A

SUMMER INTERINING PROJECT

On

MARKETING STRATEGIES OF HERO MOTO CORP

For the fulfillment of the requirement for the award of the degree
of
MASTER OF BUSINESS MANAGEMENT
(2017-2019)
DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY

Submitted to: Submitted by:

Dr. Mukesh Tomar Rajabul Khan
Roll No. 1721670065
MBA 2017-19

IIMT GROUP OF COLLEGES, GREATER NOIDA

(Affiliated to Dr.APJ ABDUL KALAM TECHNICAL UNIVESITY and Approved by AICTE)

1
 DECLARATION

I hereby declare that this Summer Training Project Report “MARKETING STRATEGIES OF HERO

MOTO CORP” is my own work, to the best of my knowledge and belief. It contains no material

previously published or written by another person nor material which to a substantial extent has been

accepted for the award of any other degree or diploma of any other institute, except where due

acknowledgement has been made in the text.

Name – Rajabul Khan

Date: __/__/__

2
 ACKNOWLEDGEMENT

Words are only representations of our regards and gratitude that we have towards our actions and their

inherent associations. As a matter of fact, without co-operation, no thought could be coined into real action.

Consistent motivation and invaluable support throughout any project is an issue that cannot quantitatively

measured. These acknowledgements are only a fraction of regards towards their gestures.

Our sincere thanks to Dr. Mukesh Tomar I express our deep sense of gratitude to Sir who has been a source

of inspiration throughout the course of this work with his inestimable advice and moral encouragement. I

have given an immense support throughout the course of the Project and attached to this Project directly or

Indirectly.

3
 PREFACE

If we want to go global in the world market then we must know the trend of the market, what features

must be there in the product so that it should get popularity among the masses and also should know

about competitor’s position in every field.

The objective of survey is to know the strategy of Hero Moto Corp in the world market and we must

know what should be the price range and what types of marketing should be done so that it gets familiar

with every type of person. So needs and objectives of the market survey is very important to get a good

market share , stand in the market and to survive the business in the present competitive world where

there is a trend of cutthroat competition.

Hero Moto Corp is a leading company in bikes sector. Knowing the comparative position of a brand vis-

à-vis its competitor’s is an essential thing as well as product is essential for deciding appropriate

marketing strategies for any company.

4
 TABLE OF CONTENTS

Sl.No. Topic Pages. No

1. INTRODUCTION

2. LITERATURE REVIEW

3. RESEARCH METHODOLOGY

4. DATA ANALYSIS AND INTERPRETATION

5. CONCLUSION AND RECOMMENDATIONS

6. BIBLIOGRAPHY

7. ANNEXURE

5
 Chapter-1

Introduction

6
 INTRODUCTION

The Indian Two Wheeler Industry

The Indian two wheeler sector contributes the largest volumes amongst all the segments in automobile

Industry. Though the segment can be broadly categorized in to 3-sub segments viz; scooters, motorcycles

and mopeds; some categories introduced in the market are a combination of two or more segments e.g.

scooter and step through. The market primarily comprises five players in the two wheeler segment with

most of the companies having foreign collaborations with well known Japanese firms earlier. But with

most of the companies now planning 100% subsidiaries in India.

In the last four to five years, the two-wheeler market has witnessed a market shift towards motor cycles at

the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to with stand the

bad road conditions. In the process of the share of motor cycle segment has grown from 48% to 58%, the

share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19%

to 17% during the year 2009-10. All new vehicles are a now being replaced by 4 stock motorcycles.

Reduced excise duties and fierce competition has led to a fall in prices of certain models.

Hero, a name synonymous with two wheelers in India, began its journey around four decades ago.

Starting as a manufacturer of by cycle components, hero has today grown into a multiunit, multi-product,

geographically diversified group of companies.

The hero group began with simple Philosophy: to provide excellent transportation to the common man,

at a price he could easily afford. Even today the dream providing the total satisfaction is all its sphere of

activity. To consumers, in excellent products at an affordable price; a thorough understanding the fast

changing consumer understanding the fast changing consumer behaviour, new market segment and

opportunities, and marketing mix sensitive changing customer needs from the core of Hero’s marketing

strategy and philosophy.

7
Hero Moto Corp. is one of the leading companies in the two wheeler Industry. At present, it is segment

with around 47% the market share during financial yr. 2000-01. The company ahs emerged one of the

most of successful players, much ahead of it competitors by it superior and reliable product quality

complemented with excellent marketing techniques.

Hero Moto Corp has been an early entrant in the 4-stroke segment of the two wheeler industry. With a

right mix of product styling and pricing the company has graped the 4-stoke market as compared to

Bajaj Auto and TVS.

TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent as a low cost

transportation and provide a tremendous potential is all parts of India. However the company is likely to

face threat Bajaj Auto Ltd (BAL) which continued its price based competitions and Hero Moto Corp

cycle and Scooter Ltd. a new entrants in the 2 wheeler market.

In fact the company has achieved excelled the Industry growth rates by a huge margin. From April to

December 2008 while the motor cycle industry sales were upto 38.68% TVS motor’s sales surged by a

whooping 73.6% sat more importantly it is the success of its model Victor.

Baja Auto has continued with its impressive performance witnessing significant growth is the motor

cycle and three wheeler segments. Based on the performance fill data one can expect the company to

meet it excellence by FY09.

Hero Moto Corp is the largest player is the motorcycle segment. Focused on contemporary design and

style, the company has a compare leusine ranges bikes viz;

Pleasure

Duet

Maestro

Maestro edge

HF deluxe

Splendor

8
CBZ

Passion

Karizma ZMR

Xtreme Sport

Two stroke Max Range – On the way out

The company is currently looking forward to phase out its two stroke Max range, which is perceived to

be less fuel efficient with a new four stroke range. Two new

.
Strong focus on R&D
The company has put in place a strong R & D team consisting 400 engineers & is spending about 3% of

its turnover on R & D every year and has in the process setup a strong world class facility for product

design and development. The company applied for 16 patents & published five technical research papers

in international conference. Modified research projects are carried in association with leading

international research labs and Indian institutes. R & D as percentage of sales in expected to increase

from 1.5% in FY o2 to 5.2% in FY 17.

Valuation
The company’s valuations are dependent on five events:
 Current four businesses grow at the normal industry growth rates.

 New product launches achieve their targets and are well accepted by the market.

 Three wheeler foray achieve targeted volume in the desired rates of return on capital employed.

 Quadricycle foray achieve the desired rate of return on the capital employed.

 Overall investment returns.

9
 HERO GENUINE PARTS

A delightful journey of our customers is at the heart of Hero MotoCorp's business strategy and to ensure

100% customer satisfaction, Hero MotoCorp Ltd. has a dedicated business unit for serving our customer's

need for genuine parts sold as

- HERO GENUINE PARTS popularly known as HGP.

Vision Statement

"No Customer has to ever wait for a Part that they NEED"

The objective of providing a never ending delightful experience to our customer is broadly characterised

by Hero MotoCorp’s persistent focus on Increasing our reach, setting industry benchmarks & ensuring

low cost of ownership.

Increasing our Reach

At Hero MotoCorp, we are creating an effective ecosystem to ensure one of the widest and deepest

visibilities across a multi-layered Indian market. To meet ever evolving customer aspirations, we are

consistently strengthening the entire network of customer touch points to respond to changing realities.

HGP are distributed through an extensive network of more than 95 parts distributors, 800 authorized

dealers and 1300 Authorised Service Centres across India and in over 35 countries through 6000 + touch

points across the world. to locate your nearest touch point. If you feel you share our passion to

continuously serve the customers,  to become a Parts Distributor and be a part of the Hero MotoCorp

Family.

Setting industry benchmarks

Hero Genuine Parts are the only certified parts for your Hero two-wheelers. They are engineered with

precision as a perfect fit for your bike to provide you with enhanced and unmatched performance. Every

part goes through a strenuous test of critical quality check points before becoming a Hero Genuine Part.

These parts are also now supplied through Global Parts Centre (GPC) in Neemrana.

10
GPC demonstrates the possibilities of the future . Blending state-of-the -art manufacturing facility with

cutting edge systems that not only facilitates supply chain processes but also provides a pleasant, healthy,

and beautiful work environment. Spread over 35 acres, GPC along with the equally imposing Hero

Garden Factory are an integral part of Hero Neemrana Complex in the state of Rajasthan, India. Based on

lean manufacturing systems, GPC is designed to have minimal manual intervention while significantly

enhancing productivity. This technological marvel is a new industrial benchmark in the auto sector. It is

equipped with automated storage and retrieval system (ASRS) and automated packaging and sorting

system apart from other new age concepts like Uni-Shuttle and Rail Guided Material movement systems

controlled by on-line tracking of parts, through a customised and unique Warehouse management system.

Following green building concept, Indian Green Building Council (IGBC) has accredited Garden Factory

as a platinum class manufacturing facility.

Low Cost of Ownership

Hero MotoCorp is committed to not only enhancing the customer experience through its products ,parts

and services but is also focused on reducing the total cost of ownership of a 2 wheeler .The pursuit thus

includes the costs of acquiring, installing, using, maintaining and replacing a product. To fulfil this very

objective, the entire HGP portfolio despite its highest quality standards is priced in an affordable manner

to lower the parts replacement cost of our customers.

11
 HERO JOYRIDE

Are you ready for a joyride?

Hero MotoCorp is committed to providing you with a joyful riding experience through Value for

Money initiatives. In pursuit of this objective, we already incorporate a 5 Year Warranty, 5 Free

Services, the Hero GoodLife Programme, and One-Stop Insurance solutions, all of which are available

through a vast array of networks; more than 6000 service outlets Pan-India.

To make your journey even more enjoyable, we have launched yet another first-of-its-kind service – The

Hero Joyride Program. Joyride is a Pan-India Smart Card based Annual Maintenance Package for all

Hero vehicles that is offered by Hero Authorised Service Centres.

The programme will enable you to meet your vehicle’s servicing needs with ease.

As a member of this annual maintenance package, you will enjoy a host of benefits and savings when

getting your two-wheeler serviced.

Key Features of Joyride

1.4periodic maintenances at authorized workshops for optimum vehicle performance*

2.Savings of up to 30%* on service labour cost

3.5%* off on engine oil

4Labour discount of 10%* on additional jobs

5Free minor jobs*

6Special invitations to all free check-up camps

7. Enhanced resale value of the vehicle

About We Care

At Hero MotoCorp, the principles of CSR are integral to the way we conduct our business. We believe in

'Manufacturing Happiness' through our various factories, where man, machine and nature work together

in harmony to minimize environmental impact and develop a healthy ecosystem. Our efforts focus on

12
activities that enhance environmental capital, support rural development and education, facilitate

healthcare, create sustainable livelihoods and promote sports and road safety awareness. We Care is our

CSR Umbrella, under which we have four flagship programmes – Happy Earth, Ride Safe India, Hamari

Pari and Educate to Empower, that are aimed at fulfilling the CSR vision to have a Greener, Safer and

Equitable world.

CSR VISION

To have a Greener, Safer and Equitable World.

Greener

Environment Sustainability, Sanitation & Hygiene Programs aimed at creating a Greener and Cleaner

World.

Safer

A Road Safety initiative that aims to make Indian Roads safer by spreading awareness about traffic rules

and regulations.

13
Equitable

Supporting Girl Child and School Student Education programs with high focus on Social and Community

Development.

