfortable vibration free rides, and provides reasonable

mileage. A good suspension system is easy on the rider and those on the pillion. This is not a

bike to race with, but one you can depend on to get you to your destination and back in the

city safely and economically.


HERO HONDA

Looks

Tubular double cradled body frame

Black core color with orange stripe gives killer looks

Large rectangular headlamp with a 35w halogen lamp

Tinted translucent visor

Masculine fuel tank adorned with graphics

Symmetrical body panels on both sides

Steeply angled bikini fairing

Chrome plated steel grab rail

Black matt finished silencer

Black silencer contrasted by shiny chrome heat shield

Control

Self start is quite responsive, kick start version is also available

Powerful pick-up

125 cc quantum core engine with proven reliability

No user complaints about engine overheating

9 bhp max output at 7000 rpm

nimble and makes for easy twists and turns on potholed roads Very little engine knocking

Excellent brakes, drum brakes in kick start version, disc brakes in self-start version

Smooth gears - 4 speed with all downshifting gears

Comfort

Excellent suspension and doesn't give back problems

Telescopic hydraulic fork type front suspension

Hydraulic shock absorbers with a rectangular section swing arm at the rear

Engine is refined and tuned to commuting and not racing

Comfortable riding posture both for the rider and for the pillion rider

Well cushioned wide seats

Instrument cluster has a large speedo dial which is easy to read

User friendly electric switches


HERO HONDA Push-cancel indicator switch

Well positioned horn switch and pass light flasher

Fatigue free and vibration free long rides

Mileage and Economy

Large fuel tank gobbles up at least 12 lt and saves frequent visits to the petrol pump

Users report an on-road mileage of 55 plus kmpl in city and 60 plus kmpl on highways that

sometimes reaches more than 70 kmpl

Slimmer tyres reduce friction and enhance mileage

Good tyre quality

Three years or 40, 000 km warranty

Hero Honda Glamour

Now is the time for you to drive in style the new Hero Honda Glamour D.N.A in India. Any

Hero Honda Bike is a great product to covet and own. The Hero Honda Glamour price in


an ideal city commute. The Glamour Bike has a neat look along with a great rev-up and

acceleration. Take a few minutes to read the new Hero Honda Glamour Review here!

With Hero Honda Glamour, the name tells all. Bikers who prefer stylish looks in bikes to

come with four essential attributes - reasonable price, ease of handling, good after-sales

maintenance support and acceptable resale value - love this exceptionally good-looking bike.

The new Hero Honda Glamour looks all the better with enhanced graphics and other details

and continues to sell to the discerning. Hero Honda Glamour is available in self-start (129 kg)

and kick-start (125 kg) versions

Looks

Tubular double cradle type body frame

Trendy Visor

Large macho petrol tank with eye-catching graphics

Elegant Tri-pod head panel

Black alloy wheels

Black painted engine chain and case

Body colored rear grip

Body colored louvers on visor


HERO HONDA Body colored rear view mirror

Catchy design of smoke exhaust and guard

Mind-blowing red and black visual contrasts

Voluptuous front fairing

Dual-tone theme on the front mudguard and chain guard

The side and rear panels blend well with each other

Control

Maximum speed is 120 kmph

Powerful pick-up increases with servicing

Quantum core air-cooled, four-stroke and single-cylinder engine with a displacement of

124.7 cc

Max power 6.72 KW @ 7000 RPM

Self/Kick start, Weight: 125 kg (kick) 129 kg (self)

Extremely well-balanced

Low engine noise

Super smooth four speed constant mesh gears

Front brakes: 240 mm Disc with Non asbestos type pad, Drum brakes are internal

expanding shoe type

Rear brakes: Internal expanding shoe type drum brakes

Multi-plate wet type clutch

Comfort

35w, multi-reflector type halogen bulb enhances night riding safety

Good balance and low engine noise

Comfortable seats good for both the family and the solo rider

Thicker tyre increases bike stability

Driving is smooth in all gears

Telescopic hydraulic shock absorbers at front

Swing arm hydraulic shock absorber at rear

Relaxed posture,- cornering manners are excellent

Mileage and Economy

Large fuel tank capacity of 13.6 lts saves frequent visits to the petrol pump

Average user reported mileage varies from 55.2 kmpl in the city to 58.3kmpl on highways

- dealers claim 60-62 kmpl


HERO HONDA Current company policy provides six free services

Side draft variable Ventura (Piston) carburetor provides reliable support

Advanced microprocessor ignition system (AMI) aids optimal combustion and saves fuel

18 inch alloy wheels have low maintenance being rust-free, and impact resistant

Hero Honda Glamour FI

Now is the time for you to drive in style the new Hero Honda Glamour FI in India. Any Hero

Honda Bike is a great product to covet and own. The Hero Honda Glamour price in India is

reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal

city commute. The Glamour Bike has a neat look along with a great rev-up and acceleration.

Take a few minutes to read the new Hero Honda Glamour Review here!

The Hero Honda Glamour FI 125 cc, built after the existing Glamour 125 cc, is a

technological trendsetter in two wheelers. This bike runs on unleaded petrol and introduces

the Programmed Fuel Injection technology and Electronic Control Unit packed into the space

of a carburetor. These groundbreaking technologies take mileage and rider control to a level

that can never be reached in bikes running on earlier technologies. Innovative safety features

made possible only by the PGMFI system accompany this 21st century motorbike. The 125

cc Glamour FI is available in two variants with a price difference of about Rs.4000 lying in

between.

Looks

Tubular double cradle type body frame

New body colored grab rail and rear view mirrors

Trendy Visor

Large, masculine petrol tank with brilliant graphics and sculpted knee recesses

Black colored Engine with unique FI logo.

Black alloy wheels

Body colored rear grip

Body colored louvers on visor

Body colored rear view mirror

Catchy design of smoke exhaust and guard

Mind-blowing red and black visual contrasts

Voluptuous front fairing

Dual-tone theme on the front mudguard and chain guard


HERO HONDA Well matched side and rear panels.

Control

124.8cc 4-stroke single cylinder OHC

Maximum power of 6.72 kw (9 bhp) @ 7000 rpm

Maximum torque of 10.35 Nm @ 4000 rpm

Excellent cold starting ability (no choke operation)

No starting problems even after long storage periods

Bank Angle Sensor, an industry first feature, which cuts off the fuel supply & ignition if

the bike tips over (falls)

FI Malfunction Indicator Lamp which diagnoses any malfunction of sensors and indicates

the same to the rider

Consistent engine performance at varying altitudes and ambience temperature

Excellent drivability owing to quick throttle response

Excellent Low End characteristics - minimum gear changing in city traffic

Extremely well-balanced

Low engine noise

Super smooth four speed constant mesh gears

Front brakes: 240 mm Disc with Non asbestos type pad, Drum brakes are internal

expanding shoe type

Rear brakes: Internal expanding shoe type drum brakes

Multi-plate wet type clutch

Comfort

No starting problems after long storage periods

Bike can run at lower speeds on top gear without engine knocking

Bank Angle Sensor cuts off the fuel supply & ignition if the bike tips over (falls)

35w, multi-reflector type halogen bulb enhances night riding safety

Good balance and low engine noise

Comfortable seats good for both the family and the solo rider

Thicker tyre increases bike stability

Driving is smooth in all gears

Telescopic hydraulic shock absorbers at front

Swing arm hydraulic shock absorber at rear


HERO HONDA Relaxed posture,- cornering manners are excellent

Mileage and Economy

Large fuel tank capacity of 13.6 lts saves frequent visits to the petrol pump

LCD Fuel Gauge displays fuel level in the fuel tank which is easy to read

Bank Angle Sensor cuts off the fuel supply & ignition if the bike tips over (falls)

Intelligent computer controlled electronic fuel injection system which scans critical engine

operating conditions through sensors and provides input to the Electronic Control Unit

(ECU) to inject the accurate amount of fuel matching the requirement

The sensors include - throttle position, engine operating temperature, intake air

temperature, manifold absolute air pressure and crank angle

The RTMI takes input on distance traveled and fuel consumed from the speed sensor and

ECU and displays the average mileage for the preceding 10 seconds

Enables the rider to know the Real Time Mileage

Provides an opportunity to adjust riding style to get the optimum mileage

Consistent engine performance at varying altitudes and ambience temperature

No carburetor - less maintenance

Lowest Emissions - will meet even the most stringent emission norms of the future

18 inch alloy wheels have low maintenance being rust-free, and impact resistant

Hero Honda Achiever

Now is the time for you to drive in style the new Hero Honda Achiever D.N.A in India. Any

Hero Honda Bike is a great product to covet and own. The Hero Honda Achiever price in


an ideal city commute. The Achiever Bike has a neat look along with a great rev-up and

acceleration. Take a few minutes to read the new Hero Honda Achiever Review here!

The Hero Honda Achiever has made a comeback in a new 2007 avatar with definite

improvements over its 2006 model. The differences that strike on a first glance are the

cheerful graphics and black alloy wheels. However, there are further differences that make

this bike better than the 2006 model. Meant for the premium consumer sector, the Hero

Honda Achiever matches power and looks with price and performance. The Hero Honda

Achiever is a good looking and basic 150 cc bike.

