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Navnirman Institute of Management
An
Assignment Project
On
“Hero Motocorp Ltd”
Submitted By,
“Bikrant rout” Roll No: 155
In The Partial Fulfillment of the Requirement
For the Assignment Advance Marketing Management in Semester VI in
B.B.A. Programme
Submitted To,
Navnirman Institute of Management;
(NIM-B.B.A. collage), Bharthana, Surat.
Affiliated To VNSGU,Surat
Academic Year 2012-2013
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Navnirman Institute of Management
Introduction of Hero MotoCorp Ltd
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. In 2001, the company achieved the
coveted position of being the largest two-wheeler manufacturing company in India
and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a
calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.
Hero MotoCorp two wheelers are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which
are located in the state of Haryana in northern India. The third and the latest
manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.
In the 1980's the Company pioneered the introduction of fuel-efficient,
environment friendly four-stroke motorcycles in the country. It became the first
company to launch the Fuel Injection (FI) technology in Indian motorcycles, with
the launch of the Glamour FI in June 2006. Its plants use world class equipment
and processes and have become a benchmark in leanness and productivity.
Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to
innovate and develop cutting edge products and processes.Hero MotoCorp offers
wide range of two wheeler products that include motorcycles and scooters, and has
set the industry standards across all the market segments.
The Company's growth in the two wheeler market in India is the result of an
intrinsic ability to increase reach in new geographies and growth markets. Hero
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Navnirman Institute of Management
MotoCorp's extensive sales and service network now spans over to 5000 customer
touch points. These comprise a mix of authorized dealerships, service & spare
parts outlets, and dealer-appointed outlets across the country.
The new Hero is rising and is poised to shine on the global arena. Company's new
identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus
on mobility and technology and creating global footprint. Building and promoting
new brand identity will be central to all its initiatives, utilizing every opportunity
and leveraging its strong presence across sports, entertainment and ground- level
activation.
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Navnirman Institute of Management
Mission
Hero MotoCorp's mission is to become a global enterprise fulfilling its customers'
needs and aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates. The company will
provide an engaging environment for its people to perform to their true potential. It
will continue its focus on value creation and enduring relationships with its
partners.
Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and
an empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new
identity, reflects its commitment towards providing world class mobility solutions
with renewed focus on expanding company's footprint in the global arena.
Strategy
Hero MotoCorp's key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
operational efficiency, aggressively expand its reach to customers, continue to
invest in brand building activities and ensure customer and shareholder delight.
Relevancy with current market strategy
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Navnirman Institute of Management
Product: -
The main strategy of this company I product is to provide a stylish, durable bikes
which can easily fit to Indian peoples and easily can able to run in particular Indian
road.
Price: -
Hero Moto corp is a company that provides the new technology product in Indian
market in very less price. There are many products like splendor, passion that it’s
were very less comparing to that segments bikes in market. This company bits its
competitor with related to price.
Place: -
Hero Moto corp’s service centers and showrooms are available in all parts of the
any city so that the consumers as can easily go to nearest service center and
showrooms. Due to this strategy the sales of hero bikes are also increase.
Promotion:-
The promotion of Hero Moto corp is very unique in past when the Hero and Honda
companies we partners. The use the sentence likes “Hero Honda das eke dhedkan”.
The company also has big names in brand promoters.
Target markets of the company
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Navnirman Institute of Management
The target people a mainly all sector of the people and there is a verities of
products in the product mix of company. The sectors and segments are divided
among the income people, style, age, speed etc. some of the product a as bellow.
Impulse:-
this product is lunched recently for those who like sporty and adventures bike. The
target population was mainly adventures person and who have little high income,
as this bike is around 75000 I also can be good for the rich individual in rural area.
This bike fall in150cc bike segment.
CD Dawn:-
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Navnirman Institute of Management
This bike have a unique punch line in advertisement that “CD Dawn Public ka
apna Transport”. By this punch line we can identify that this bike may be for
common people who were average income. This bike falls under 100cc bike
segment’s this bike for low income people so its price was also less which is only
38000 rupees.
CD Deluxe:-
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Navnirman Institute of Management
This bike as also have a punch line that ”CD Deluxe Naye India ke deluxe bike”.
The target costumer may be the common man who have medium range income it is
also a stylize bike in comparison to CD Dawn. But it also falls under 100cc bike
segment. Its price is around 45000 rupees.
Pleasure:-
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Navnirman Institute of Management
This is the only scooter bike in Hero Motocorp company. This scooter has the
punch line that “Why should boys have all the fun”. By this line we can clearly
identify that this scooter is mainly for ladies. It also falls under 100cc scooter
segments scooter which has price of 45000 rupees.