14
 COMPANY PROFILE

DON'T DREAM IF YOU CAN'T FULFILL YOUR DREAMS

Dr. Brijmohan Lall Munjal (1st July 1923 to 1st November 2015)

The founder and patriarch of the Hero Group was your classic first generation entrepreneur. He was 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.

15
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 MotoCorp. These relationships

have survived through generations - through bad times and good times" the patriarch now reminiscences.

Besides bonding with his vendors and dealers, Brijmohan was 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, only a few of his contemporaries have

understood the dynamics of technology better than Brijmohan Lall had. He could always visualize the

applicability of technology before others could. For example, in the 1980s, when all two-wheeler

companies in India opted for two-stroke engine technology, Brijmohan preferred a four-stroke engine - a

technology that dramatically increased fuel efficiency and reduced maintenance costs. This technology

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

16
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 was a special place in his heart for Ludhiana, the city where he took roots. Today, Ludhiana is a

modern, bustling city, but Brijmohan had 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-for-profit Dayanand Medical College and Hospital-an institute now rated as

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

In and around Dharuhera, near the first Hero MotoCorp plant, Brijmohan and his family have left their

stamp of philanthropy. The Raman Kant Munjal Foundation - which Brijmohan set up in memory of his

eldest son, today runs a higher secondary school and a very modern and well-equipped 100-bed hospital

at Dharuhera. The group has also adopted numerous villages and provides education, vocational training,

drinking water, roads, streetlights and sewerage.

Fill it. Shut it. Forget it

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

the Hero Moto Corp Company of Japan, is today the leading manufacturer of India's largest selling

motorcycle. Coming into existence on January 19, 1984. Hero Moto Corp gave India nothing less than a

revolution on two-wheels made even more famous by the 'Fill it - Shut it - Forget it' campaign. Driven by

the trust of over 30 lakh customers, the Hero Moto Corp product range today commands as much as 47%

17
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.

In fact, every second bike sold in India today is a Hero Moto Corp ! Customer satisfaction, a high quality

product, the strength of Hero technology and the Hero group's dynamism have helped HML scale new

frontiers and exceed limits.

In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "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."

18
Chairman

Late Dr. Brijmohan Lall Munjal

(1st July 1923 to 1st November 2015)

 We must give back to the society

from whose resources we generate wealth.

19
 MILESTONE

Hero Moto Corp is the world no. 1 for the 5th year in a row

PROMINENT AWARDS TO THE COMPANY

 YEAR- AWARDS & RECOGNITIINS

2016
Overdrive - Scooter of the Year - Hero Maestro Edge

Overdrive - 'Viewers' Choice Scooter of the Year - Hero Maestro Edge

Overdrive - Manufacturer of the Year (Two-wheeler) Award - Hero

MotoCorp

''Hero GoodLife'' has been declared as the winner in the Category "Best
Loyalty Program in Automobile Sector"

TIME India Awards - Manufacturing Innovator of the Year Award

2014
Motorbeam - Bike Manufacturer of the year

Zigwheels - Entry-Level Bike of the year: Hero Splendor iSmart

20
2013
Green Pioneer Award – 2013

"Business Leader of the Year" Award by Hon'ble President of India, Shri.

Pranab Mukherjee, at the AlMA Managing India Awards 2013 on April
11, 2013 (Conferred on Mr. Pawan Munjal)

"Business Leader of the Year" Award in the Auto (Two Wheelers)

category by Deputy Chairman of the Planning Commission Mr. Montek
Singh Ahluwalia, at the NDTV Business Leadership Awards 2013
(Conferred on Mr. Pawan Munjal)

2012
Business Leader in Automobiles (two-wheelers) at the NDTV Profit
Business Leadership Awards 2012 (Conferred upon Mr. Pawan n Munjal)

Best value for Money Bike Maker and Best Advertising in Two Wheelers
Category at the Auto India Best Brand Awards 2012

Digital Advertiser of the year at the Indian Digital Media Awards (IDMA)
2012

Three awards (Launch Event of the year, Rural Engagement Programme

and Live Patron Award for Marketing Excellence) at the WOW Awards
organised by Event FAQs

Advertiser of the year 2012 by Indian Digital Media Awards 2012

Innovation in Loyalty Marketing Award (Initiative: Hero GoodLife Utsav)

21
by Colloquy Loyalty Awards

TPM Excellence Award 2012 by JIPM (Japan Institute of Plant

Maintenance)

Best Learning & Development Award

Asias Third Best Employer Brand Award

ET Now Talent & HR Leadership Award

8th Recruiting and Staffing Best-in-Class Award

Global HR Excellence Award

India Human Capital Award by Human Capital

Business Technology Excellence Awards 2012

Business Technology Innovation Awards 2012

Top Green IT Enterprise Award

IT Transformers Award

Quality Circle Excellence Award at National QC Convention - 2012

22
2011
wo-wheeler Manufacturer of the Year award by Bike India magazine.

Adjudged the "Bike Manufacturer of the Year" at the Economic Times Zig
Wheels Car and Bike Awards

CNBC Awaaz - Storyboard special commendation for "Effective

rebranding of a new corporate entity" by CNBC Awaaz Consumer Awards

"Most Recommended Two-Wheeler Brand of the Year" award by CNBC

Awaaz Consumer Awards

Colloquy Loyalty Awards "Innovation in Loyalty Marketing International

2011" for Hero GoodLife

"Best Activity Generating Short or Long-Term Brand Loyalty" by the

Promotion Marketing Award of Asia Order of Merit for Hero GoodLife

Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand

Equity "Most Trusted Brand" 2011 survey

'Innovator of the Year' NDTV Profit Business Leadership Awards

2010
Rated as Top Indian Company in Automobile - Two Wheelers sector by
Dun & Bradstreet - Rolta Corporate Awards 2009

23
 Most Preferred Brand of Two-Wheelers" award at the CNBC Awaaz
Consumer Awards.

Adjudged at top of the two-wheeler category in the Brand Equity Most

Trusted Brands 2010 Survey.

Ranked No. 3 Most Trusted Brand across categories amongst Young Adult
Males

Company of the Year awarded by Economic Times Awards for Corporate

Excellence 2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010

Two-wheeler Manufacturer of the Year

Car and Bike Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

2009
'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike
Awards 2009 and Passion Pro adjudged as Car and Bike Viewers' Choice
two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector bythe

Dun & Bradstreet-Rolta Corporate Awards

24
  

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles'
category

2008 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:
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 treme
"bike of the year" - cbz x-treme (up to 150 cc category)
"bike technology of the year" - glamout pgm fi
"auto tech of the year" - glamout 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 WAL LSTREET JOURNAL
ASIA (TOP INDIAN TWO WHEELER COMPANY)

ONE OF THE 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)

25
 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 Moto Corp 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

26
 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 Moto Corp. 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 Moto Corp.

27
KEY POLICIES

 Institutionalize resource conservation in the areas of oil, water, electrical energy, paints and

chemicals.

Enhance environmental awareness of our employees A company that believes in maintaining ecological

standards along with business standards.

"We must do something for the community from whose land we generate our wealth." - Chairman

Dr.Brijmohan Lall Munjal.

At Hero MotoCorp, our goal isn't limited to business but encompasses the broader spectrum of serving

humanity through social initiatives. Hero MotoCorp takes a stand as a socially responsible enterprise

respectful of its environment.

Hero MotoCorp has been strongly devoted not only to environmental conservation programs but also

expresses the increasingly inseparable balance between economic concerns, environmental and social

issues faced by business. A business must not grow at the expense of mankind but must serve humankind

at large.

Environment Policy
We at Hero MotoCorp have been committed to demonstrate excellence in our environmental

performance on a continuous basis, as an intrinsic element of our corporate philosophy

To achieve this we commit ourselves to:

28
 Integrate environmental attributes and cleaner production in all our business processes and

practices with specific consideration to substitution of hazardous chemicals and strengthening 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).

 and dealers / vendors, while promoting their involvement in ensuring sound environmental

management.

Quality Policy

Excellence in quality is the core value of Hero MotoCorp 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.

 Continuous improvement in our total quality management systems.

 Teamwork and responsibility.

29
Safety Policy
We believe that 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.

 Promoting safety and health awareness amongst employees, suppliers and contractors.

 Continuous improvements in safety performance through precautions be sides participation and

training of employees.

 Ensuring compliance with all applicable legislative requirements.

 Empowering employees to ensure safety in their respective work places.

Vigil Mechanism / Whistle Blower Policy

Hero MotoCorp Limited (hereafter referred to as “HMCL” or “Company” in this document) believes in

promoting a fair, transparent, ethical and professional work environment. While the HMCL code of

conduct defines the expectations from employees in terms of their integrity and professional conduct, the

vigil mechanism defines the mechanism for reporting deviations from the standards defined in the code.

30
Remuneration Policy

The remuneration policy of the Directors has been designed to keep pace with the business environment

and market linked positioning. The Remuneration & Nomination Committee determines and

recommends to the Board the compensation payable to Directors. Remuneration for the Executive

Directors consists of a fixed component and a variable component linked to the long term vision, medium

term goals and annual business plans.

Related Party Transactions Policy

Hero MotoCorp Ltd. (hereinafter referred to as HMCL or the company) recognizes that Related Party

Transactions can present potential or actual conflicts of interest and may raise questions about whether

such transactions are consistent with the Company and its shareholders’ best interests and in compliance

to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement.

31
Corporate Social Responsibility Policy

The Board of Directors (the "Board") of Hero MotoCorp Limited (the “Company”) has adopted the

following policy and procedures with regard to Corporate Social Responsibility. The Board may review

and amend this policy from time to time subject to the recommendations of Corporate Social

Responsibility Committee.

Code of practices and procedures of fair disclosure of unpublished price sensitive

information

Code of practices and procedures of fair disclosure of unpublished price sensitive information

[Pursuant to Regulation 8(1) of SEBI (Prohibition of Insider Trading) Regulations, 2015]

[As approved by the Board of Directors of the Company at its Meeting held on May 7, 2015 and

applicable from May 15, 2015]

32
Policy On Material Subsidiaries

The Board of Directors (the "Board") of Hero MotoCorp Limited (the “Company”) has adopted the

following policy and procedures with regard to determination of Material Subsidiaries. The Board may

review and amend this policy from time to time.

Policy for Preservation of Documents & Archival

This Policy aims to preserve Documents /Records maintained by the Company either in Physical Mode

or Electronic Mode (hereinafter referred to as “the Documents”). This Policy has been formulated in

accordance with the Regulation 9 of the Securities and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015 (Listing Regulations). The Policy shall come into effect

from December 1, 2015.

33
Policy on Disclosure of Material Events by the Listed Entity

The Policy aims for disclosure of important and material events of the Company to the Stock

Exchange(s), where the equity shares of the Company are listed, to stakeholders in compliance with the

provisions of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015 (hereinafter referred to as the “Listing Regulations”) and SEBI circular no. CIR/CFD/CMD/4/2015

dated September 9, 2015 (hereinafter referred to as the “SEBI circular”). The Policy shall come into

effect from December 1, 2015.

Dividend Distribution Policy

With respect to apportioning a share of profit to its shareholders, the Company endeavours to be fair and

consistent with its strategy, approach and decision. The management draws the conclusion of distributing

dividends after taking into accountant multitude of legal and financial parameters including long-term

earning capabilities, growth prospects, opportunity costs, applicable laws and statutory covenants.

34
35
Vision

The story of Hero Honda began with a simple vision - the vision 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.

of a mobile and an empowered India, powered by its two wheelers. 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.

Mission

Hero Moto Corp'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.