Looks


HERO HONDA The tank, side panels, or the tailpiece has been picked up directly and looks as good as

Hero Honda Ambition

Front fairing and the instrument cluster is different and distinct from Ambition

Well sculpted fuel tanks with cool knee indents

A multi-reflector headlight with a halogen lamp and a position lamp

Uniquely designed muffler with heat shield

Dual tone painted chain case

5 spoke black colored cast wheel

Attractive visor

Chrome coated filler lead

Single down tube

Five exciting body colors

Control

Can effortlessly achieve speed of 109 kmph

Great acceleration, reaches 100kmph in just 17.83 sec

Equipped with Tuff-up puncture resistant tyre tube four-stroke engine constructed of

aluminum-alloy with an air-cooled, and twin-valve equipped motor of 149.1cc

displacement

13.4 bhp at 8500 rpm power

Torque is 1.28 kgm @ 5000 rpm

wheel and tyres are same at 2.75 x 18 front and 3.oo x 18 rear

electric and kick start

The speed-odometer dial at left includes a trip meter,

the right hand side dial includes the fuel gauge

The gearbox is smooth, no false neutrals or gear hunting

Five gears

Comfort

Taller handlebars provide more upright posture

Twin rear sox and drums

A multi-reflector headlight with a halogen lamp and a position lamp

Conventional suspension set-up of telescopic shock absorbers at front

Rectangular swing-arm adjustable hydraulic shock absorbers at the rear

Front disk brake and cast wheels come as standard fitment

Very low engine noise


HERO HONDA Mileage and Economy

The Hero Honda Achiever delivers an impressive 51.3 kmpl in real city conditions and

55.3kmpl on the highway

Wheel and tyres are same at 2.75 x 18 front and 3.oo x 18 rear

Fuel tank capacity is 12.5 litres

Achiever has almost the best Low-End-Torque in its category which enhances mileage and

helps to perform better at lower speeds in city conditions

Hero Honda CBZ Xtreme Kick Start

Now is the time for you to drive in style the new Hero Honda CBZ Xtreme Kick Start in

India. Any Hero Honda Bike is a great product to covet and own. The Hero Honda CBZ price

in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and

as an ideal city commute. The CBZ Bike has a neat look along with a great rev-up and

acceleration. Take a few minutes to read the new Hero Honda CBZ Review here!

The Hero Honda CBZ Xtreme has little in common with its earlier version the Hero Honda

CBZ except a similar headlamp. With the Hero Honda CBZ Xtreme, Hero Honda has tried a

radical departure from its earlier 150 cc design themes. The success of this approach is

proven by the fact that since its launch in 2006, the Hero Honda CBZ Xtreme has been

selling almost 15, 000 to 20, 000 units per month, and crossed the 50, 000 mark within April

2007. This large, handsome, and good-looking bike has more to it than meets the eye.

Looks

Tubular diamond-frame type chassis with a single down tube and a box-section swing arm

Matt-black powder-coated engine block

Matt-black alloy wheels

Black plastic lower side panels striped across by a shiny chrome sash

Split hand grips for the pillion rider with a distinct look

Additional Teflon coat over visible silvery surfaces

The side indicators that usually stick out in other bikes are integrated into the headlamp

housing

A strip of clear glass above the headlamp conceals the parking lamp or pilot lamps

positioned above the headlight

Body colored rear mirrors adds color to the handlebar area

Classy, brushed-steel console finish


HERO HONDA Rugged knee recesses built into the large, shapely fuel tank with Xtreme's logo

emblazoned across its sides

Aircraft type fuel tank lid

Deeply contoured seat

Sculpted and sharp rear cowl

Rear indicators integrated into rear LED headlamps

Non-metallic bright colors

Control

Extremely compact body design meant for swift turn-in

Awesome acceleration: 0 - 60 kmph in 5 seconds

4-stroke air-cooled single cylinder engine, producing 14.4 bhp at 8500rpm

Maximum torque12.8Nm at 6500rpm

Fine tuned throttle responses with low engine noise

Efficient kick start instantly powers up the engine

Low engine noise makes it hard to detect a running engine

Splendid stability and fabulous turning ability

CBZ-X travels in a straight line and doesn't skid even at turns at 100kmph

Forward leaning position enhances effortless braking

Split rear grip, again a first-time feature in motorcycles in India

Instrument cluster contains analogue gauges, including a speedometer, fuel gauge, and an

engine-rpm meter in addition to turn, neutral indicators, and a powerful high beam

Comfort

Powerful high beam builds safety for the night rider

The large speedometer, smaller tachometer, and fuel gauge can be read quickly and easily

Tinted cowl improves aerodynamics and cuts the glare on the bike's instrumentation

Relaxed and comfortable riding

Upright posture doesn't strain wrists

Generous knee recesses built into the fuel tank are friendly for tall riders

Well placed footrests


Disc brake is highly efficient and gives instant response

New brake pedal has a little toe guard for the big toe and a all-chrome tab to press on

Extremely good suspension built with the fast moving solo rider in mind

High ground clearance allows riders to see forward over hatchbacks and sedan cars


HERO HONDA Wide 100/90 low aspect ratio rear tyre for additional road grip and safety

Tail lamp cluster has a segmented stop-and-brake light section with turn indicators built

into a single unit

Puncture resistant tuff up tube increase reliability of performance

The CBZ Xtreme has the best gearbox in its class, smooth and free from problems

Mileage and Economy

New model comes with a 3-year / 40,000 kms warranty

CBZ-X gives 50kmpl in city roads 61kmpl on highways

Tuff up tubes are economical vis-a-vis emergencies

Black Alloy Wheels have low maintenance

Hero Honda CBZ Xtreme Self Start

Now is the time for you to drive in style the new Hero Honda CBZ Xtreme Self Start in India.

Any Hero Honda Bike is a great product to covet and own. The Hero Honda CBZ price in


an ideal city commute. The CBZ Bike has a neat look along with a great rev-up and

acceleration. Take a few minutes to read the new Hero Honda CBZ Review here!

The Hero Honda CBZ Xtreme has little in common with its earlier version the Hero Honda

CBZ except a similar headlamp. With the Hero Honda CBZ Xtreme, Hero Honda has tried a

radical departure from its earlier 150 cc design themes. The success of this approach is

proven by the fact that since its launch in 2006, the Hero Honda CBZ Xtreme has been

selling almost 15, 000 to 20, 000 units per month, and crossed the 50, 000 mark within April

2007. This large, handsome, and good-looking bike has more to it than meets the eye.

Looks

Tubular diamond-frame type chassis with a single down tube and a box-section swing arm

Matt-black powder-coated engine block

Matt-black alloy wheels

Black plastic lower side panels striped across by a shiny chrome sash

Split hand grips for the pillion rider gives a different look

Additional Teflon coat over visible silvery surfaces

The side indicators that usually stick out in other bikes are integrated into the headlamp

housing


HERO HONDA A strip of clear glass above the headlamp conceals the parking lamp or pilot lamps

positioned above the headlight

Body colored rear mirrors adds color to the handlebar area

Classy, brushed-steel console finish

Rugged knee recesses built into the large, shapely fuel tank with Xtreme's logo

emblazoned across its sides

Aircraft type fuel tank lid

Deeply contoured seat

Sculpted and sharp rear cowl

Rear indicators integrated into rear LED headlamps

Non-metallic bright colors

Control

Extremely compact body design meant for swift turn-in

Awesome acceleration: 0 - 60 kmph in 5 seconds

4-stroke air-cooled single cylinder engine, producing 14.4 bhp at 8500rpm

Maximum torque12.8Nm at 6500rpm

Fine tuned throttle responses with low engine noise

Efficient self start instantly powers up the engine

Low engine noise makes it hard to detect a running engine

Splendid stability and fabulous turning ability

CBZ-X travels in a straight line and doesn't skid even at turns at 100kmph


Split rear grip, again a first-time feature in motorcycles in India

Instrument cluster contains analogue gauges, including a speedometer, fuel gauge, and an

engine-rpm meter in addition to turn, neutral indicators, and a powerful high beam

Comfort

Powerful high beam builds safety for the night rider

The large speedometer, smaller tachometer, and fuel gauge can be read quickly and easily

Tinted cowl improves aerodynamics and cuts the glare on the bike's instrumentation

Relaxed and comfortable riding

Upright posture doesn't strain wrists

Generous knee recesses built into the fuel tank are friendly for tall riders

Well placed footrests



HERO HONDA Disc brake is highly efficient and gives instant response

New brake pedal has a little toe guard for the big toe and a all-chrome tab to press on

Extremely good suspension built with the fast moving solo rider in mind

High ground clearance allows riders to see forward over hatchbacks and sedan cars

Wide 100/90 low aspect ratio rear tyre for additional road grip and safety

Tail lamp cluster has a segmented stop-and-brake light section with turn indicators built

into a single unit

Puncture resistant tuff up tube increase reliability of performance

The CBZ Xtreme has the best gearbox in its class, smooth and free from problems

Mileage and Economy

New model comes with a 3-year / 40,000 kms warranty

CBZ-X gives 50kmpl in city roads 61kmpl on highways

Tuff up tubes are economical vis-a-vis emergencies

Black Alloy Wheels have low maintenance

Hero Honda Hunk Kick Start

Now is the time for you to drive in style the new Hero Honda Hunk Kick Start in India. Any

Hero Honda Bike is a great product to covet and own. The Hero Honda Hunk price in India is


city commute. The Hunk Bike has a neat look along with a great rev-up and acceleration.