Splendor+:-
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Navnirman Institute of Management
This bike has won many awards in Indian market as very successful bike which
gave a lot of profit to the company. This bike has also falls under 100cc bike
segments. This bike is also for normal people who have medium rang income .its
price is also around 48000 rupees.
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Navnirman Institute of Management
Passionpro:-
This bike is also successful bike in the Indian market .this bike as also a punch line
that”Ab srif style he style bole ga”. This suggest that this bike is very styles and its
target market may be for youth and students ,it comes under low income segment
people .it also falls under 100cc bike segments which had a price of 54000 rupees.
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Navnirman Institute of Management
Glamour Pro F1:-
This bike has a new technology of program fuel injection .This bike is made of
new technology for which any other bike does not have this technology in this
segment. This bike is also is for stylish people and students. But it is a high
segment income people as its price is around 69000 rupees .it engine is also good
and falls under 125cc segments bike.
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Navnirman Institute of Management
Achiever:-
This bike is a new product for the company. This bike is also have the punch line
that “solid like you”. so we can identify that this bike may be for stronger people.
This bike is also falls under 150cc bike segment. The target person may me all
costumers who have medium range income. Its price is also around 60000b rupees.
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Navnirman Institute of Management
CBZ extreme:-
This bike is very stylize look .The target costumer may be the stylish people have
the high income .this bike is also have the punch line “live off the edge”. is bike is
also falls under 150cc bike segments .but the price is high which is around 73000
rupees. This bike is mainly used by the youth and students.
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Navnirman Institute of Management
Hunk:-
This bike is also very styles and is very muscular bike .the target market may be
the higher income segment customer as well as the youth. As it is for high segment
people its price is around 73000 rupees and it also falls under 150cc bike segments.
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Navnirman Institute of Management
Karizma ZMR :-
This bike is very stylize and has very sporty look. This bike is for the customers
who have high income as well like the speed riding of bike.tis bike is mainly used
my youth and students. As it is for high income people its price is also high which
around 105000 rupees. This bike falls under 225cc bike segments.
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Navnirman Institute of Management
Leap Hybrid scooter:-
This scooter is lunched in 2012 Delhi expo and not been in the market. Since the
initiation on a solo journey last year, MotoCorp is quickly increasing its research
and development (R&D) proficiencies, as it displayed at Auto Show its purposes
and vision for the future. This project involves a selection people of some people
within the set-up of R&D at Hero MotoCorp, with some other international
consultants.
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Navnirman Institute of Management
Five different strategy of the company.
Increasing network and manufacturing Excellency:-
Over the last five years, more than 2000 customer touch points have been added to
the Company’s network.The main strategy is to expand the network and give
services to every part of the country. India’s two wheeler industry continues to
benefit from an expanding economy. A revival in agriculture, growing job
opportunities in the service sector and expanding urbanization ensured a healthy
demand for two wheelers. . By the end of the year, overall production capacity
went up and the Company was able to ramp up from 4.6 million units to 5.4
million units. Over the last three years, production capacity has been augmented
by over 2 million units.
Information system:-
Hero MotoCorp’s robust technology heritage was strengthened further during the
year under review. IT initiatives were embarked upon at multiple levels. There was
a strong focus on supply chain integration, process efficiency and accurate and
prompt decision making. By the end of the financial year, the Company had
successfully deployed the system at more than 530 dealers outlets. Crossing this
milestone was no mean achievement, considering the scope and magnitude of the
project. As part of the project, important enhancements were made in the dealers’
portal, which helped boost their integration with the organization’s supply chain.
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Navnirman Institute of Management
People approach:-
The emphasis has always been on buildinga talent pipeline taking into account a
mediumto-long-term perspective.The Company has tried to attract the right talent,
build capabilities and facilitate career development to drive organisational
objectives. The Company augmented its young talent by inducting a fresh batch of
management trainees and GETs like every year. The ET programme has been re-
engineered. Our five-month long induction is based on a ‘Job Function Criteria’
that recognise strengths and facilitate appropriate job alignment. Besides, to widen
the incumbent’s learning horizon, On-the-Job Project (OTJP) and Job Simulation
were introduced for the first time.
Green management:-
The Company’s environmental consciousness – embedded in the credo “we care’’
– continued to be a key area of focus. Since inception, the Company has invested
substantially in clean and green technologies: a fluidized bed (for paint hanger
burning), an advanced incinerator (for paint and sludge), solid landfill (for the
disposal of solid, hazardous and non-hazardous waste), effluent and sewage
treatment plants, and rain water harvesting sites (reference sites), Green Roof (at
Hardwar plant) and others. The Green Vendor Development Programmers has
struck deep roots since its commencement in 2007. These collaborative
programmers call for partner companies to demonstrate their commitment towards
improved environmental performance and striving for continual improvement.