MAIN OBJECTIVE OF COMPANY

Through the company has wide list goals to be achieved but the major objective of the company has to
achieve areas follows:-
1. To provide right product to right people at right time.
2. Price should be reasonable; by this every level of person can afford the product.
3. To maximize the share holder’s value by customer value enhancement.
4. Changes should be according to prospective customer
5. To provide delivery of standard product.
6. To provide value for money to there consumers

36
 SWOT ANALYSIS: HERO

STRENGTH
 Technological support from Hero Moto
Corp.
 The company has a deeply penetrated
dealer network (640 including service
station)
 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, CD100, CBZ, etc.(Splendor
is world’s largest selling motorcycle)
OPPORTUNITY
 The motorcycle segment is growing at  The technical collaboration with Hero
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 from 4-stroke
bikes to 2-stroke bikes. This again
provides an excellent opportunity to
Hero Moto Corp to leverage its market
share and market leadership for  Threats from Chinese companies which
sustained profitability.
 Weak competition in 125 cc & 200(+) The company has plans to foray into the
cc segment
WEAKNESS
 Hero Moto Corp depends on Hero for
new products and this is a big weakness
considering it from the post 2005 point
of view. The reason being that the
technological tie-up between Hero
Moto Corp and Hero Moto Corp will
cease to exist.
 Exports has never grown beyond 4%
 The company doesn't have a product
catering to Rs. 25,000 - Rs. 30,000
segment.
 The company imports about 31% of its
spares requirements. This makes the
company vulnerable to the import
policies of the government. It also
exposes them to the exchange rate risk.
THREATS
is valid only till 2005 and this is a
serious threat as they have been
dependant on Hero for technology.
Also Hero has set up its 100%
subsidiary in India, which shall start
producing motorcycles from 2004. This
will further increase the competition.
are going to launce Hi-Tech and Low
cost products
scooter segment, which can also be a major
threat for the future prospects of the
company.

Objectives of the study

• To understand the marketing and advertisement strategies of Hero Motor Corp Limited.

37
 • To Analyse their strategies and its effect on the corporate profile of the company

• To compare the strategies of Hero Motor Corp Limited. With its competitors and to analyse its

strengths.

• To realize the role being played by advertisement and promotion on the marketing volume of the

company.

• To analyse the strength and weakness of marketing strategies Hero Motor Corp Limited.

• To understand the future trends in advertisement and marketing in automobile sector especially

motorbikes segment.

• To analyse the advertisement and marketing strategies of competitors.

COMPETITORS OF HERO MOTO CORP

BAJAJ

38
The Bajaj Group came into existence during the turmoil and the heady euphoria of India's freedom

struggle. Jamnalal Bajaj, founder of the Bajaj Group, was a confidante and disciple of Mahatma

Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication, resourcefulness and

determination to succeed which are characteristic of the Company today, are often traced back to its birth

during those long days of relentless devotion to a common cause.

Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the age of twenty-seven.

Putting the Nation before business, he devoted himself to the latter only after India achieved

independence in 1947. But when he did so, he put his heart and soul into it. Within a short while, he not

only consolidated the Group, but also diversified into various manufacturing activities, elevating the

Group to the status it enjoys till this day

Rahul Bajaj today heads the Group. He has been the Chief Executive Officer of Bajaj since 1968 and is

recognized as one of the most outstanding business leaders in India. As dynamic and ambitious as his

illustrious predecessors, he has been recognized for his achievements at various national and international

forums. Bajaj is currently India's largest two and three-wheeler manufacturer and one of the biggest in the

world. Bajaj has long left behind its annual turnover of Rs.72 million (1968), to currently register an

impressive figure of Rs.42.16 billion (US$ 936 million).

TVS- Ltd:

They have a vision of being a highly profitable and socially responsible, leading manufacturer of high

value, environmentally friendly, lifetime personal transportation products for customers in global markets

and to provide fulfillment and prosperity for employees, dealers and vendors

Yamaha
Yamaha Motor made its initial foray into India in 1985 as a joint-venture. In August 2001, it became a
100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an
agreement with YMC to become a joint-investor in India Yamaha Mot

39
IYM is highly customer-driven and has a country-wide network of over 2,200 customer touch-points
including 500 dealers. Presently, its product portfolio includes Sports models such as YZF-R15 version
2.0 (149 cc), YZF-R15S (149 cc); Blue-Core Technology enabled models such as FZ-S FI (Fuel-Injected,
149 cc), FZ FI (Fuel-Injected, 149 cc), Fazer FI (Fuel-Injected, 149 cc), SZ-RR version 2.0 (149 cc),
Saluto (125 cc), Saluto RX (110 cc), Fascino (113 cc), Cygnus Alpha (113 cc), Cygnus Ray Z (113 cc),
Cygnus Ray ZR (113 cc) as well as imported models comprising of MT-09 (847cc), VMAX (1,679 cc),
YZF-R1M (998 cc) and YZF-R1 (998 cc). or Private Limited (IYM).

40
 Chapter -2

LITERATURE REVIEW

41
 LITERATURE REVIEW

Marketing Strategy

A thorough understanding of the fast-changing Marketing Strategy, new market segments and product

opportunities along with sensitivity to changing customer needs, form the core of Hero's marketing

strategy and philosophy. At Hero we essentially have a completely customer-driven approach. A nation-

wide dealer network comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225 franchise

holders for motorcycles, ensures convenient access to the Group's products across the country.

With a deep sense of belonging to the Hero fraternity, the Group's dealer network has catalysed growth and

acted as a strong bridge between the customers and the Group. Conventionally, very few Indian bicycle

manufacturers were interested in exports. However, the Hero Group's foray into the overseas markets

pioneered Indian exports in the bicycle segment as early as 1963. It was a move prompted primarily by the

need to be attuned to the global marketplace.

While initial exports were restricted to Africa and the Middle East, today more than 50 percent of the

Group's bicycle exports meet the demands of sophisticated markets in Europe and America. This is

primarily because of appropriate product development and excellent quality that Hero offers.

The Group has undertaken a steady up gradation of technologies and there has been diversifications and

setting up of newer establishments to meet stringent international standards. At the core of it all is a

customer-centric scheme of policies and production ... and the bottom line is to "Add Value while

Engineering Satisfaction."

PARTNERSHIPS, ALLIANCES AND JOINT VENTURES

 Hero's quest for a low-budget, fuel-efficient and environment-friendly two-wheeler led Hero Moto

Corp to enter into a Technical Collaboration with Stair Daimler Punch of Austria in 1987 for the

manufacture of the 65cc, Porsche-design mini-motorcycles.

42
 Munjal Showa Limited was formed in Technical and Financial Collaboration with Showa

Corporation, Japan, to design, develop and manufacture of front forks, shock absorbers, struts and gas

struts.

 Sunbeam Auto Limited has set-up a state of the art piston manufacturing facility in technical

collaboration with M/S Hero Foundry Company Limited of Japan, the pioneers in the world for

manufacturing high-strength lightweight pistons used in light, powerful fuel-efficient engines Munjal

Auto Industries Limited has a joint venture with the State-owned Gujarat Industrial Investment

Corporation, to cater to the needs of the overseas market.

 Hero Cycles CR Division was set up in consultation with MECON, Asia's largest engineering

consultants and in Technical Collaboration with Wean United, USA.

 Hero Cycles Cold Rolling Division has also entered into a technical collaboration with Kawasaki Steel

Corporation, Japan for the improvement of production yield, elimination of defects, reduction of

customer returns and enhancement of maintenance operations against certain predetermined targets.

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. Conformance to quality at Hero

begins on the shop floor. Every worker ensures at each stage of manufacturing that any of the faulty

products are not allowed to go through further manufacturing and distribution cycles.

Today quality is ensured from steel processing to the finished product. Each component goes through

numerous tests at the stages of design, raw material procurement and, of course, during the manufacturing

process.

43
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.

Nevertheless, in this race to acquire the most modern techniques and technologies and to collaborate with

the most advanced players in the market, the core competence continues to be derived from the Group's

philosophy - "To Engineer Satisfaction."

44
 MARKETING MIX STRATEGY

Product Mix

Product Variety Quality Design Brand Name Warranties Service Features

Price Mix

List Price Discount Allowances Payments Periods

Credit Terms
Place Mix

Channels Coverage Assortments Inventory Transport

Promotion Mix

Sales Promotion Advertising Public Relations Direct Marketing

45
 MARKETING MIX: -

Standardised Marketing Mix:

An international marketing strategy for using basically the same product, advertising, distribution

channels & other elements of the marketing mix in all the countries of company’s international market.

Adapted Marketing Mix:

An international marketing strategy for adjusting the marketing mix elements to each international target

market, bearing more costs but hoping for a larger market share & return.

International Scenario

A two-wheeler is used as a personal/family vehicle or a goods carrier in the enveloping countries, whereas

it is confined to sports/racing (heavy motorcycles) or short istance shopping (mopeds) in developed

countries.

The world two-wheeler market is dominated by Japan. Japanese manufacturers account for around 65%

of the total two-wheeler production in the world. However, production within Japan has been declining

due to lower domestic demand and shift in manufacturing base outside the country. Japan is also the

world's largest exporter of two-wheelers in the world controlling around 75% of the world trade. Its

major markets are China, USA and Europe. In terms of player positions, Hero Moto Corp Corporation,

Yamaha Motors and Suzuki Motors Corporation share the top three slots in the world two-wheeler

market. The table below shows the production and sales figures of motorcycles and scooters in Japan

during the past decade More than 50% of the production in Japan is exported out of the country. This

scenario contrasts directly with the Indian scenario. In India, only about 15% of the production in FY11

were exported

The Asian continent is the largest user of two-wheelers in the world. This is due to poor road

infrastructure and low per capita income, restrictive policy on car industry.

46
The technology for two-wheelers is not as well developed as for car industry. This is due to oligopoly

between top five players in the segment, compared to thirty manufacturers in the car industry.

47
 EXPORTS

HERO CYCLES

HERO MOTO CORP

HERO BIKES
HERO CORPORATE SERVICES (Herosoft, Hero
Mindmine, Hero serve IT)
MUNJAL SHOWA LIMITED

48
 PRODUCT STRATEGIES OF HERO MOTO CORP
Hero Hero shifted its focus from catering to the fuel efficient conscious consumer to try and occupy other

segments of the motorbike market and therefore the new product launches from Hero Moto Corp in the last

three year have been in this direction. The company has also upgraded some of its bikes to stay in contention

and to meet Euro emission norms. The new underlining theme for the company “One for everyone” has led to

the launching of new products, which are as follows:

Street Smart: Hero Moto Corp introduced its Street Smart in 1997. The company who were more inclined

towards the scooters and who thought that the scooters were more safer than the motorcycles, thus Hero Moto

Corp decided to launch the Street Smart. The bike was built in such a way that it resembled more like a

scooters, than a motorcycle, but actually it is a motorbike. I.e. it is a “hybrid”

Product Description (HERO MOTO CORP Ltd.)

Hero Moto Corp has launched the following motorbikes in the Indian market.