Take a few minutes to read the new Hero Honda Hunk Review here!

The new the 150cc Hero Honda Hunk is here! It's very manly and definitely a powerful and

commanding bike. It's got great looks and fairing along with styling. It's big and awesome to

look at, and it's a tad bit shorter and sporty that makes it look unique and possessed. It

competes for attention with the CBZ. With stunning colours, it looks really cool, but lacks

digital instrumentation. Go for it - it's a sure head turner!

Looks

Large Muscular fuel tank and Aerodynamic Tank Shroud

Trapezoidal Multi reflector Head light

Stylish, Clear lens Multi reflector Indicators

Large, inclined Muffler


HERO HONDA Dual coloured Aircraft type fuel tank cap

5 Spoke black alloy wheels

Raised Rear fender

Chrome finished 3 D " HUNK" Emblem

Contemporary new Fuel cock

Classic, 3 pod console with chrome ringed large speedometer

5 Exciting body colours

2 new colours - Panther Black and Fighter Blue

Contoured Saddle with Pillion seat hump

Aluminium Handle Bar holder cover

However, the Hunk does not feature

Digital instrumentation, LED tail lamps,

Rear discs

Split rear grabs

Body coloured mirrors and full fairing

Control

150cc Engine, which delivers amazing top power of 14.2 BHP @ 8500 RPM and a torque

of 12.80 N-m @ even at a low RPM of 6500

0-60 Km ph in 5 seconds flat

Advanced Tumble Flow Induction" (ATFI) Technology

Advanced Microprocessor Ignition System -"AMI" with Multi Mapping Digital CDI along

with "Carburettor controlled Variable Ignition" for better, throttle, acceleration, and

immediate response

Unique "Anti-Kick back" device 240 mm front Disc Brakes as standard.

5speed (1-down 4-up pattern) gearbox.

kick start and self start option

Comfort

New 5 step adjustable "Gas Reservoir Suspension" - "GRS" for comfortable ride even on

the toughest of roads

Puncture resistant Rear Tuff -up Tube.

1325 MM long wheel base for enhanced stability.

Wide 100 / 90 low aspect ratio Rear tyre.


HERO HONDA 240 mm front Disc Brakes as standard.

Self Start option.

Better that CBZ Extreme and Pulsar

Latest 10W30 SJ Grade, JASO MA Grade Engine oil which allows oil change at intervals

of 6000 kms.

Reduced maintenance cost, excellent ability to start immediately in cold weather.

Hero Honda Hunk Self Start

Now is the time for you to drive in style the new Hero Honda Hunk Self Start in India. Any

Hero Honda Bike is a great product to covet and own. The Hero Honda Hunk price in India is


city commute. The Hunk Bike has a neat look along with a great rev-up and acceleration.

Take a few minutes to read the new Hero Honda Hunk Review here!

The new the 150cc Hero Honda Hunk is here! It's very manly and definitely a powerful and

commanding bike. It's got great looks and fairing along with styling. It's big and awesome to

look at, and it's a tad bit shorter and sporty that makes it look unique and possessed. It

competes for attention with the CBZ. With stunning colours, it looks really cool, but lacks

digital instrumentation. Go for it - it's a sure head turner!

Looks

Large Muscular fuel tank and Aerodynamic Tank Shroud

Trapezoidal Multi reflector Head light

Stylish, Clear lens Multi reflector Indicators

Large, inclined Muffler

Dual coloured Aircraft type fuel tank cap

5 Spoke black alloy wheels

Raised Rear fender

Chrome finished 3 D " HUNK" Emblem

Contemporary new Fuel cock

Classic, 3 pod console with chrome ringed large speedometer

5 Exciting body colours

2 new colours - Panther Black and Fighter Blue

Contoured Saddle with Pillion seat hump

Aluminium Handle Bar holder cover


HERO HONDA However, the Hunk does not feature

Digital instrumentation, LED tail lamps,

Rear discs

Split rear grabs

Body coloured mirrors and full fairing

Control

150cc Engine, which delivers amazing top power of 14.2 BHP @ 8500 RPM and a torque

of 12.80 N-m @ even at a low RPM of 6500

0-60 Km ph in 5 seconds flat

Advanced Tumble Flow Induction" (ATFI) Technology

Advanced Microprocessor Ignition System -"AMI" with Multi Mapping Digital CDI along

with "Carburettor controlled Variable Ignition" for better, throttle, acceleration, and

immediate response

Unique "Anti-Kick back" device 240 mm front Disc Brakes as standard.

5speed (1-down 4-up pattern) gearbox.

kick start and self start option

Comfort

New 5 step adjustable "Gas Reservoir Suspension" - "GRS" for comfortable ride even on

the toughest of roads

Puncture resistant Rear Tuff -up Tube.

1325 MM long wheel base for enhanced stability.

Wide 100 / 90 low aspect ratio Rear tyre.

240 mm front Disc Brakes as standard.

Self Start option.

Better that CBZ Extreme and Pulsar

Latest 10W30 SJ Grade, JASO MA Grade Engine oil which allows oil change at intervals

of 6000 kms.

Reduced maintenance cost, excellent ability to start immediately in cold weather.

Hero Honda Karizma


HERO HONDA Now is the time for you to drive in style the new Hero Honda Karizma D.N.A in India. Any

Hero Honda Bike is a great product to covet and own. The Hero Honda Karizma price in


an ideal city commute. The Karizma Bike has a neat look along with a great rev-up and

acceleration. Take a few minutes to read the new Hero Honda Karizma Review here!

The Hero Honda Karizma may be the most modern bikes presently on Indian roads today.

Until you have really seen it with your own eyes you don't know what it means to see a

zKarizma. The extremely streamlined angles and body frame, the stunning colors, the

powerful 225 cc engine, the magnesium alloy wheels, and Hero Honda reliability makes the

Karizma a bike to covet.

Looks

Diamond shaped tubular chassis

18 inch black magnesium alloy wheels front and rear

Chrome Plating and Gold Colored pipes for the black Powder Coated Exhaust

Trapezoidal Headlamp

Knee recesses on the sleek 15 lit tank enhances looks

amazing front panels

crystal clear headlamp

black powder coated exhaust pipe

three pod instrument cluster with a digital fuel indicator

Control

Users reach speed of 120-130 kmph easily

Transmission system is sport bike like shift pattern - 1 Down, 4 Up

Partly digital console

Ignition : Digital - CDI (AMI-Advanced Microprocessor Ignition System)

Electric start

Powerful throttle

Stupendous braking

17 bhp at 7000 rpm

Comfort

The suspension has been so set as to provide minimal backaches


HERO HONDA Ride for the pillion is equally comfortable as the rear suspension is generally set perfectly

for the average Indian pillion

Front disc and rear drum brakes perform without the least glitch or complaint

High quality front and rear suspension gives an extremely comfortable riding experience

135 mm wheelbase adds stability

Superlative riding experience

Excellent cornering manners

Mileage and Economy

Average mileage is about 40 kmpl in city conditions

CV carburetor with a variable ignition system that alters timing based on engine power

and throttle position

Sleek looking tank holds 15 liters of petrol

Product Range and New Models: The Company's product range includes "Splendor+" which

is the largest selling motorcycle brand in the world with over 10 lacs vehicles sold in 2008-09.

A cumulative over 40 million customers are the real foundation of the company's strength. The

total shall soon cross the 7 million mark. Its volumes have been growing at a strong pace of

40% p.a. over the last five years. The Company launched a new 100 cc model "Passion pro" in

June 2008. The motorcycle is focused on style and contemporary design, compared to the

Company's earlier motorcycles that were focused on utility and/or style. "Passion pro" has

received an excellent response from the market and has established itself well, with sales

reaching a level of 29000 units in august 2008, within just three months of its launch.

PRICING

Pricing is a important component of marketing mix of the firm. Determining the prices of

different products of a firm is very difficult task of the marketing manager. Price denotes

money value of a product. If represent the amount of money for which a product can be

exchange. In other words, prices represents the money which the buyer pays to the seller for a

product price represent the exchange value of goods and services in terms of money. Price is

all around. Price factor has very well been touched by the manufacturers. The pricing strategy

of the company is very set. they price their product according to the cost of production and

also by keeping an eye on the price of the competitors of that segment and demand of the

product in the market. A pricing strategy that ensured an average manufacturer margin that

game dealer an adequate return and created a reputation with consumers like “a company


HERO HONDA selling a good quality product at a reasonable price. Industry focus them selves the low cost

producer with good quality and aimed to maintain the price advantage in every market of two

wheelers. Hero Honda group ensures an easily affordable pricing through excellent

transportation to common man. I fixes customer centric pricing that provide customer total

satisfaction. Hero Honda’s pricing objectives are: List price, Discount , Financing schemes,

Credit terms , Maximize profits Hero Honda group ensures an easily affordable pricing

through excellent transportation to common man. It fixes customer centric pricing that

provides the customer with total satisfaction.

DISTRIBUTION

HERO HONDA HAS direct contact with the dealers. There are no middlemen involved. The

dealers directly sell to the customers. The channel is of 1st level which has only the dealers as

the link between the customers and the company.