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Navnirman Institute of Management
Advertisement strategy
The company had the strategy to provide their bikes in low range price witch to
compotators with same function which compotators has. The company and made
very big endowments there is very big list of band promoters like Shahrukh Khan,
Ranbir Kapoor, Akon, Priynka Chopda and may big names are included in the list.
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Navnirman Institute of Management
New Rural Marketing Strategy of Hero Motocorp Ltd
Introduction
Marketing principles are the same for rural or urban markets. It is the approach to
applying these principles that requires adjustments according to specific
opportunities and constraints resulting from a host of rural conditions in India that
a marketer faces.
Rural population is culturally heterogeneous. They differ in their religious beliefs,
cultural factors, customs, traditions, social patterns, linguistic factors, literacy
level, and incomes. The major religious groups in rural India include Hindus,
Muslims, Christians, Buddhists, and Sikhs.
The literacy level in rural India is estimated to be about 30 per cent.
Rural consumers are believed to be somewhat more conservative and tradition-
bound than their urban counterpart. However, the increasing levels of education,
over exposure to the media and the free modern city environment is influencing
their lifestyles
Four factors determine the demand in rural India:
1. access,
2. attitude,
3. awareness, and
4. affluence.
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Navnirman Institute of Management
In general, the following factors need to be taken care of:
Segmentation and targeting
Product planning
Pricing
Distribution
Promotion
The following variables seem to be relevant to most of the rural areas in India and
can be considered in determining the different market segments:
Geographic location
Population density
Gender, age, occupation, income levels
Socio-cultural considerations
Language and literacy level
Lifestyle, benefits sought
Nearness to an urban area/industrial town
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Navnirman Institute of Management
Product:-
Companies have to consider whether the existing successful products available in
the urban areas can be marketed in the rural markets without any modification. It is
advisable for companies to first determine what consumers in the rural markets
need and want, and then select products from the available ones.
For example the splendor which is success full in urban area after determine the
need for rural people they make the advertising in rural area, after that it become
great success full bike in urban area also.
Price:-
The rural consumer in general, is price sensitive, or more appropriately, value
conscious. The marketer will have to examine ways to make the product affordable
to a large number of consumers in the rural markets.
For example when the company has introduced the bike called splendor they put
the price less in comparison to urban are so that a middle class people can easily
afford it .
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Navnirman Institute of Management
Distribution:-
Distribution is critical to penetrate rural markets for success.
Those of us who hail from rural areas and others who have had the opportunity of
visiting rural areas in different parts of the country can very well appreciate the
challenges marketers face. The first constraint relates to aspects of physical
distribution.
The second set of difficulties relates to the organizing of an effective and efficient
distribution channel.
For example when the splendor is lunched in rural area it is available in all
showrooms in rural area. The service centers are also established in many rural
areas for the success of the bike.
Promotion:-
Rural marketing poses several problems with regard to various methods available
to the marketers for communicating effectively in different areas of the country.
Using symbolic association of products or events with deities, movie heroes, and
local folklore heroes etc. can have special significance in influencing consumer
attitudes, awareness, and product recall.
For example the company has made many advertisements in rural area and
hoardings and many endowments are also done in rural are. For the result splendor
is more purchased in rural area then urban area.
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Navnirman Institute of Management
Life cycle of Products
Impulse:-
Impulse is a new product to the market which is lunched recently when Hero and
Honda were splinted to different company. As it is new product so it is in the
introduction stage of life cycle.
The main strategy of the company to this good would be to make aggressive
advisement to aware to people. Increase the sales my marketing strategy.
CD Dawn:-
As CD Dawn is very old product to the company and it is in the decline stage of
product cycle.
For this product company has to make important decision is to make changes in the
product and relaunch it or to drop the product from their product line.
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Passion pro:-
Passion pro is changed product for the existing product of passion. When the
passion pro was in the decline stage the company had made changes in their
features and relunched it.
This product is now at the maturity stage in the production cycle.the company has
to hold on the product for that the company has to cut down the price of that
product as the price is high comparing to other 150cc bikes.
Hunk:-
This product has unique feature and also good product.In compitation to Hunk
many product is very good.so the company has to cut down the price which is
around 73000 rupees.
The product is in decline stage so the company has to make crucial decision
regarding that product.
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Navnirman Institute of Management
Karizma ZMR:-
This product is the new product which is been relunched after making the existing
product Karizma. Company had made the good decision for improving features of
existing product and makes it a totally new product.
The product is at growth stage in product life cycle. The company has to improve
their performance and had to increase the sales of the product.
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