 HERO DUET

 HERO HF DELUX

 HERO MEASTRO

 HERO PLEASURE

 HERO Splendor

 HERO ISmart

 HERO CBZ

 HERO Passion

Hero Hero shifted its focus from catering to the fuel efficient conscious consumer to try and

occupy other segments of the motorbike market and therefore the new product launches from Hero Moto

Corp in the last three year have been in this direction. The company has also upgraded some of its bikes

to stay in contention and to meet Euro emission norms. The new underlining theme for the company

“One for everyone” has led to the launching of new products With the launch of new motorbikes and

49
PRICING STRATEGIES OF HERO MOTO CORP
The company has a policy to price its product very competitively. In today’s world, one cannot has a

skimming pricing says Mr. Tapan, marketing manager, Hero Moto Corp. Necessarily the pricing policy is

completely a blend of two strategies i.e. Penetration and Skimming. It has been the company’s policy to

provide the customers with value for money-give more for less. We are the only company in the two

wheeler segment that is in the process of passing on the whole benefit of cost advantage achieved as a

result of the increased localization levels of upto 60% to the customers.

We are in the process of keeping our product increasing popular and affordable. The company keeps

telling its customers to think about Quality rather than price. Further if one talks about the changes in the

price in the last three years, the prices have never been changed except the budgets except once in APRIL

2015,when the company started off with their “celebration offer”, and thus decided to sanctioned a

discount and curtail on every Model Rs 1001\-. The company is surely in a business of delivering quality

rather than price. For instance the Boxer, which is of only 29,990 and is the cheapest bike of the industry.

The company gives importance to the quality rather than cheap products.

Well Hero Moto Corp has bikes at different price point but there is one common thing that is they are

priced at a premium of INR 2000- 3000 from the competitors and it seems their strategy is working fine

with the target customers as it is the largest seller of bikes in the Indian market with a market share of 48

% .Customers are redy to shell out the extra money because they believe and its fact that the fuel

efficiency of the bikes is much better than its competitors the different price points for Hero Motors

Limited are :

NAME PRICE

Splendor --------------- 51,000

Passion ---------------- 55,000

50
Cbz--------------------- 60,000-75,000

DUET ----------------- 47000-49000

PLEASURE----------- 46000

MAESTRO------------ 48000

SUPER SPLENDOR- 57000

HF DELUX----------- 47000

PROMOTIONAL STRATEGIES OF HERO MOTO CORP

Hero Moto Corp rides safe

Hero Moto Corp's `Ride Safe and Good Rider' campaign is aimed at communicating the philosophy of

delivering safe products and promoting good driving for the overall safety of the Hero Moto Corp

customer. Created by McCann Erickson, the ad-- Hero Moto Corp cares for your safety--invited all Hero

Moto Corp owners to attend the Ride Safe programme on October 27, 2016 at Delhi's India Gate lawns.

This was the first phase of the programme, where three instructors from Japan demonstrated techniques

of right driving. In the second phase, Hero Moto Corp will communicate the launch of the 4S concept

(sales, service, spare parts and safety) at Hero Moto Corp dealerships. The focus of the third phase will

be to promote the launch of the Hero Moto Corp Safety Riding Promotion School, which will have riding

simulators and safety riding tracks

Hero will take the riding programme-- where trained personnel will give riding tips to bike owners-- to

over 100 dealerships across 90 towns.

Promotion in this sector cannot be like that in the Fast Moving Auto pats (Automobile) sector. The

promotions in this sector are like 0% finance schemes and other sort of things. The company takes the

services of many good and reputed advertising agencies like Reddifuusion, Lintas, Sachi & Sachi and

others.

51
 The company has also signed a kind of agreement with two celebrities just now to be their brand

ambassadors. Hero Moto Corp, a leading manufacturer of motorcycles, has roped in film actor Hrithik

Roshan and captain of Indian Cricket team Sourav Ganguly as its brand ambassadors for three years till

2003.

They would endorse the company products, attend corporate and brand events and help promote its "we

care" campaign comprising safety riding, environment, and friendliness.

Hrithik and Ganguly said they were glad to be associated with Hero Moto Corp. Hero has embarked upon

an ambitious project to achieve sale of one million bikes this year with a market share of 47 per cent. The

turnover would be in excess of Rs. 3000 crore. In October alone, 1,12,000 motorcycles have been sold,

Compared to 66,063 units in the corresponding period last year, the increase in sales is a phenomenal 69

per cent. Cumulative sales jumped up by 41.58 per cent to 5.72 lakhs units during April-October as

against 4.04 lakh units in the same period last year.

At Hero Moto Corp , our goal is not only to sell the customer a bike, but also to help him at every step of

the way in making the correct riding decisions. Assisting him in making the right judgments on the road,

and helping him to choose the right helmet and other riding equipment

And as bike handling requires know-how, skill, and rigorous mental conditioning, we have put together

certain safety tips and suggestions that will enhance the riding comfort. Last but not the least, it is always

important to remember - a good rider is a safe rider.

Hero Moto Corp is enhancing the Advertising &Promotion budget by around 35 per cent from Rs 41

crore in 1999-2000. Apart from concentrating on mainstream Splendor-- the world's largest selling bike--

and upscale CBZ motorcycles, Hero Moto Corp has identified ``soft areas'' like services and spares parts

for the purpose of intense communication. The creative account of Hero Moto Corp rest with big names

like Hindustan Thompson Association, Lintas, Sachi and Sachi and so on. Hero Moto Corp is also

planning a major campaign to re-launch the restyled step-thru Street Smart. While customer references--

and not media strategy-- are expected to support the CD brand sales, Hero Moto Corp will look at social

52
areas -- like civic issues, association with Non Government Organizations, contribution to greener

causes-- for corporate communications.

The corporate campaign will be largely complemented by on-ground initiatives under the umbrella brand

of ``We Care'', incorporating activities in the arena of community services, safety and services

programmes, tree-plantations and environmental-friendly projects.

In line with Hero's worldwide, safety riding programme, this fiscal Hero Moto Corp Motors Limited will

take the riding programme-- where trained personnel will give riding tips to bike owners

SPORTS & ENTERTAINMENT

In sports promotions, Hero Moto Corp will stick to cricket and golf (it will continue with Hero-Hero

Masters Golf).

Moreover, after a successful association with movies-- last year it signed Pyar Mein Kabhi Kabhi starring

Dino M and Twinkle-- Hero Moto Corp is in the process of identifying title sponsorships of youth-centric

movies. Says Sobti, “In terms of media exposure, we are looking at sports, movies and news. Niche

channels are also worth putting your money on.'' For the CBZ, this year it is planning to run commercials

in youth channels like MTV;Discovery and Star Movies.

In sports promotions, Hero Moto Corp will stick to cricket, it has signed a three-year contract for Hero-

Hero-Salve Challenger Trophy) and golf (it will continue with Hero-Hero Masters Golf). Moreover, after

a successful association with movies-- last year it signed Pyar Mein Kabhi Kabhi starring Dino M and

Twinkle-- Hero Moto Corp is in the process of identifying title sponsorships of youth-centric movies. In

terms of media exposure, the company is looking at sports, movies, and news. For the CBZ Motorcycle,

this year it is planning to run commercials in youth channels like MTV; Discovery and Star Movies.

The Target: “Services will be a major differentiator,'' says Sobti. `The campaigns will highlight the

high level of services and automated facilities at our dealerships.'' Hero Moto Corp is expecting a 30-35

per cent growth in spare parts revenue, which accounted for Rs 100 crore in 1999-2000.In the new fiscal,

53
Hero Moto Corp is aiming to take the sales of Splendor from40,000 a month to 50,000 a month; CBZ

from 4,500 a month to 5,000; and a10-15 per cent growth in CD and CD-SS brands up from 25,000 a

month now. There-launched step-thru Street Smart is expected to account for around25,000-30,000 in the

first year.

Services will be and is the differentiator. The campaigns will highlight the high level of services and

automated facilities at the company’s dealerships. Hero Moto Corp is expecting a 30-35 per cent growth

in spare parts revenue, which accounted for Rs 100 crore in 1999-2000.In the new fiscal, Hero Moto

Corp is aiming to take the sales of Splendor from40, 000 a month to 50,000 a month; CBZ from 4,500 a

month to 5,000; and 10-15 per cent growth in CD 100 and CD100-SS brands up from 25,000 a month

now. Supporting all of the Hero Moto Corp's growth projections are amulet-pronged strategy including a

thrust on a customer relationship programme, major increase in advertising and promotion (A&P)

spending, expansion of dealership network, and a focus on organized consumer financing.

DEALERSHIP EXPANSION
Hero Moto Corp will add 25 more dealers and 50service stations to build a network of 575 dealership-

cum-service points(including 400 dealerships) across the country.

The level of investment in an automated Hero Moto Corp service station is expected to be around Rs 10

lakh, apart from land and building. “No dealer has any problem in expanding business,'' says Sobti.

“We've tied up with Citibank and Centurion to provide bill discounting through our dealers. ''Consumer

Finance: In order to focus on organised consumer financing, Hero tied up with Tata Finance a week ago.

This is Hero Moto Corp's second tie-up following Centurion, which is accounting for around 3,000 bikes

a month through 100 dealerships.

“We've got a good internal rate (based on IRM), which is standard across the country,'' says Sobti.

``These finance companies bring refreshingly customer-friendly focus to our organisation.''

With Tata Finance, Hero-Hero's reach will be extended to over 150dealerships.

54
Also, Tata Finance is expected to add 2,000 bikes a month. Presently, consume financing, including non-

organised financing, contributes around 20,000 Hero Moto Corp bikes a month. Gauging Consumer:

Hero Moto Corp is chalking out a customer relationship programme, which is expected to be established

in the next three years. “We're discussing with Result McCann,'' says Sobti.

The programme will initially attempt at building relationships with Hero Moto Corp's top three to five

lakh owners, out of its customer base of three million.

55
 SALES PROMOTIONS

Hero Moto Corp regularly has promotions running for its dealers as well as customers in order to ensure

that there is a interest among the target customers abut the company and its products. Normally Company

participates in road shows, Sponsors college festivals, promotes eco friendly initiatives, Have festive

Season offers, and sometimes price discounts to attract the attention of the people. These promotions are

targeted mainly on youngsters as they are the primary buyers of bikes.

The company launches financial schemes as Zero % finance schemes in collaboration with different

banks so that customers can pick bikes in easy installments. The effect of these promotions can be

understood from the fact that 35 % of bikes are sold through this medium.

INTRODUCTION OF MARKET RESEACH

Marketing is a restless, changing dynamic field, since 1920 many important and dramatic changes have

taken place in marketing. Thousands of new products, including those of entire new industries such as

automobiles, electronic and computers, textiles, footwear etc. have appeared on the market.

Though al these occur through a gradual procedure of change but pronounced shift in the orientation of

times from production to marketing moreover, the role of marketing itself has been changing. The

various crises of the 1970’s material and energy shortage, inflation, economic stagnation, high

unemployment, dying industries have forced the marketing executives to assume a wide range of

responsibilities that have grown in complexities.

Due to the many challenges offered by the environment, the companies executives are becoming more

driven in their strategy decision making for making sound marketing decisions in response to this

requirement of formalized means of acquiring many ways has reached a stage of maturity i.e, marketing

research.

Market research has become a great tool for these companies to get the feedback and formulate strategies

accordingly in today’s eager to know. What consumer perceives about various brands for the perfect

selection of target market. In an era where competitive pressures have make the cost of failure

56
prohibitive, research has become crucial in getting the market plan right. As the project was

“globalization of Hero Moto Corp” I found that the company is making it’s marketing mix strategies by

considering the consumer at the central point because, now a days, the consumer has become more aware

and is no more a novice. That’s why marketing research has become an important tool in the hand of

marketer to understand the versatile nature of ever changing consumer behavior as depicted by the

marketing research, as refined by American Marketing Association.