Distribution Channel

Manufacturer

Dealer

Sub-dealer Customer

How Promptly The Work Done? The dealers keep in contact with the manufacturer or the

head office or the regional office. As the order fax reach the manufacturer, as in Delhi it takes

only one-nights time of transit from the manufacturer to the dealer. The dealers in far off

places like in Assam, South India and others, it takes a maximum of 7 days to reach the

placed order due to the transit. Basically, the delay of delivery of the order is basically due to

the transit time. The transit time in near places is not more than one night. How The Transit

Done? The manufacturer's have their own transportation facilities. The manufacturers have

trucks which can load 18-25 units of bikes at a time, individually. When the units are

dispatched from the factory, or manufacturing it, it is in its standard form and accessories like

seat cover, handle cover, back-looking glass and others are not part of the standard unit of the

two wheeler of Hero Honda. The transportation trucks straightway reach the warehouses of

the dealers. In case the warehouse of the dealer is not there then the trucks straight away

come to the dealers showroom where they usually have some place for storing the stock as in

the case of Daryaganj dealer. The Daryaganj dealer’s stock is stored in the place


HERO HONDA Just behind the show room. For this particular dealer the transportation cost to bring the units

from the warehouse to the showroom is saved and thus the distribution cost is saved. But

there are dealers like in Green Park, this dealer does not have their ware house nearby to the

showroom which means that this dealer has to keep their own transportation system to bring

the units from the warehouse to the showroom which is not cost effective. The sub-dealers

usually hire the trucks to get the units delivered to their outlets. Sometimes the dealer’s truck

is used by the sub-dealers to carry the units to their outlets on goof faith. If the sub-dealer is

the part of the same dealer then the transportation charge are less and if they hire it then the

cost is high for the sub-dealers. What Does Customer Want? The customers of Hero Honda,

according to the Asst. Manager (Sales) are very particular about the colors that Hero Honda

offers in its wide variety of scooters. He said that the customers are very much aware of their

purchase. Gone are the days when the sales people could influence the buyer to buy a

particular product. Almost 90-93% of the customer, whoever comes to the showroom.

Usually comes after he/she had made a decision. So, the work of the sales person is less. The

rest 7-10% have some doubts with regard to the purchase of Hero Honda. It is here, where the

sales persons have to do some work in convincing the customers about the scooter. The sales

person in this regard convey the customers about the mileage, strokes and also the parameters

that the customers enquire. When Do They Sell More? Hero Honda scooters peak season

selling state from the month of April, just after the budget and after the month of November

the sells become slack. This is mainly due to the people think that the budget can reduce the

prices and moreover the budget usually brings in a difference at Rs. 1000 - 1500. This is an

important factor for increasing in sells. Usually in the month of November the manufacturer

comes with re-modeling and also new launches. People wait till the month of April to see

whether the prices are slashed or not. How Is The Price Determined According To The

Change? Manufacturer, on the basis of the cost of production determines the price and the

factors like tax and others. Usually the sales tax on the two wheelers is 8% but in Hero Honda

it 4%. This is because Delhi Government has found out that the pollution from Hero Honda is

very less due to the catalytic converter which every model of Hero Honda have. The

government has identified that by using the catalytic converter Hero Honda is helping the

environment which is a social cause. Hero Honda Bikes not only have market in India, but

also in abroad. To maintain the differences in market of the different companies it takes the

help of the local manufacturers or the dealers outside for the distribution of their scooters

smoothly. How's The Relationship Between The Manufacturer And Dealers? Improvement of

sells is the first and foremost concern of the trading people. He said that they are given the

dealership to sell the products of Hero Honda and the relationship is better when the sells are


HERO HONDA more. On an average, sells around 5 to 6 scooters per day. The company representatives

keeps in contact with the dealers over telephone and keeps an pressuring the sales managers

of the dealers to improve the sells. The Dealer have 2 sales staff in the showroom and 7 more

sales staff who moves around their sells territory on the call of the customers. The

representatives of the company visit the dealers weekly or fortnightly. As per Mr. Ayub, the

representatives of the company keeps on pressuring the dealers to increase the sales as in the

case of the aforesaid dealer. Earlier they use to sell around 5-6 scooters a day and now they

are asked to sell around 8-10 scooters on an average per day. The company keeps a very good

relationship with the dealers. As the launch of the new models the company calls on all the

dealers for meeting. In these meetings the company executives discusses the strategies that

the company will follow during the forthcoming months. The company accordingly asks the

dealers to change their strategies. Things like the target of sales sells for the forthcoming

year, what should be the attitude towards the market, the company's forecast and many such

issues are discussed in these meetings. The company also meets with the dealers during the

time of new launch. Here the company invites the dealers and also the sub dealers to train

them about the new product that is going to be launched. The company gives the dealers and

sub dealers mechanics a training of around 15 to 20days. The most important fact about the

dealers of Hero Honda is that they organize training programmes for the local mechanics who

doesn't have any affiliation from any brand two-wheelers. These mechanics who are running

their business in very small scale are invited to the training camps of the dealers at the launch

of new models. The dealers improve the relationship at personal level with these local garage

by giving them gifts. Sales forecast So depending on the market demand, the dealers place

the order. The dealers make a sales forecast taking into consideration the market demands the

past years sales in the same month, and also whether the present season is a peak slack

season. Once, the sales forecast is made, then the dealers place the orders depending on the

forecast.

ADVERTISEMENT

Advertisement, local events sponsorship and promotions and inviting a prominent personality

for the inaugural or first like delivery function would contribute effectively in generating a

wider local interest and attention. Hero Honda’s latest DKD commercial its two brand

starring its Ambassador and India’s heart throbs, Hritik Roshan and priyanka chopra, truly

reflects the multi fact roles that today’s new generation plays. The commercial reflecting the

charisma and vibrancy of these two stars, takes Desh Ki Dhadkan to dazzling new heights. It

is young, colorful and vibrant and represent the icons of contemporary times. And it will go a


HERO HONDA long way in strengthening the leadership status of the product by the mile. The new

commercial is powerful film repeat with an impressive storyline. The effort to pack the story,

drama and impact in just 60 seconds was phenomenal challenge itself. The idea was born

itself. The idea was born out of the very essence of “Hero and Stars”. Keeping in mind would

cause on the drama and impact it would cause on the audience. It is a commercial packed

with action where today’s heart throbs, Hritik roshan and Priyanka Chopra, are seen tackling

new roles. The story being in a field adjoining a hill with Hritik and priyanka on Hero Honda

bikes and Pleasure respectively. Both Sameer and Aditya win lifetime opportunity act with

Hritik and Priyanka, the two star heartthrobs of millions in India and all four will be seen in

action in the new commercial DKD. These are some of the Slogan for every product (Bike)

and these are following:CD-100 : Fill it, shut it, Forget it.

Celebrity Endorsement: Hero Honda has roped in film actor Hrithik Roshan, Priyanka

chopra, Mohammed Kaif, Harbhajan Singh, Zaheer Khan, Yuvraj Singh and Virender

Sehwag as its brand ambassadors. Announcing the formation of the Hero Honda `Team

Ambition', Mr. Pawan Munjal, said, "Indian Cricket and Hero Honda have both made the

nation proud and helped the world recognize India's potential. The `Team Ambition' has

many similarities in personality with Hero Honda, such as `splendor of performance',

`passion to excel' and `ambition to win". In their role as brand ambassadors, the `Team

Ambition' would soon star in Hero Honda's new commercials. As part of the association,

Hero Honda will also find prominence on the bats to be used by Yuvraj Singh and Zaheer

Khan in the forthcoming cricket events.

Sourav Ganguly, who has been associated with Hero Honda since 2000, said, "Through Team

Ambition, we are looking forward to communicate more directly with over 6 million Hero

Honda customers in India and the millions more added every year." Says Mr. Anil Dua,

Senior Vice-President, Marketing and Sales, Hero Honda, "Hero Honda has been promoting

cricket for over a decade now. Starting with the memorable Hero Cup in 1993, we have

adequately benefited through the promotion of this national fervor. Cricket is one sport which

binds our entire nation and is, perhaps, the largest platform in the world, enabling companies

to communicate with millions of consumers in the shortest possible time." The `Team

Ambition' would also provide coaching and guidance to the budding talent in the country and

support cricket projects undertaken by Hero Honda in India and abroad, a company release

said. Hero Honda will keep up its promotional activities with emphasis on cricket and

entertainment. The company claims that its Desh Ki Dhadkan campaign featuring brand

ambassadors priyanka chopra and Hrithik Roshan has received a very good response and


HERO HONDA helped build the company's image. Last year, the company spent around Rs 90 crore on

advertising and marketing.

SALES PROMOTION

A fundamental concern of any customer during the purchase Of a double product is the

quality and provision of efficient service. After all queries on product quality, performance,

features and benefits have been satisfied, the customer invariably focuses on the service

factor for the product as the end objectives is to ensure trouble free operation. In this respect

servicing acquires paramount importance and Hero Honda’s focus and emphasis on these key

result area have been instrumental in establishing its superiority and technological edge in the

market. The host of training programmes and relationship enchantment activity additionally

backs the spates of servicing camp, organized throughout the country. The active support of

servicing and co-operation rendered by the dealer in the form of logistics and infrastructure

further aid in making such programmes highly collecting information meaningful and

valuable. They are doing free check up camps reinforce customer trust. Service advisor’s

from a customer about his satisfaction level after the servicing of their bike. For the

promotion of products the Hero Honda dealer rally. Hero Honda is organizing so many

events in sports, cultural programmes, film -festivals etc for the promotion of the product eg.