“Is the function which links the consumer, customer and public to the marketer through the information

used to identify and refined marketing opportunities and problems, generate, refine and evaluate

marketing actions: monitor marketing performance and improve understanding of marketing as a process.

Marketing research specifies the information required to address these issues designs the method for

collecting information managers and implements the data collection process, analysis the results and

communicates the finding and their implications.”

ADVERTISING

The advertising includes both print and television media. The company uses the services of Lintas, Sachi,

and Sachi but Hindustan Thompson Association deals main of the advertising. Besides of giving the

commercial advertising the company also releases the advertisement, which are of public interest and

especially the company releases the social advertising as to how to go about the safe driving. The

company keeps on sponsoring different Programmes and various kinds of games like the company every

year sponsors Golf Championship. c The company has also recently decided to increase their adverting

budget for the current year as they have to release more advertisements in public interest and the

company has to re-launch the Street Smart model once again which was a tremendous failure in the early

stager of its launch.

Sale Promotion-The company does sale promotion for both dealers and the customers. The company is

currently offering the promotion to their customers as they are offering a discount of 1001.This discount

is the company sanctioned discount and the dealers may also offer some kind of discount due to

57
competition to attract customers and to increase the sale figures. The company also offers a kind of

promotion to the dealers; The Company is having a slab system as a tool for promotion to the dealer.

Advertising & Promotion:

Hero Moto Corp is enhancing the A&P budget by around 35 per cent from Rs 41 crore in 2010-2011.

Apart from concentrating on mainstream Splendor-- the world's largest selling bike-- and upscale CBZ

motorcycles, Hero Moto Corp has identified ``soft areas'' like services and spares parts for the purpose of

intense communication.

While customer references-- and not media strategy-- are expected to support the CD brand sales, Hero

Moto Corp will look at social areas -- like civic issues, association with NGOs, contribution to greener

causes-- for corporate communications.

The corporate campaign will be largely complemented by on-ground initiatives under the umbrella brand

of ``We Care'', incorporating activities in the arena of community services, safety and services

programmes, tree-plantations and environmental-friendly projects.

In line with Hero's worldwide, safety riding programme, this fiscal Hero Moto Corp will take the riding

programme-- where trained personnel will give riding tips to bike owners-- to over 100 dealerships across

90 towns.

PERSONAL SELLING-

As a part of sales promotion, the company also does personal selling to the corporate sector. This is done

in case of institutional selling. In the beginning only the CSD canteens were included but now even Multi

National Companies also form a part of the institutional selling

Hero’s corporate week-The week in December 2016 was observed as the corporate week. This week was

observed in the year 2016to spread awareness among the corporate employees about the company and its

range of products. In this week various vendors participated as well as various dealers participated. This

platform was also used as making and building more cordial relations among the employees and the

dealers.

58
CHANNEL OF DISTRIBUTION IN HERO MOTO CORP

Hero Moto Corp continues to have the same policy of directly approaching the dealers. However the

company has made some changes in the dealership requirements. The company has now divided its into

three categories, A, B and C depending upon the status of the town. Hero Moto Corp has made some

regulations and its dealers are bound to fulfil specific requirements for their showroom and workshops in

terms of area. The company has also started focusing on the rural marketing such as Agartala (Tripura),

Tinsukia (Assam) and Bhagalpur (Bihar). The company has also increased the number of dealers from

350to 400.

Distribution Channels-

Hero Moto Corp has very strong Distribution channel in India. Hero Moto Corp distributions their

through Regional officer, Authorized dealers Etc.

59
HERO MOTO CORP IN INDIAN HAS 3500 AUTHORISED DEALER

Criteria for selection of distributions;

 Financial position to the distributors

 Goodwill

 Situation of show room

 Past record

 Experience

 Promotion

a) Sale – locating customers

Hero Moto Corp regularly has promotions running for its dealers as well as customers in order to ensure

that there is a interest among the target customers abut the company and its products. Normally Company

participates in road shows, Sponsors college festivals , promotes eco friendly initiatives ,Have festive

Season offers , and sometimes price discounts to attract the attention of the people . These promotions are

targeted mainly on youngsters as they are the primary buyers of bikes.

The company launches financial schemes as Zero % finance schemes in collaboration with different

banks so that customers can pick bikes in easy installments . The effect of these promotions can be

understood from the fact that 35 % of bikes are sold through this medium.

b) Qualifying customers

"We are happy with our financial performance. It gives immense joy to see this kind of results in the

25th year of our company. I wish to thank all our stakeholders – customers, associates, dealer friends,

ancillaries and also our joint venture partners Hero Moto Corp Co – for their continuous support."

Sales Performance

Hero Moto Corp reports leadership performance with 50 % net profit in q2, 15-16

60
defies industry trend with turnover (net sales & other operating income), at rs. 3202 crore; ebidta at

13.58 per cent

Aug’09 Aug ’10 fy 09-10 fy 15-16

• Total turnover (Net sales & Other Operating income)Rs 3202 crores, growth of 35.6 per cent

• Net profit after tax at Rs 306.30 crores, growth of 50 per cent

• EBIDTA margin for the quarter 13.58 per cent

• Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent

• Total sales for H1 stands at 18,66,349, growth of 19.7 per cent

• Over 55 per cent share in domestic motorcycle market

• Launches first-of-its kind music video to celebrate 25 years of Hero Moto Corp

New Delhi, October 21, 2008: Hero Moto Corp (HML), the world's largest two-wheeler company for

seven consecutive years, today firmly reiterated its undisputed leadership in the domestic two-wheeler

market with impressive bottom line growth for the second quarter (Q2) – July to September - of this

financial year (FY) 2008-09.

Even as the industry continued to face tough market conditions on account of uncertainty over interest

rates and overall credit squeeze, the company reported 50 per cent growth in profit after tax (PAT) at

Rs 306.30 crore for the second quarter. Hero Moto Corp's profit after tax in the corresponding period

last fiscal (July - Sept, 2010-11) stood at Rs 204.33 crore.

Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, a growth of 35.6 per cent

over Rs 2361 crore recorded in the corresponding period last fiscal. The company has recorded an

EBIDTA margin of 13.58 per cent in the quarter. The EBIDTA margin in the previous quarter (April -

June '08) was 12.20 per cent.

The strong financial performance is in line with the company's better-than-industry top line growth.

After posting a growth 11.38 per cent in the first quarter, the company kicked off the second quarter

with a 39.8 per cent growth in sales in the month of July, and followed up with 26.8 per cent growth in

61
August and 22.4 per cent in September. Hero Moto Corp consistently keeps growing its share in the

domestic motorcycle market, and currently enjoys over 55 per cent share.

Hero Moto Corp's cumulative sales for the second quarter (Q2) this FY stands at 9,72,095 units - a

growth of 28.5 per cent over Q2 last FY (2009-10). The cumulative sales for the first six months (H1)

stands at 18, 66,339 units of two-wheelers compared to 15, 59,486 units sold in H1 in the last FY –

reflecting a consistent 19.7 per cent growth in cumulative sales.

Dr. Brij Mohan Lall, Chairman, Hero Moto Corp, said "We are happy with our financial performance.

It gives immense joy to see this kind of results in the 25th year of our company. I wish to thank all our

stakeholders – customers, associates, dealer friends, ancillaries and also our joint venture partners Hero

Moto Corp Co – for their continuous support."

Mr. Pawan Munjal, MD & CEO, Hero Moto Corp., said "Our numbers speak for themselves. Even in

this volatile and competitive environment, our top line continues to outpace the industry growth, our

market share is at an all time high, and the financial balance sheet is a delight – all the factors which

form the hallmark of a resilient company with cutting-edge management. We will continue to keep

innovating – in bringing in technologically-superior products, in our network expansion, in brand

building, in our financial management, and in our communication."

"Going forward, we will have to keep a close watch on the commodity prices movement, and other

factors such as inflation, interest rate scenario and availability of retail finance. These factors will play

a crucial role in the industry growth in the subsequent quarters," he added.

Hero Moto Corp has already rolled out its festive season initiatives, with the launch of four new

models – the all-new "Passion Pro" and three refreshes of its existing models - new CBZ X-treme, a

self–start version of Splendor NXG and the refreshed Pleasure. During the coming months, the

company will further augment its product portfolio with new launches across segments.

62
Key Hero Moto Corp brands continue to drive strong volumes across segments - CD Deluxe in entry

segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and Hunk,

CBZ X-treme and Karizma in the premium segment.

Celebrating its 25th year, Hero Moto Corp released an innovative music video in the month of

September. Titled " Hero Moto Corp Dhak Dhak Go", and involving as many as eight brand

ambassadors of Hero Moto Corp, the music video has been receiving rave reviews.

Hero Moto Corp recently won two very coveted awards - "The Most preferred Brand of two-wheelers"

award at the recent CNBC Awaaz Consumer Awards 2010, and the "NDTV Profit Business Leadership

Award".

Hero Moto Corp closes calendar year 2007 with sales of over 33 lakh bikes

Hero Moto Corp consolidates market leadership with impressive growth of 15% in March’10

63
Hero Moto Corp Continues Growth Momentum With 9.5 Per Cent Increase in May Sales

Hero Moto Corp Continues To Consolidate Market Leadership With 27 Per Cent Growth In August

Sales

Hero Moto Corp Net Profit Zooms 31% To Rs 275 Crore In Q3 (Fy 2015-16)1)

Hero Moto Corp passes on excise duty cut benefit to customers

Hero Moto Corp posts record 6 lakh-plus units in retail sales in October 2015

Hero Moto Corp’s positive performance continues in Nov ’10

Hero Moto Corp’s September ’08 sales jump 22 per cent

Hero Moto Corp’s strong sales performance continues into 2015

Reports 13% growth in cumulative sales in apr-nov’2015

Hero Moto Corp closes calendar year 2007 with sales of over 33 lakh bikes

New Delhi, Tuesday, April 21, 2015: Recap of year 2013…

• Slew of launches across various segments this calendar year

• Multi-focal strategy leading to better-than-industry performance and gain in market share

• Doubled volume and share in the premium segment

• Consolidated over 50 per cent share in domestic motorcycle market

New Delhi, January 2, 2016: Hero Moto Corp (HML), the world’s largest two-wheeler manufacturer,

today reported cumulative sales of 33, 09,051 units of two-wheelers for the period January–December

2015. The company’s cumulative sales for the calendar year 2015 was 32, 53,229. This achievement is

significant in view of the prevailing slow down of the two wheeler industry.

For the month of December 2007, HML reported sales of 240,532 units of two-wheelers. The

company’s sales for the corresponding period last year were 252,462 units.

The better than industry performance of HML through 2015 has been possible due to the company’s

multi-focal strategy of bringing in new products across segments, supporting them with extensive 360

degrees communication, leveraging properties such as cricket and entertainment for brand building and

64
augmenting its distribution network. As a result, Hero Moto Corp’s share in the domestic motorcycle

market has grown to upward of 50 per cent.

Year 2013 saw Hero Moto Corp launch new models across segments. The company more than doubled

its volume and share in the premium segment this year, with the new all-muscle and macho Hunk, and

the sporty and stylish CBZ X-treme both doing very well.

New 100cc bike Splendor NXG, refreshed Pleasure, new Super Splendor, refreshed Passion Plus, were

other additions to Hero Moto Corp’s product portfolio in 2010. The company crossed the twenty

million cumulative sales mark this year and launched the special edition Splendor Plus to mark the

occasion. In the month of December, continuing with its engagement with youth, Hero Moto Corp

brought the legendary rock band Scorpions to India, for performances in Mumbai and Bangalore as part

of the band’s “Humanity World Tour 2009-10”. This came close on the hills of the very popular ‘Hero

Moto Corp Campus Rock Idols’, a nationwide contest of amateur rock bands that culminated into a

grand finale in Delhi in the first week of December.

Hero Moto Corp consolidates market leadership with impressive growth of 15% in March’13

For fy 2013-14, Hero Moto Corp overtakes previous fiscal’s sales tally, even as domestic motorcycle

industry declines by more than 10 %

New Delhi, Tuesday, April 21, 2015: Achievements and Highlights for FY 0-08

 Defying the industry trend, Hero Moto Corp achieved sales of 33,37,142 units of two-wheelers,

thereby consolidating leadership in domestic motorcycles market with more than 52 per cent

market share.

 Hero Moto Corp retained the coveted position of 'World's No 1 two-wheeler company' on unit

sales by a single company during calendar year 2007 for the seventh year in a row.

 Crossed half a million retail sales in the festive season in 2009, and achieved landmark

cumulative sales of twenty million bikes in course of 2009.

65
  New Delhi, March 31, 2013: Hero Moto Corp (HML), the world’s largest two-wheeler

manufacturer, further consolidated its undisputed market leadership, reporting impressive sales

numbers for the month of March. Once again, defying the industry trend, the company sold

3,20,594 units of two-wheelers in the month, a growth of 15 per cent. Hero Moto Corp had sold

277,915 units of two-wheelers in March 2014.

The company’s total sales for the financial year 2009-10 stand at 33,37,142 two-wheelers, as compared

to 33,36,756 units for the previous financial year (2007-08). This is significant in view of the severe

slowdown that the domestic two-wheeler industry is going through for the past more than a year.

Mr. Pawan Munjal, Managing Director, Hero Moto Corp said, “The year 2009-10 has seen a leadership

performance from us. Despite the industry slowdown, we have been able to manage positive growth

thereby taking our share in the domestic motorcycle market upward of 52 per cent. At the end of the

financial year, I would definitely like to thank our millions of customers across the country, who have

made it possible. We will continue to focus on our customers and they can surely look forward to many

more launches and various initiatives in the coming year.”

HML’s good run through the industry slump in 2007 has been possible due to the company’s multi-

focal strategy of bringing in new models and variants across segments, supporting them with innovative

communication across media, leveraging properties such as cricket and entertainment for brand

building and augmenting its distribution network.

Hero Moto Corp also recently associated itself with the Indian Premier League (IPL) as a partner and

is also the official sponsor of the Delhi Daredevils (Delhi’s IPL Team).

Fiscal 2013-14 saw Hero Moto Corp launch new models across segments. The company more than

doubled its volume and share in the premium segment this year, with the new all-muscle and macho

Hunk, and the sporty and stylish CBZ X-treme both doing very well. Other new launches such as

Splendor NXG, and refreshes of successful models including Pleasure, Super Splendor, and Passion

Plus, were added to Hero Moto Corp ’s product portfolio in the FY 13-14

66
The company also crossed the landmark 20 million cumulative sales during the course of year.

Hero Moto Corp continues growth momentum with 9.5 per cent increase in may sales

New launches such as the refreshed splendor nxg & hunk driving volumes in respective segments

New Delhi, Tuesday, April 21, 2009: New Delhi, June 1, 2008: Carrying on its impressive growth

momentum in the new financial year (2015-16), (HML), the world’s largest two-wheeler manufacturer

for seven consecutive years, today reported a 9.5 per cent growth in its sales in May 2013

Hero Moto Corp sold 3,12,317 units of two-wheelers in May 2013, as compared to 2,85,109 units in

the corresponding month last year. This comes close on the heels of a nine per cent growth the

company had reported in the month of April with sales of 2,86,252 units of two-wheelers. Thus Hero

Moto Corp has already clocked a total sales of 5,98,569 units of two-wheelers in this financial year.

According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Moto Corp ., “Our recent

launches such as the refreshed Splendor NXG and the 150cc Hunk have been driving volumes in their

respective segments. While Hunk has contributed largely to doubling our volume and share in the

premium segment, the refreshed Splendor NXG has been driving the volumes in the deluxe segment.

Our new campaign for Splendor NXG is currently on air on all mainline TV channels. We continue our

strategy of brand building, and we will continue to utilize our various properties in the field of cricket

and youth entertainment towards this end. We have carried forward our commitment to the promotion

of cricket by partnering the highly-successful Indian Premier League (IPL), as well as being the official

team sponsor of the Delhi Daredevils.”

Hero Moto Corp was bestowed the “Enterprise Excellence Award 2007” by the Indian Institution of

Industrial Engineering (IIIE) at an awards function held in Goa in the month of May.

Hero Moto Corp Continues To Consolidate Market Leadership With 27 Per Cent Growth In August

Sales

New Delhi, Tuesday, April 21, 2015: Reports robust sales of 305,516 units during the month

• Cumulative sales in April – August ’08 grows by 19 per cent

67
New Delhi, September 1, 2013: Hero Moto Corp (HML), the world’s largest two-wheeler

manufacturer, further consolidated its leadership in the domestic motorcycle market, with a robust 26.8

per cent growth in sales for the month of August 2016. The company sold 305,516 units of two-

wheelers in August 2013, compared to 240,875 units in the corresponding month last year.

With this, Hero Moto Corp ’s cumulative sales in this financial year so far (April-August 2013) stands

at 14,81,077 units as against 12,44,919 units in the corresponding period last year – reflecting a 19 per

cent growth in cumulative sales.

This carries forward the company’s positive growth trajectory since the beginning of this financial year

(2008-09), further augmenting its more than 55 per cent share in the domestic motorcycle market.

According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Moto Corp , “Our strategy is

yielding results. The strategy hinges on creating winning brands across segments, investing in brand

building, exploring untapped markets in rural and upcountry areas while consolidating urban presence

and rapidly expanding our network. However, the industry continues to face uncertainty on account of

high interest rates and overall credit squeeze. The festival month of October is going to be crucial in

determining the overall outlook of the industry for the year.”

Key Hero Moto Corp brands continue to drive strong volumes across segments - CD Deluxe in entry

segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and Hunk,

CBZ X-treme and Karizma in the premium segment.

Hero Moto Corp’s scooter Pleasure has also been growing strongly, with more than 12,000 units being

sold in August this year.

Hero Moto Corp net profit zooms 31% to rs 275 crore in q3 (fy 2015-16)

Reports turnover of rs. 2795 crore records ebidta of 13.95%

New Delhi, Tuesday, April 21, 2013: Q3 Highlights

Corporate performance: • Consolidated over 50% share in the domestic motorcycle market

 Reported highest ever sales in a month in October 2007 (365,022 units)

68
  Crossed half a million retail sales in the festive season

 Closed calendar year 2013 with sales of over 33 lakh two-wheelers Achievements:

 Retained the coveted position of World No 1 two-wheeler company for the seventh

consecutive year

 Crossed landmark sales of Two Crore bikes; celebrated the achievement with “Hero Moto

Corp BIKE-A-THON”- a nationwide marathon of Hero Moto Corp bikes under the “Hero

Moto Corp Country” campaign

New Launches:

 Launched two new models Hunk (150cc) & refreshed Splendor+ along with a Special Edition

 Doubled volume and share in the premium segment - currently own almost 20% share

New Delhi, January 31, 20013 Hero Moto Corp . (HML), the world’s largest two-wheeler

manufacturer, today reported 31% per cent growth in profit after tax (PAT) at Rs 275 crore for the third

quarter (October-December) of this financial year (2015-16). Hero Moto Corp’s profit after tax in the

corresponding period last fiscal stood at Rs 209.18 crore.

Total Turnover (sales turnover plus other income, net of excise) grew to Rs 2795.17 crores, a growth of

3.54 per cent over Rs 2699.63 crores recorded in the corresponding period last fiscal. The company has

recorded an EBIDTA margin of 13.95% in the quarter. The EBIDTA margin in the previous quarter

(July-September’07) was 12.39%.

This strong financial performance comes close on the heels of the company’s good overall sales even in

the face of the prevailing slowdown in the two-wheeler industry. Hero Moto Corp’s cumulative total

turnover for the first three quarters (April–December 2013) of this financial year stood at Rs. 7673.43

crores.

Hero Moto Corp's strategy for aggressive top line growth through new product launches, brand building

initiatives backed by innovative communication has resulted in market share gain across every

69
segment. Indeed, Hero Moto Corp’s share in domestic motorcycles market has been growing upward of

50 per cent, despite the slowdown in the two-wheeler industry.

According to Mr. Brijmohan Lall, Chairman, Hero Moto Corp., “Our performance during the third

quarter of this fiscal has been very encouraging considering the current slowdown in the two-wheeler

industry. We have been consistently reporting better-than-industry sales numbers, and it has also been

reflected in our bottom line. We wish to thank all our customers and stakeholders for reposing their

faith in our company and our products.”

Mr. Pawan Munjal, Managing Director & CEO, Hero Moto Corp . said, “Given the industry slowdown

scenario, we are very enthused by our robust financial numbers for the third quarter. However, this was

not unexpected. We had undertaken some strategic initiatives since the beginning of this fiscal,

including a conscious effort to rationalize costs across the board, and its results are now visible. Our

bottom line has seen a consistent improvement, and we have been able to demonstrate that it is possible

to keep gaining market share while maintaining a robust bottom line.

“With input costs softening and our sharp focus on cost efficiencies, we should be able to further

improve upon our financial results,” he added.

Hero Moto Corp Passes on Excise Duty Cut Benefit To Customers

New Delhi, March 1, 2008: Passing on the excise duty cut benefit in Budget 2008 to customers, Hero

Moto Corp (HML), the world’s largest manufacturer of motorcycles, today reduced prices on all its

models, ranging from Rs1000/- to Rs 2400/-.

The company, which sold 265,431 units of two-wheelers in the month of February, reduced the price of

Splendor+ by about Rs 1300/- (ex-showroom Delhi) and on Karizma by about Rs 2400/- (ex-showroom

Delhi). Similarly, the price of its best-selling 150cc bike Hunk has been reduced by about Rs 1800/-

(ex-showroom Delhi).

Mr. Pawan Munjal, MD & CEO, HML, said “Hero Moto Corp has taken the voice of the customer to

the government, and consequently the excise duty on two-wheelers has been reduced to 12 per cent

70
 from 16 per cent. This is a welcome move, and we are happy to pass on the entire benefit to customers.

The reduction in excise duty cut will enable us to draw more customers to our fold, but the basic factors

causing the industry slowdown still remain unattended. Credit financing has been withdrawn in some

key markets, while interest rates on consumer loans also remain very high. This credit squeeze

continues to be the most critical factor adversely impacting industry growth, and we still don’t see any

indication from the banks and the government to address this concern. For the industry to make a

turnaround and get back on the path of growth, the government has to address these key issues.”

c) Contacting customer and making sale

Sales performance

Hero Moto Corp reports leadership performance with 50 % net

• Total turnover (Net sales & Other Operating income)Rs 3202 crores, growth of 35.6 per cent

• Net profit after tax at Rs 306.30 crores, growth of 50 per cent

• EBIDTA margin for the quarter 13.58 per cent

• Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent

• Total sales for H1 stands at 18,66,349, growth of 19.7 per cent

• Over 55 per cent share in domestic motorcycle market

• Launches first-of-its kind music video to celebrate 25 years of Hero Moto Corp

New Delhi, October 21, 2013: Hero Moto Corp (HML), the world's largest two-wheeler company for

seven consecutive years, today firmly reiterated its undisputed leadership in the domestic two-wheeler

market with impressive bottom line growth for the second quarter (Q2) – July to September - of this

financial year (FY) 2014-15

Even as the industry continued to face tough market conditions on account of uncertainty over interest

rates and overall credit squeeze, the company reported 50 per cent growth in profit after tax (PAT) at Rs

306.30 crore for the second quarter. Hero Moto Corp 's profit after tax in the corresponding period last

fiscal (July - Sept, 2009-10) stood at Rs 204.33 crore.