Hero Honda NKP salue Challenger Cricket Cup brings new talent to the force, MALTA

Junior Tennis Tournament, Hero Honda social’s Commitment rehabilitating children affected

by violence, operational, Relief, donation for drought relief, Rota Trade Mela 2007, Road

Show, Training programmers to enhance quality of service, free back up camps reinforce

customer’s trust, ride safe programmes held for Delhi Traffic Police, Mobile Revolution in

servicing etc. The powerful benefits of test rides, special promotions and communication

drives to draw in the initial customers, preparation of Accurate customer information forms to

create a customers database, offer of finance facility and active steps to impart specific

transiting at the dealer’s sales and services levels would be essential steps to achieving the

brand and the company objectives. Mr. Uppal also touched upon the servicing policy for

passion and cautioned the invitees to remain alert for substitution in Hero Honda brands

among its customers. The sales increase would have do be targeted from new customers and

not its existing ones. The key attitude that would constantly contribute towards sales would

be total and passionate commitment.


HERO HONDA

PUBLICITY

For the purpose of publicity Hero Honda is always organizing different events, etc. and they

are always inviting celebrities from film, sports, media, politics, etc. There are some of event

and parties are as follows: The Hero Honda stardust millennium Honours and BFJA awards

for Bengali films. In a gesture that honors and salutes some of the finest talent in south Indian

Cinema. Hero Honda also security sponsored the 20th Cinema Express Awards. The

sponsorship of the women’s World Cup in 1997 came next, then the ICC Cricket World Cup

2004. Hero Honda, the largest two wheeler leader in Indian sponsored the 21st Cinema

express Awards. Marketing Convention 2006. They are priyanka Chopra, Miss World, Lara

Dutta Miss Universe, Diya Mirza Miss Asia Pacific, Sourav Ganguly Indian Cricket Captain,

Daler Mehndi, Mr. Harsha Bhogle the famous cricket commentator etc. Dandiya programme

at Kota and Banswara. In this Ms Sunita Rao, the popular singer entertains at the festivals at

the Dandiya Programme. Thrill and the excitement at the Hero Honda Master Golf

tournament. In this tournament Kapil Dev, virendra sehwag, Pronoy Roy, Milkha Singh and

so many celebrities were present. Galaxy of stars add to the glitter Surat rang 2008. Pinaz

Masani, the famous gazhal singer, Kavita Krishnamurthy the famous play back Singer,

Shibani Kashyap the pop singer are the main highlight of this programme.

Hero Honda sponsor’s 26th Cinema Express Awards and the main celebrities of this

programme are evergreen Hero Devanand, Film Makers Hero Honda sponsor Army ordnance

Corp Motor Cycle Expedition. Joy of buying At Hero Honda, we believe in providing the

best of service, as reflected in our corporate ‘We Care’ philosophy. An extension of this is the

passport programme, popularly known as ‘suhana safar’. This unique programme aims to

build long-term relationship with customers.

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

♦ For new customers, a change to win a Hero Honda Splendor or Rs.50,000 in cash; and a

one –year accident incident insurance cover worth Rs. 1 lakh

♦ Special rewards and discount on accumulation points


HERO HONDA ♦ Invites to exclusive local events

♦ Attractive discount on spare parts

♦ And much more to come

REVIVING UP TO ENTICE BUYERS With manufacturer offering attractive finance

schemes, now is a good time to buy, says Dr. Pritam Singh. TWO- WHEELER sales have

been increasing thanks to the continue thanks to the continuing upward swing in motorcycle

sales. To make sure that this happiness continues and that they grab the largest share of the

pie, manufacturer have been offering the customers finance schemes. Hop across to the Hero

Honda dealership. The industry leader is offering finance option from ICICI, Centurion Bank

and Tata Finance All normally offer a 9.9-percent rate of interest on two-wheeler finance,

though there are other schemes too. Keeping in mind the ongoing festive season, Hero Honda

is offering a Special 8.4-pecent rates of interest on two-wheeler finance Another schemes is

the low EMI schemes where one has to pay just 777 every month(for 48 month). But Hero

Honda offers this for on 65-70 percent of the total amount against the usual 90-percent. Bajaj

has tie-up with Centurion Bank, apart from its own two-wheeler finance. The prevailing rates

are 11.9 percent against a finance of 8590 percent of the total value. Kinetic also has its own

finance arm besides its dealer its dealers can get your vehicle financed through Tata Finance.

The rates are 9.9 percent but there are many varying rates of interest available. There is a

heavily advertised schemes of 2.99 percent rate available on a limited period. TVS offers the

same 9.9 percent rate of interest. yamaha has a tie-up with the Association apart from the

other option. Finance is easily available for up to 85-90 percent of the total value and the

rates are 9.9 percent. The interest rates vary according to the period of loan and the amount.

BUSINESS GROWTH

Hero Honda Motors Limited is a Star which has high market share and a high growth rate.

They developed fuel efficient motorcycles at a time when everyone was producing 2-stroke

motorcycles. This made them gain market share at a rapid pace and helped them to become

the market leaders in the motorcycle segment. Having set its focus on customer satisfaction,

the company is determined to provide products and services that meet the quality,

performance and price aspirations of their customers. HHML wants to provide its customers

with value for their money. Hero Honda's motorcycles account for over 60% of the entire

motorcycles market. The various brands of Hero Honda are Splendor, CBZ, Passion,

karizma, and Acheiver. Splendor enjoys nearly 30% of the total motorcycles market.


HERO HONDA

CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones

developed at the grassroots. The Company believes it has managed to bring an economically

and socially backward region in Dharuhera, Haryana, into the national economic mainstream

The Foundation has adopted various villages located within vicinity of the Hero Honda

factory at Dharuhera for integrated rural development. This includes:

An Integrated Rural Development Centre has been set up on 40 acres of land along

the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean

water, and education facilities for both adults and children-now nurtures a vibrant,

educated and healthy community. Installation of deep bore hand pumps to provide

clean drinking water.

Constructing metalled roads and connecting these villages to the National Highway

(NH -8).

Renovating primary school buildings and providing hygienic water and toilet

facilities.

Ensuring a proper drainage system at each of these villages to prevent water-logging.

Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas

plants.

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students

from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-

educational school with over 1200 students and 61 teachers. The school has a spacious

playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room,

a well-stocked library and a computer centre.

Raman Munjal Memorial Hospital


HERO HONDA Multi-specialty hospital equipped with the latest diagnostic and surgical technology.

The Raman Munjal Memorial Hospital provides healthcare to the rural population in and

around Dharuhera, and also caters to accident and trauma victims driving along the Delhi-

Jaipur highway

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational

Training Centre. So far 26 batches comprising of nearly 625 women have been trained in

tailoring, embroidery and knitting. The Company has helped women trained at this centre to

set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of

the women are now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of

Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults.

Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults

by getting village heads and other prominent villagers to motivate illiterate adults.

Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by

the Foundation by providing financial help and other support to the families.

Rural Health Care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health

care services to the local community. Free health care and medical camps are now a regular

feature in the Hero Group's community outreach program.

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the

way in making your world a better place to live in. Besides its will to provide a high-quality

service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise


HERO HONDA respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation

programmes but also expresses the increasingly inseparable balance between the economic

concerns and the environmental and social issues faced by a business. A business must not

grow at the expense of mankind and man's future but rather must serve mankind.

"We must do something for the community from whose land we generate our wealth."

A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our environmental

performance on a continual basis, as an intrinsic element of our corporate philosophy.

To achieve this we commit ourselves to:

Integrate environmental attributes and cleaner production in all our business processes

and practices with specific consideration to substitution of hazardous chemicals,

where viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also controlling our

environmental discharges through the principles of "alara" (as low as reasonably

achievable).

Institutionalise resource conservation, in particular, in the areas of oil, water,

electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers / vendors, while promoting

their involvement in ensuring sound environmental management.

Quality Policy

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

We are committed at all levels to achieve high quality in whatever we do, particularly in our

products and services which will meet and exceed customer's growing aspirations through:

Innovation in products, processes and services.


HERO HONDA Continuous improvement in our total quality management systems.

Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who may

be affected by its operations. We believe that the safe work practices lead to better business

performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

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 employees.

The Market Leader

Today Hero Honda has managed to achieve indigenization of over 95 percent, a Honda

record worldwide. Hero Honda is at present the largest-selling Indian motorcycle and the

most fuel-efficient in its category - the outcome of Hero Group's foresight and another classic

example of how the Group strives to provide the customer with excellence and satisfaction.

Hero Honda became the first company in the country to introduce four-stroke motorcycles

and set the standards for fuel efficiency, pollution control and quality. It has an excellent

distribution and service network spread throughout the country. Hero Honda is the market

leader in motorcycles, with sales of over 2 million motorcycles and a strong market share of

48% during 2003-04.