71
Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, a growth of 35.6 per cent

over Rs 2361 crore recorded in the corresponding period last fiscal. The company has recorded an

EBIDTA margin of 13.58 per cent in the quarter. The EBIDTA margin in the previous quarter (April -

June '2013) was 12.20 per cent.

The strong financial performance is in line with the company's better-than-industry top line growth. After

posting a growth 11.38 per cent in the first quarter, the company kicked off the second quarter with a

39.8 per cent growth in sales in the month of July, and followed up with 26.8 per cent growth in August

and 22.4 per cent in September. Hero Moto Corp consistently keeps growing its share in the domestic

motorcycle market, and currently enjoys over 55 per cent share.

Hero Moto Corp's cumulative sales for the second quarter (Q2) this FY stands at 9,72,095 units - a

growth of 28.5 per cent over Q2 last FY (2007-08). The cumulative sales for the first six months (H1)

stands at 18, 66,339 units of two-wheelers compared to 15, 59,486 units sold in H1 in the last FY –

reflecting a consistent 19.7 per cent growth in cumulative sales.

Dr. Brij Mohan Lall, Chairman, Hero Moto Corp, said "We are happy with our financial performance. It

gives immense joy to see this kind of results in the 25th year of our company. I wish to thank all our

stakeholders – customers, associates, dealer friends, ancillaries and also our joint venture partners Hero

Moto Corp Co – for their continuous support."

Mr. Pawan Munjal, MD & CEO, Hero Moto Corp., said "Our numbers speak for themselves. Even in this

volatile and competitive environment, our top line continues to outpace the industry growth, our market

share is at an all time high, and the financial balance sheet is a delight – all the factors which form the

hallmark of a resilient company with cutting-edge management. We will continue to keep innovating – in

bringing in technologically-superior products, in our network expansion, in brand building, in our

financial management, and in our communication."

72
"Going forward, we will have to keep a close watch on the commodity prices movement, and other

factors such as inflation, interest rate scenario and availability of retail finance. These factors will play a

crucial role in the industry growth in the subsequent quarters," he added.

Hero Moto Corp has already rolled out its festive season initiatives, with the launch of four new models

– the all-new "Passion Pro" and three refreshes of its existing models - new CBZ X-treme, a self–start

version of Splendor NXG and the refreshed Pleasure. During the coming months, the company will

further augment its product portfolio with new launches across segments.

Key Hero Moto Corp brands continue to drive strong volumes across segments - CD Deluxe in entry

segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and Hunk,

CBZ X-treme and Karizma in the premium segment.

Celebrating its 25th year, Hero Moto Corp released an innovative music video in the month of

September. Titled " Hero Moto Corp Dhak Dhak Go", and involving as many as eight brand ambassadors

of Hero Moto Corp, the music video has been receiving rave reviews.

Hero Moto Corp recently won two very coveted awards - "The Most preferred Brand of two-wheelers"

award at the recent CNBC Awaaz Consumer Awards 2008, and the "NDTV Profit Business Leadership

Award".

d) Order filling

In order to protect against fraudulent encashment, how can one incorporate the details of his bank

account on his dividend warrant. What is the procedure that he should follow?

If one is holding shares in physical form, he should duly fill the request updation form for bank mandate

and sent the same to our R & ST Agent, M/s. Karvy Computershare Private Limited. The Company will

take on record such request complete in all respect and incorporate the same on future dividend warrants.

However, if one is holding the shares in electronic mode then such details needs to be furnished to the

respective Depository Participant with whom one holds the demat account and not to Hero Motors

Limited or our R & ST Agent.

73
 e) Payment Collection

All elements of current assets are not equally liquid. Inventories are the most illiquid of current

assets. Also bank overdraft, cash credit & other short-term borrowings which are used as a means of

financing current assets. These are renewable & become due for payment at a particular point of time.

Repayment schedule for such working capital finance is not as short as it is for sundry creditors. Even

such financing arrangements may go year after year with increasing level of cash credit & bank

overdraft limits. So these short term liabilities are excluded from current liabilities while qualifying

liquidity. The lacuna of this approach is that debtors & advances may become more illiquid than

inventories. The ratio is calculated as below

Hero Moto Corp has built leadership positions primarily due to its belief in the following principles

Understanding stakeholder (incl. International partners and customers) expectations and delivering value

for money Managing relationships Creating a Performance culture “Partnership Approach” with

ancillaries Efficient Current Asset Management

Accepting and using ever-changing technology as a facilitator Strong quality and process orientation

Results of Hero Moto Corp initiatives

The Hero Moto Corp philosophy of empowering and training human capital, use of appropriate

technologies, and constantly being close to the customer and with the maintaining a healthy work

environment with the highest standards of ethics and corporate governance has resulted in the Group

companies through excelling in their chosen field through, impressive attitude year after year, leading to

impressive financials and healthy returns to all stakeholders .

Hero Moto Corp to finalise third unit location, investment soon

Two-Wheller Manufacturer Hero Moto Corp is close to finalising a location for its third Manufacturing

plant in the country. The company, which now has capacities of 2,40,000 units annually from its existing

Manufacturing facilities will shortly announce the location and investments that will go into the new

manufacturing facility, Mr Pawan Munjal, Managing Director, said here on Monday.

74
"We have been experiencing capacity constraints, especially after launching new models, and while we

are in the process of continuously adding capacities the issue will be resolved after our third facility is set

up," Mr Munjal said. "We expect to reach the three-million level in this fiscal with our existing

facilities," he added.

The two-wheeler company is also in talks with joint venture partner Hero to make its operations a

sourcing hub for the export markets, Mr Munjal said. "Hero has manufacturing and distribution presence

across the world but we are convincing them to make us the sourcing hub for the 100, 125 and 150 cc

range. There is a significant cost advantage in it and the talks are currently on about various

possibilities," he said.

The company's exports, largely to Sri Lanka, Bangladesh and Latin America, grew over 60 per cent in the

last fiscal to 65,000 units and it is expecting to cross the 100,000-mark this year. Mr Munjal, however,

ruled out the possibility of setting up assembly operations to feed its export business.

Hero Motors, meanwhile, is also gearing up for the launch of two other models, one of them in the 150

cc power segment of the motorcycle market, in the current fiscal.

Work is also under way on a range of new Quantum Core engines that Hero is now developing that will

soon be deployed on its new vehicles, especially in the power range, said Mr Atul Sobti, Executive

Director, Business Operations.

Meanwhile, the company's new 125 cc Glamour model has already sold over 15,000 units in the two

weeks since its launch, according to Mr Sobti, who said that work is on to ramp up production in a phase,

given the capacity constraints that it is currently experiencing. "We expect to reach the level of 30,000

units/month six months from now," he said

Hero Moto Corp sales up 34%

Hero Moto Corp on Thursday reported a 34 per cent rise in sales in May at 3.03 lakh units as against 2.26

lakh units in the same month last year. The sales in the domestic market stood at 2,93,758 units during

Passport to Customer Loyalty

75
Last April Hero launched the Hero Moto Corp Passport, a program designed to increase customer loyalty.

Customers who sign up are issued "passports," and they receive points when purchasing parts or referring

new customers. "This helps us in getting to know our customers better," says Pawan Munjal. "We have

600,000 members in the program, and we also organize events where they can meet sports stars and film

stars. This creates loyalty in our customers."

But to create loyal customers, a company must first have loyal employees. "Fortunately, Hero has a good

name, Hero has a good name, so we attract very good people," says Brijmohan Lall, who at 79, still

continues to put in a full day's work as chairman. "With our long experience we have created a friendly

atmosphere. My door is never closed, so anyone can walk in at any time."

As a reward for becoming the world's largest motorcycle manufacturer, the Munjals took the managers

(along with their wives) who had contributed most to this success on a vacation to Switzerland last year.

"We conducted a seminar on top of a Swiss mountain to symbolize our success," says Brijmohan Lall.

"We also invited a professor from Harvard University to come and give us a talk on how we must now

compete and sustain ourselves at this new level."

Hero Moto Corp's IT Strategy

With the Indian motorcycle market opening up to overseas competitors and more fierce domestic

competition, Hero Moto Corp decided it needed to overhaul its various computer systems and create a

single integrated IT system. Rather than continue to use computers merely for data processing, it sought

to use IT to integrate business operations such as product planning, materials resource planning,

financials and sales and distribution. It was also looking to automate its internal supply chain, reduce

overall costs, and create a transparent information system that would help managers make decisions more

quickly. To do all this it teamed up with SAP in June 2000 to implement the system, and went live in

February 2001.

"Now we can look at the same information, when earlier we had three or four different versions, which

didn't always match," says Pawan Munjal. "Now we (the managers) can all look at the same costs, for

76
example, because all the information is up there on the screen. Nothing is hidden, everything is

transparent. So there are no arguments over figures now, which used to waste time and hold up decision-

making."

There are improvements on the factory floor too, now that manufacturing has been brought into the new

IT system. In the past there was no accurate way of checking the consumption of raw materials and

inventory in general. So excess stocks in some areas became an inevitability. "Now we know what should

be there and what is there," says Pawan Munjal. At the same time, defective parts and materials are no

longer accepted, forcing suppliers to upgrade their quality.

"The next step is to get dealers and suppliers online, so that orders can be taken directly by the suppliers,"

says Pawan Munjal. This will eliminate any wastage that is still left in our supply chain."

In upcoming issues of the SAP 30th Anniversary Leadership Interview series, we learn how experience,

innovation and vision are driving other major Asian corporations to be leaders in their fields

77
 Chapter -3

RESEARCH

METHODOLOGY

78
 RESEARCH METHODOLOGY

Research methodology is a systematic way, which consists of series of actions or steps necessary to

effectively carry out research and the desired sequencing of these steps. The research involves a number

of interrelated activities, which overlap and do rigidly follow a particular sequence. It consists of the

following steps

 Objective of the study

 Methods of data collection

 Sample plan

 Collecting the data

 Processing and analyzing the data

 Reporting the findings

79
 Objective of Study

Sample size

Sample selection

Sample selection

Research design

Study Sample

OBJECTIVE

This study is done in keeping following objective

1 To find out the present status of the automobile industries in India

2 To study the market research of the automobile industries

3 To study the distribution and marketing strategy adopt by automobile industries

4 To enhance out analytical skill in the field of practical application of marketing

80
Sample size

I choose only 30 employees for collecting sample because it is not possible to interaction all employees.

Mayur vihar

Sample selection

In sampling selection, I have used the convenience sampling technique for this research. It is a type of

non-probability sampling. There is no inclusion criterion for selection of subjects. All subjects are invited

to participants.

 Observation – questionnaire – Interview

Topic:

MARKETING STRATEGIES OF HERO MOTO CORP

Research Design:

Research design can be described as a general plan about what you will do to answer the research

question

 Observation – questionnaire – Interview

Study of samples

Universe -  It represents the entire group of units which is the focus of the study. Thus, the population

could consist of all the persons in the country, or those in a particular geographical location, or a special

ethnic or economic group, depending on the purpose and coverage of the study.