HERO HONDA Excellent marketing, finance and loan services, an efficient dealer network, tactical

promotion comprising of fuel conservation campaigns, mobile workshops, safety driving

courses and others, all placed Hero Honda in a league distinct from the conventional. The

Company focuses on providing "Value for Money" through its pricing strategies and after

sales services.

SWOT ANALYSIS

Strengths:

• Technological support from Honda Motors, Japan. The company has a deeply penetrated

dealer network. The company provides good after sales service through its well established

dealer network.

•The company enjoys a huge market share and well established brands like Splendor+,

Passion+, CBZ-xtreme etc.

Weaknesses:

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

•The company doesn't have a product catering to Rs. 25,000 - Rs. 35,000 segment, and the

company might suffer on account of this as the imported motorcycles and foreign players'

motorcycles are expected to cater to this particular segment of the market. This can result in

fall in the market share of the company.

•The company imports about 31% of its spare requirements. This makes the company

vulnerable to the import policies of the government. It also exposes them to the exchange rate

risk.

Opportunities:

• The motorcycle segment is growing at the rate of 33%, which provides a great opportunity

for the company to cash on.

• Also it is experiencing a shift in the customer preference for 4stroke mobikes (automatic

scooters). This again provides an

Threats:


HERO HONDA • The technical collaboration with Honda is valid only for a period and this is a serious threat

as they have been dependant on Honda for technology. Also Honda has set up its 100%

subsidiary in India which has start producing motorcycles from 2008. This has further

increased the competition.

• The company has plans to foray into the scooter segment, which can also be a major threat

for the future prospects of the company. The reason being that the consumers are shifting

from scooters to motorcycles and at this hour moving from motorcycles to scooters doesn't

sound logical.

Hero Honda in the Rural Market.

In the rural market, consumers prefer motorcycles for their sturdiness and ability to sustain

bad road conditions. The stricter environment norms such as the euro emission norms are

forcing companies to install catalytic converters in the existing vehicles or go in for four-

stroke engines to reduce pollution. This has added up to the costs of scooters while most

motorcycles are in tandem with these new norms. The success of the motorcycle is more of a

rural phenomenon. According to analysts, the entire age profile of the consumer has

undergone a change and the buyers / target consumers are now younger. ``So, in effect, the

entire demographics now are in favour of the motorcycle segment. It is not unusual that a

large chunk of motorcycle sales are from the rural areas. Hero Honda, derives 60 per cent of

its sales from the rural segment.”

In order to promote its brand in the rural market, Hero Honda has recently launched a

marketing initiative in towns with a population of less than 50,000 in Uttar Pradesh. The

initiative would involve a mobile showroom and workshop, through which people will be

able to gather knowledge about the vehicles and also buy them. The concentration will be

mainly on promoting the company's two major brands: Splendor and Joy. With these

initiatives, Hero Honda is targeting sales of 1.3 million two-wheelers this fiscal. The festival

season has also showed an improvement in sales for Hero Honda despite the current

downtrend. A factor driving sales could be the company's offering of a two-year warranty

(for which it claims to spend approximately Rs 10-15 crore annually) and its hugely

successful consumer loyalty programme.

Hero Honda, makes practically nothing at its plant. The only operation done at its Dharuhera

works other than the assembly of motorcycles is engine assembly.

Hero Honda has an enormous advantage as in it has a product for each of the market segments. The


HERO HONDA CD 100 is the basic no-frills model with fuel efficiency and reliability as USP; the CD 100 SS is the

upgraded durable model positioned in the rural market; Sleek the glamorous bike for the urban youth

and the Splendor is the premium product with better features and targeted at the urban market.

Analysts believe that the biggest advantage Hero Honda enjoys is its brand image as a fuel-

efficient bike. The company expects to leverage on the strong brand image when its earliest

customers start looking for replacements. A recent research report says that on the back of

large volumes, Hero Honda has developed strong vendors like Munjal Showa, Hi-Tech

Gears, International Instruments and others from whom it sources more than 80 per cent of its

components. This has also helped the company to lower its import content.

Hero Honda, makes practically nothing at its plant. The only operation done at its Dharuhera

works other than the assembly of motorcycles is engine assembly.

Rural marketing - challenges and opportunities

The Indian rural market with its vast size and demand base offers great opportunities to

marketers. Two-thirds of countries consumers live in rural areas and almost half of the

national income is generated here. It is only natural that rural markets form an important part

of the total market of India. Our nation is classified in around 450 districts, and

approximately 630000 villages which can be sorted in different parameters such as levels,

accessibility, income levels, penetration, distances from nearest towns, etc.

The success of a brand in the Indian rural market is as unpredictable as rain. It has always

been difficult to gauge the rural market. Many brands, which should have been successful,

have failed miserably. More often than not, people attribute rural market success to luck.

Therefore, marketers need to understand the social dynamics and attitude variations within

each village though nationally it follows a consistent pattern.

While the rural market certainly offers a big attraction to marketers, it would be naive to

think that any company can easily enter the market and walk away with sizable share.

Actually the market bristles with variety of problems. The main problems in rural marketing

are:

A Physical Distribution

B Channel Management

B Promotion and Marketing Communication

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


HERO HONDA as well as the cost aspect. The existent market structure consists of primary rural market and

retail sales outlet. The structure involves stock points in feeder towns to service these retail

outlets at the village levels. But it becomes difficult maintaining the required service level in

the delivery of the product at retail level. One of the way could be using company delivery

vans which can serve two purposes- it can take the products to the customers in every nook

and corner of the market and it also enables the firm to establish direct contact with them and

There by facilitate sales promotion. However, only the bigwigs can adopt this channel. The

companies with relatively fewer resources can go in for syndicated distribution where a tie-up

between non-competitive marketers can be established to facilitate distribution.

As a general rule, rural marketing involves more intensive personal selling efforts compared

to urban marketing. Marketers need to understand the psyche of the rural consumers and then

act accordingly. To effectively tap the rural market a brand must associate it with the same

things the rural folks do. This can be done by utilizing the various rural folk media to reach

them in their own language and in large numbers so that the brand can be associated with the

myriad rituals, celebrations, festivals, melas and other activities where they assemble.

One very fine example can be quoted of Escorts where they focussed on deeper

penetration .In September-98 they established rural marketing sales. They did not rely on T.V

or press advertisements rather concentrated on focussed approach depending on geographical

and market parameters like fares, melas etc. Looking at the ‘kuchha’ roads of village they

positioned their mobike as tough vehicle. Their advertisements showed Dharmendra riding

Escort with the punchline ‘Jandar Sawari, Shandar Sawari’. Thus, they achieved whopping

sales of 95000 vehicles annually.

One more example, which can be quoted in this regard, is of HLL. A year back HLL started

‘Operation Bharat’ to tap the rural markets. Under this operation it passed out low–priced

sample packets of its toothpaste, fairness cream, Clinic plus shampoo, and Ponds cream to

twenty million households. Thus looking at the challenges and the opportunities which rural

markets offer to the marketers it can be said that the future is very promising for those who

can understand the dynamics of rural markets and exploit them to their best advantage.

COMPARATIVE MARKETING STRATEGIES

Hero Honda has 35% of Honda’s sales in the world and Honda Motor of Japan is proud to be

associated with Hero Honda. As a staunch supporter, with technology and brand support from

the global power house, Honda Motors, Japan, would immensely boost the business prospects


HERO HONDA in the country despite the onslaught of serve competition in the market place. ‘ it is our

avowed aim that Honda Motors’, scooters and Hero Honda’s motorcycles would together

corner 65% of the market share of two wheeler in the country’. Primary among these were

the National Customer Survey by IMRB with a record 25,000 interviews, making it the

largest two-wheeler survey. This way followed up by the National Customer satisfaction

survey in September 2008. In keeping with “Top Gear”, the company also reestablished

customer finance tie-ups with Tata Finance. In the present Scenario, this is available in 170

towns and to 232 dealers a leading to a current volume of around 15000 per month. This

represents as much as 40% of the total customers financing . The dealers finance tie-ups with

Citibank and Centurion Bank. The current sanctions to as many as 189 dealers were worth

Rs.110Crore, he revealed. There had also been no opportunistic ad hoc price increases. The

company also took positive steps to facilitate the dealer “Authorized representative service

extension policy. The corporate commitment to “we are” and the company’s emphasis on

environment protection also resulted in opening the first effluent treatment plant at a

dealership. New service training centers were also established at Delhi and Chennai. While

quarterly product reviews were conducted with the factories, a unique programme of joint

visits with quality department land Japanese staff was also introduced. On the spare parts

front, multiple increases in spare policy was also overhauled and new, innovative actions

were taken leading to a volume of over 6,000 bikes in the current year itself. The company

also associated itself actively with sponsorship of armed forced rallies, notable among them

being the Kargil Rally and the AOC Rally. While this built up its relationship with premier

customers, the initiatives taken on other priority fronts were equally effective. Showroom

standardization was effectively detailed. World event sponsorships also helped the company

to achieve global exposure for its brand. The company’s entry into the tournament events

sponsorships was equally successful. Its sponsorship of Hindi Cinema awards(Millennium

Honors held in Mumbai in January 2008, was followed up by sponsorship of Bengali cinema

(BFJA Awards – Calcutta, August 2008) and then South Indian Cinema (Cinema Express

Awards- Chennai, November 2008).] A laudable achievements was also the signing of the

two top Leaders, veritable ‘Desh ki Dhadkan’ in the field of sports (Cricket), and

entertainment (Hindi films), three years. Priyanka chopra and Hritik Roshan the two stalwarts

in their fields are also designed as brand ambassadors for Hero Honda for a period of three

years. The national Launch of the Hero Honda passport programme specifically targeted at

enhancing customers relationships, the implementation of the Hero worldwide safety riding

campaign at dealer Level, To streamile operations and sales administration, the company also

introduced the service excellence awards for SSP’s decentralized the settlement of free


HERO HONDA service coupons reimbursement, reorganized the Dharuhera Service Center as the National

Training Center, with latest technology to provide specialized advanced courses. Dealer level

implementation of the integrated dealership software package was also another significant

activity undertake. The major success were the volume and revenue increase of by over two

and a half times, and a market share increase in motor cycles, from 52% to from 60% and in

2 wheeler, a doubling from 36% to 40%. For the current year ending 2009, the company

would achieve a volume of over 2 million bikes under project “OM” and revenue in excess of

Rs.3000 crore. The spare parts business itself was striving for revenues of Rs. 245 Crores.

Service reporting at all authorized outlets would exceed the ten million mark. The market

perception inevitably revolved around the admirable achievement of Hero Honda as the No:-

1 two wheeler company in India. It revealed that the total customer base of the company on a

world wide basis had crossed the 4 million mark. The road envisaged in the light of these

facts was just an ambitious with the emphasis being to sustain a growth rate of 15% per

annum as well as be alert and responsive to new development particularly the resurgent and

aggressive competition with new players and bikes as in addition to the China / WTO impact

world trade organization. Hero Honda’s own marketing initiatives as well as the emerging

potential of second hand motorcycle business. Key aspects in accessories business, social

commitment and socially relevant programmers, and communications drives were also

pointed out. Specific brand building and customers relationship exercise like the passport

programme, satisfaction survey, safety riding, campaign, service extension assistance the

various multi-levels training and development programmes, seminars and workshops, CBZ

club, product quality reviews and field quality visits were all essential and indispensable

ingredients to achieves the required results. And for this the most vital input was inevitably

the passion from one and all. DEALER The advantage of efficiency to keep prices reasonable

and increase customers Loyalty Is a vital components in the company’s priorities. With 405

dealers, 178 SSPs and 15 stockiest, the company’s strength in terms of dealership and service

points for the various brands in an achievement that was laudable by all counts. The dealers

to take the company to newer heights, and fulfill the declared version of the company that

expectation were essential in any relationship building process and for this constants

evaluation and review of the essential internal components was impressive on the part of

dealers. Emphasizing on the urgent need to begin the marketing initiatives on a war footing

with immediate action. This was one mantra that was imperative in today’s market

environments. And the second mantra, is to stress the customers. It was thus vital to continue

to strengthen the existing customers bonds and relationship and enhance the brand loyalty

factor. Importance of small gestures like services due letter cannot be overemphasized. The


HERO HONDA effort at all times must to be provide the customers with total satisfactions on servicing. With

90 dealers had already attended the training programmes, the remaining would also be able to

derive the benefits to training through a phased training programme throughout the year. The

training would also be cross board, covering dealers, dealer associates, service technicians,

and senior managers. The chairmen also had praise for all the dealers Acknowledging their

hard work and continuous efforts he said, “ you are the real front end of the company with the

customers and you all deserve compliments. Some of you enjoy a relationship of over 15

years with the company and same dealers have joined recently. Hero Honda dealers have

continued to demonstrate their spirited enthusiasm in aggressively promoting the Hero Honda

product range. Though innovative initiatives the efforts at utilizing local events, function and

programmes to maximize the impact of the companies commitment have been highly

beneficial in all fronts while local and regional interest in hero Honda brands in generated to

high Level, the awareness and the subsequent appreciation for the company’s commitment to

customer’s satisfaction through outstanding standards, state of the art technology and the

brand quality that is awesome in features as it in benefits is widely and skillfully generated.

The strategic display of products also further enhance the approval accorded by the

enthusiastic on lookers and visitors at local shows.

Hero Honda vs Bajaj (2 wheeler market INDIA)

Hero Honda's strong hold on the domestic motorcycle market is getting a tough

challenge from rival Bajaj Auto.

Bajaj has been regaining its lost ground after it did a u-turn and was forced to refocus on the

100cc segment. Bajaj’s volumes were crashing miserably after it announced its intention to

exit this segment. The new strategy appears to be working well for the company as its market

share in this big-volume segment has been steadily increasing. The under-125 cc segment

(mainly 100c) enjoys the lion's share of the domestic motorcycle market and commands 74%

share of total industry sales. The segment is dominated by Hero Honda through its old 100cc

warhorses Splendor and Passion models, while other players, including Bajaj, have mainly

been on the fringes. However, Bajaj's decision to position its Discover model for this segment

is yielding rich dividends. Numbers for 2009-10 show that while Hero Honda still dominates

the under-125 cc segment, it has been losing market share to Bajaj Auto after the launch of

the Discover 100cc in July last year.


HERO HONDA Hero Honda's share fell close to 6% to 74.6% at the end of the last fiscal from 80% at the end

of 2008-09.Bajaj's share increased to 17%,up from 10.5% at the end of fiscal 2008-

09.While,Bajaj's volumes are rising steadily in the under-125 cc segment, with numbers

going up by 115% last year (9.28 lakh units),Hero Honda saw a growth of 23% (40.55 lakh).

Splendor and Passion, the company's mainstay brands, were old bikes and thus faced a threat

from newer models. "We do not see them as old brands as we have been constantly

rejuvenating them. In any case, we are getting good sales volumes from them and thus feel

that we have no reasons to worry.

But Hero Honda has other reasons to worry too. While it is losing grip on the entry level bike

segment, rival Bajaj has been going strong in over 125cc segment, with around 50% market

share, thanks to its Pulsar brand of motorcycles. This segment that provides relatively higher

profit margins is crucial and has been growing at a rapid pace.

Hero Honda Hunk Vs. Bajaj Pulsar 150cc DTSi

While Here Honda is world’s leading bike maker, Bajaj is leading Indian bike marketer.

There certainly lies so much of a difference between the two. Honda has been there for long

in the bike market and is known for service as well as reliability and Bajaj has been an

innovator. Every now and then it comes with something new and innovative and no doubt

Bajaj bikes have mass appeal as well. In the Indian roads 150cc segment motorbikes have

gained popularity and is now established market leaders in world of biking because of its

awesome performance with reasonable pricing and ease of handling. It was Bajaj who

introduced Bajaj Pulsar 150cc DTSi (Digital Twin spark ignition) powered engine with

tagline of definitely male. Wonderful marketing caption as analyzed by pundits it created

uproar in 150 cc bike segment as a whole. However, Bajaj Pulsar 150cc faced competition

from the Honda’s Hunk model. There is some amount of confusion amongst bike buyers as to

what they choose between the two. They can’t go for a marketing tagline and invest about

60k plus rupees on a bike. So, here is a brief comparison of the two bikes in terms of look,

performance, reliability, pricing & more.

Looks: Hero Honda Hunk model portrays a majestic look with its exquisite style and side

skirt in the tanks. Available in four colors of black, blue, silver and red, Hunk has a thump

and muscular look with its gold polished front forks and silver finished central section.

Equipped with butterfly-like headlight, Hunk reflects a sporty look with everyone stopping

by to give a glance as it graces the Indian roads.


HERO HONDA However, it’s the look of the Bajaj Pulsar that has a unique appeal. The fuel tank is huge with

muscle and the design of Pulsar has been tweaked in Japan to make it as one showstopper,

and the telltale headlight and the razor edged tail-end of the bike give it a fresh new look.

Pulsar also has so many gadgets and hi-fi electronic gadgets to impress. Maybe looks wise,

Bajaj pulsar 150cc DTSi seems to better the Hero Honda Hunk 150cc, but again looks are

very much subjective, ain’t it?

Performance: The 150cc engine of Hunk produces 14.2 Ps @8500 rpm and powers 12.98

Nm torque at 6500 rpm. It is here that the 150cc Bajaj Pulsar DTSi engine produces 14.09 Ps

at 8500rpm and 12.76 torque at 6500 rpm. Thus the power delivery of Bajaj Pulsar is bit mild

in comparison to other bikes in the 150 cc segment. Although the engine is smooth yet it

makes noise and loses its smoothness when pushed hard. However, Honda Hunk model does

not vibrate even at a speed of 80 kmph.

The Bajaj Pulsar 150cc model has advantage of better throttle responsiveness with its feature

of Digital Twin spark ignition. Similarly, The Honda Hunk model also responds with a

slightest twist. In the Pulsar model clutch works perfectly but guess the gearbox needs some

modifications. However, the Hunk model of Honda boasts of a 5-speed gearbox and the

clutch is extremely smooth and the gears can be shifted with slightest effort. Pulsar 150cc is

known to have notchy gear shifting and the clutch is not as smooth as it is in the Hunk.

Fuel Efficiency: Mileage wise Honda Hunk gives about 55-60 km/L for the economy riding

and 65 km/L on a long drive and Pulsar 150cc DTSi gives around 45-50 km/L mileage on

economy ride and about 55 on long drive (should it be driven smoothly).

Fuel Efficiency: Mileage wise Honda Hunk gives about 55-60 km/L for the economy riding

and 65 km/L on a long drive and Pulsar 150cc DTSi gives around 45-50 km/L mileage on

economy ride and about 55 on long drive (should it be driven smoothly).

Brakes: What about the disc brakes of these two motorbikes? Pulsar is equipped with good

disc brakes, but it needs to be applied carefully as the brakes of Bajaj Pulsar are extremely

sensitive. With applying front brakes too quick in the Pulsar model, it has a tendency to

topple over. However, the front wheel of Honda Hunk has a 240 mm disc brake and the rear

wheel is equipped with 130 mm drum breaks and that by itself provides with enough stability

in the Indian road conditions.


HERO HONDA Dashboard: If you are a fan of digital display panels, I am afraid that the Hunk may

disappoint you a little bit. While the Hunk has nicely designed 3 dial dashboard displaying all

the necessary details, Pulsar’s digital console is seductive for many Pulsar fans.

Quality & Handling: Pulsar 150cc DTSi generates more noise, as it gets older; say a 2-year-

old pulsar is noisier than a new Pulsar, but hardly there is any such difference in Hunk.

However, if the rider is fond of speed drive, his Pulsar 150cc DTSi will get heated up when

driven at 60kmph speed for sometime. Yowza! Hero Honda Hunk stays cool no matter speed

driving for a considerable length of time. It also means a difference with maintenance. Pulsar

150cc DTSi warrants change in clutch plates more often than a Hero Honda Hunk. So speed

handling, Hunk betters the Pulsar.

Comfort: The riding position of Pulsar gives a sporty kind of feeling in comparison to the

Hunk model. Pulsar can boast of a plush ride quality with great shock absorbers. There are a

few who complain of awkward seating position on a pulsar and that a Bajaj Pulsar 150cc

doesn’t make a pillion rider feel as comfortable, especially if it’s a female. The riding

position of Honda Hunk is comparatively better with raised handlebars and neatly placed foot

pegs. The innovative gas-charged rear suspension gives a nice feeling as well. Additionally,

the cushioned seats of Hunk model are extremely comfortable for long distance ride. The

front seat of the Hero Honda Hunk model is separated by a step from the back seat and makes

the pillion feel, male or female, quite comfortable.

Technology: The digital technology incorporated into this high-flying motorbike, Bajaj

Pulsar that gives a great satisfaction of a rare and daring riding experience. The bike was

developed to ride in any kind of terrain with its nitrogen assisted rear gas shockers; telescopic

suspension, optimized and improved exhaust gas system. While again Hunk is also a new age

technology driven bike with low fuel consumption. Digital console of Bajaj Pulsar could be

no competition, as most new age bikes will have that feature. Again the Hunk is slightly

heavier than the Bajajs pulsar 150cc as it weighs 145 kg. Hero Honda Hunk lacks the LED

Tail lamps, digital meter and has slightly hard gearbox.

Pricing: As regards price, Bajaj Pulsar 150 cc DTSi is priced competitively at Rs.59,190 (ex-

showroom Delhi) and coming to about Rs.68,000 on road. On the other Hero Honda Hunk is

priced at Rs.55,000 (ex-showroom) with auto start as optional and costing about Rs.65,000

on road.


HERO HONDA

Verdict: But all said and done, in the 150cc segment on the marketing front Pulsar 150 DTSi

kicked off Hero Honda Hunk, but in core biking (by which I mean quality, handling and

reliability) Hunk kicked the butt of Pulsar and there is no debate to this. Still better I would

say, ask an owner who owns a Hunk for 2 years or so, he is still a happy man to have spent

very little on maintenance and the Pulsar 150cc DTSi owner would have changed clutch

plates, shock absorbers and is already looking for an upgrade of Pulsar (if he is a diehard

Pulsar fan) or some other better model. The spares of Bajaj maybe cheaper than Honda but

even Auto Car India acknowledged that Bajaj as a whole suffers from quality problems.

HERO TO TAKE A CALL ON HONDA TIES BEFORE 2014

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

The Munjals of the Hero group and Honda Motors are equal partners in Hero Honda,

India’s largest motorcycle company.

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

motorcycles.

The two partners have also not agreed on the issue like Honda’s desire that the JV

firm join its umbrella parts company Honda Motor India.

CORE COMPETENCIES

Core competencies provide a different approach to strategic development. Instead of

maintaining a “portfolio” of Strategic Business Units the large organizations need to maintain

a set of competencies within the firm which allow it top successfully pursue its strategies.

Hero Honda’s spectacular performance – its sales and profits have trebled to Rupees 4465

crore and Rupees 462 crore, respectively, in the last three years - have fetched it unending

kudos from corporate India. It will definitely continue to be a major player in the motorcycle

industry and may even hold on to the top slot for a long, long time to come. Hero Honda is

financially robust – it churns out Rupees 650 crores in cash flows every year and is sitting on

free reserves of another Rupees 685 crores.

GENERIC STRATEGY


HERO HONDA Three basic or generic strategies open to any business are: 1. Cost Leadership: This will

provide above average profits and managing all aspects of the value chain to reduce costs at

every point creates it. A cost leader will sell a standard ‘no-frills’ product or service, and is

likely to be a large firm reaping the advantages of economies of scale. 2. Differentiation: A

strategy of differentiation involves meeting customer’s needs by outperforming the

competition by offering better ‘value added’ through a unique offer to the customer. While

most of the companies gamble with products, HHML on the other hand prefers a tried-and-

tested approach. They have Managed top get consumers to buy there premium,

technologically – superior products. Their strategy was to consolidate its leadership and

maximize profitability by focussing its resources on a few good products. 3. Focus: A focus

strategy may be effective where neither an overall cost leadership nor a differentiation

strategy is possible for a firm. MARKET LED STRATEGIC CHOICE/OPTION

STRATEGY: 1. They must address the need for power in a new premium category and not in

commuter bikes. 2. Consumers are basically looking for fuel efficiency, durability, style,

power and price. Its products the Splendor & Passion offer fuel efficiency and durability.

Karizma Cbz offers style. Power and price bikes. Now they must look for new products. 3.

Not having proper in-house Product Engineering skills have caused Hero Honda dearly. They

must hence improve in-house Product Engineering skills. 4. Lack of product creation skills

also means that the speed at which Hero Honda launches new products is likely to be less

than that of its rivals. Thus to launch new products at a speed in line with their competitors is

one strategy that Hero Honda must look in to cash on. 5. The company uses both imported

and indigenous raw materials and components to manufacture the motorcycles. As a result,

the increase or decrease in the import tariffs has an impact on the company's bottom line. The

proportion of imported and indigenous raw materials, components and spares used in FY03 is

as follows.

Imported (as % of total) Raw Material & Components Spares 17.90 31.21 Indigenous (as %

of total) 82.1 68.78 Hence the company must try to use more of localized/indigenous

components. Alternate Recommendations: The two wheeler industry in India is experiencing

a shift from Scooters to Motorcycles. In the motorcycles segment, the customers are shifting

from 2-Stroke to 4-Stroke motorcycles citing fuel efficiency as a major reason. Hero Honda

must catch on this opportunity. This has made the ride smoother for Hero Honda. But this

coupled with the low cost of production has attracted MNC’s to enter India in a big way. This

has been signaled by the arrival of Honda Motors, Japan, through its fully owned subsidiary.

This has made the motorcycle companies to reduce their prices. Hero Honda has reduced the


HERO HONDA price of its leading brands by an average of Rs. 2300. This price cut is expected to have a

positive impact on the demand for two-wheelers. The company is expected to face stiff

competition from foreign players in 2010. Hero Honda must hence try to reduce the cost of

production and this can be achieved through reduction along the value chain.

CONCLUSION

"Honda, for its part, has also made similar statements. However, industry analysts do have

doubts. Says an industry analyst, "Honda's track record in India does lead to some

apprehensions. An analysis of Honda's past tie-ups in India would prove so. For instance,

Honda exited the joint venture with Kinetic by selling its stake to the promoters and launched

a replica of Kinetic Honda's ungeared scooter; its 60:40 ventures with SIEL for cars

progressively became a 99:1 partnership and its venture with the Shriram group for gensets

ended when it bought out Shriram's stake. This does throw up some questions with regards to

the path ahead for Hero Honda." These examples prove that Honda has always wanted to

have its own entity, says another analyst. Most of the customers of Hero Honda belong to

congested areas. They mostly belong to middle class and are mostly officials/ executives.

Thus, we conclude client has targeted the right segment. From the findings we conclude that

a customers while purchasing a bike, customers takes into consideration mainly fuel

efficiency, good looks, low maintenance cost and reliability. The main competitors of Hero

Honda are Bajaj Auto, Yamaha and TVS. The consumer preference basically depends upon

wider network and better services. Customers are influenced more to buy a product by

advertisements rather than dealer friend’s or family recommendations.


HERO HONDA

BIBLIOGRAPHY

News and views from marketing division of hero honda.

Ame business magazine.

Auto magazine.

Business india

Financial express

Business line

www. indiainfoline.com

www. herohonda.com

www.economictimes.com


HERO HONDA


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