Techniques-

The manner in which technical details are treated or basic physical movements are used; also:  ability to

treat such details or use such movements good piano technique

81
Limitations of research methodology

 Formulation of research aims and objectives

  Choice of data collection method(s)

  Implementation of data collection method

  Scope of discussions

82
 CHAPTER – 4
DATA ANALYSIS AND
INTERPRETATION

83
 DATA ANALYSIS

For finding the result of Marketing Strategy in Sales of motor bike we have to go through the

customers perception and attitude. As for example age group, house holds annual income and

purchase. These things focus the Marketing Mix. Then we have to go in details of all factors of

coaster of Marketing Strategy as family, gender, geographic location, social, cultural, income age, sex

etc. consumer behaviour are quite different their Pre-purchase, purchase decision and post purchase

behaviour. For different product consumer behaves in different way. For buying the motel motor bike

consumer prefer look robustness, Mileage and comfortable. Brand image of the products is very

important. Finding through the consumer survey through questionnaire as follows.

 Approximately 60% user are between the age group of 18 to 25, then 25-35. thus mostly the

young prefer to riding the bike generation.

 Most of the customer are in the annual income group 60,000 to 1 lakh. It means high income

group mostly preferred four wheeler.

 Most of the customer between the age group of 25 to 35 use bike office going purpose and 18 to

25 for college going or maintain their fined circle

 Brand of the product most affect the behaviour of the consumer.

 Customer known about the brand mostly through T.V. and word of month.

 Price a not effect the consumer it the quality, availability and after sales services are good.

 In case of decision making friends, parents players an important role.

 Consumer buying decision affected by physical feature and technological feature of the bike.

84
1. PURPOSE OF PURCHASE OF BIKE?

OFFICE GOING 39%39%

COLLEGE GOING 25%25%
MAINTAINS FRIENDS 14%14%
OTHER PURPOSE 22%22%

22%
39% Office going
College going
Maintains Friends
14%
Other purpose

25%

interpretaion: People mainly used the company bike for the purposes like travelling, maintaining
different social circles, leading daily LIFE, going distances and other purposes. most of the people use
the bike for maintaing and leading daily life.

85
2. BRAND AWARENESS MEDIUM?

TV 38%
NEWSPAPER 25%
WORD OF MOUTH 23%
DEALER EFFORT 9%
OTHERS 5%

9% 5%

38% TV
Newspaper
Word of mouth
23% Dealer effort
Others
25%

interpratation: people are more directed to the brand AWAreness through social gatherings and media.
mojorily, the population followes the brand through television and newspaper and then the major faith
perspective came from word of mouth and dealer effort.

3. PURCHASE INFLUENCER

86
 QUALITY & FEATURE OF PRODUCT 15%
PRICE 10%
EASE OF AVAILABILITY 15%
BRAND IMAGE OF THE PRODUCT 24%
AFTER SALES SERVICE 32%
VALUE OF MONEY 4%

Quality & feature of product

4% Price
15%

Ease of availability
32% 10%

Brand image of the

product
After sales service
15%
Value of money
24%

interpretation: purchasing was largly influenced by the brand image, after saled service, quality of the
product and ease of the availibility of the product. other major drivers are price and value for money
perspective of the product.

4.PHYSICAL FEATURES THAT EFFECTS MOST?

87
 LOOKS 35%
BODY BUILDS 25%
STYLE 22%
ROBUSTNESS 18%

18%
35%
Looks
Body builds
Style
22% Robustness

25%

interpretation: there are many drivers that influence people to purchase bikes but one of the craze drivers
are the physical features like looks majorily and body builds, style and robustness on the secondary level.

5. PAYMENT MODE FOR PURCHASES

88
 ONE TIME PAYMENT 15%
FINANCIAL OPTION 65%
EXCHANGE OFFER 12%
OTHERS 8%

8% 15%
12%
One time payment
Financial option
Exchange offer
Others
65%

interpretation: payment mode for the purchases varied a lot as it includes people who defines their
purchases with one time payment and it also includes the people who chose financial options majorily to
purchase the vehicle. other people also use many options like exchange offer, credit payment etc.

6. TECHNOLOGICAL FEATURES EFFECT BUYING?

89
POWER - ECONOMY MODE 22%
MILEAGE 48%
FOUR STROKE ENGINE 18%
OTHER 12%

12% 22%

18% Power - economy mode

Mileage
Four stroke engine
Other

48%

interpretation: bikes are the technological advancement of the society that ease our travel and journey and
therefore people generally tend to follow some good perspectives regarding technology. in present
scenario, people tent to look the mileage and power (economy mode) perspective during purchase
alternatives. other technology drivers are four stroke engine, speed and technological features etc

8. PURCHASE MADE FROM

AUTHORIZED DEALER 47%

NEAR BY DEALER 33%
ONLINE 13%

90
 OTHER 7%

7%
13%
Authorized dealer
47%
Near by dealer
Online
Other
33%

INTERPRETATION: there are many modes for people to purchase the bikes but the most popular way in
present scenario seemed to be purchasing from the authorized dealer who captured nearly half of the
purchase of the bikes all ways. other major options are the unauthorized dealers nearby, online purchase,
second hand purchases etc.

9. Better after sales service of brand ?

BAJAJ DISCOVER 17%

PASSION 23%
TVS VICTOR 27%
FZ S 24%
OTHERS 9%

91
 9% 17%
bajaj discover
25% Passion
TVS Victor
FZ S
23%
Others

26%

interpretation: the major driver for people to buy any vahicle is the after sales services by the company

and the availibility of the service centres on the different locations. the major brands that maintained this

quality services are tvs victor, FZ S and passion and bajaj discover

10. Bike preferred in future purchase?

7%
22%
FZ S
29%
FZ S 22% Pulsar
PULSAR 15% Passion
PASSION 27% 15% Apache
APACHE 29% Other
OTHER 27% 7%

92
Interpretation: in immidiate future time purchases, the bikes prefered would be the one who gave majorly

all the factors that commonly listed in the report. The major captured marketeers are apache, passion, fz s

and pulsar etc.

93
 Chapter -5

CONCLUSION

AND RECOMMENDATIONS

94
 CONCLUSION AND RECOMMENDATIONS,

The motorcycle industry had a perceptible shift from a buyer market to the seller market with the variety

of choices. Now the customer even has a plethora of choices to choose the best-suited requirement. All

the players, weather be it HML, Yamaha or any other will have to compete on the basis of many things

like attributes, reliability and so on. There is no doubt in the fact that Hero Moto Corp Company rules the

motorcycle industry and has a good brand name, but the company will certainly have to initiate some

efforts. The company has then highest market share in the motorcycle industry and maintaining such a

good share will pose a challenge to the company. The company is doing very well in the business.

According to me, no other company can beat this company in the years to come because of its strong

brand name in the market. This company would be successful in the years to come as the company has

good amount of brand loyal customers. When there is talk of bike, the first thing that comes to mind is

Hero Moto Corp because of strong brand image. In our study the main emphasis was towards the

marketing mix elements (Product, Place, Price and Promotion). The analysis is totally based on the

marketing mix elements. Further for analyzing the market share of the company properly; a survey was

conducted which also forms a part of the findings.

The two-wheelers market has had a perceptible shift from a buyers market to a sellers market with a

variety of choices. Players will have to compete on various fronts viz pricing, technology, product design,

productivity, after sale service, marketing and distribution. In the short term, market shares of individual

manufacturers are going to be sensitive to capacity, product acceptance, pricing and competitive

pressures from other manufacturers

The segments, motorcycles have witnessed capacity additions in the last one-year and cost will continue

in the upcoming period as and when Hero opens a local subsidiary. Over this period, only the motorcycle

segment is expected witness higher demand vis-à-vis supply, while the scooters and mopeds supply will

outstrip demand.

95
As incomes grow and people feel the need to own a private means of transport, sales of two-wheelers will

rise. Penetration is expected to increase to approximately to more than54% by 2016.

The motorcycle segment will continue to lead the demand for two-wheelers in the coming years.

Motorcycle sales is expected to increase by 20%yoy as compared to 1% growth in the scooter market and

3% by moped sales respectively for the next two-years

The four-stroke scooters will add new dimension to the two-wheeler segment in the coming future.

Perhaps, the moped segment will be the worst affected due to Y2K emission norms applicable from April

2002 as not many of the present models confirm to the norms

The three-wheeler segment will witness 10%yoy growth for the next two years. In spite of entry of

Piaggio, Italy into the three-wheeler segment in the country, Bajaj Auto will continue to dominate the

segment. In this segment, we would see players shifting from diesel to cleaner fuels like CNG in line

with norms set out by various state governments.

On surveying Hero Moto Corp globalization, it was found that the competition & price where preferred

in the bike comparison with other company. Serviceman and businessman both like this Hero Moto Corp

bike, Mileage,4-stroke,4-gear&11.0 BHP. Opinions are all most same. In my survey I found that there

are only 05% bike exports to outside India

JOURNEY SO FAR

Indian companies had relied heavily on their foreign counterparts for technical support, design of the

model etc., while they provided the distribution and branding in the Indian market. Now that the

international market for motorcycles is fairly developed and consumers are well aware, most of these

foreign manufacturers are planning to enter the market on their own. The inadequacy of the public

transportation system, the upwardly mobile middle class, which has the disposable income and the intent

to own a two-wheeler and the sheer size of the Pakistan ,bangladesh srilanka market is proving to be an

attractive factor to many multinational companies. India's two-wheeler industry is the second largest

96
market in the world after China. Hero Moto Corp, whose tie-up with Hero-Hero is going to expire soon,

has already entered the fray with Hero-Activa. Others are also queuing up.

Yamaha Corporation, which was operating in India through a joint venture with Escorts Group, had

decided to call it quits in mid-2001 by buying off Escorts' 50 percent share in the joint venture. Yamaha

now plans to tap the Indian market on its own with models such as RX-135, RXZ, YBX125, YD125, and

ACE. Its name has become fairly established while the joint venture had been in operation for two

decades. On its own now, Yamaha has started implementing its ambitious plans for the Indian market and

has embarked on a challenge 21 project, a time-bound initiative that is aimed at reorienting and

revitalizing the entire Indian operations in order to achieve a competitive edge. Yamaha has set for itself

the target of capturing 21 percent of motorcycle market by 2005. India is one of the few countries where

Yamaha, the world's second largest motorcycle manufacturer operates a fully-owned subsidiary.

RECOMMENDATION

There are no two opinions that the automobile industry is faring very well in the Indian market since the

early 90’s.However it can perform better in the market of it

1 The first recommendation is obviously about the customer care. Presently the company has a

customer relation department but it has to be made stronger and more service provider to help the

customers.

2 The distribution network should be made stronger so that the customers don’t feel dissatisfied

for services, sales, and stocks.

3 This is a age of customer delight and the company should not forget that “customer is the king”

4 Everywhere there is a game of production and volumes, the company that produces more can

save more and prices could be made more competitively

5 The company should always go for quality

6 The R & D base should be made stronger as the level of indigestion should come down.

97
After doing market research I would like to suggest or recommend to the Company that there are certain

out comes of research, which followed through the formal and informal procedure during the research.

Thus we are bound to draw the attention of Company to certain points which are ought to be perceived by

the Company with full care.

1. Publicity and advertisement should be broad, because competition is more.

2. Size and weight of bike should be match with their C.C.

3. company should follow world wide strategies for increasing their global revenue.

4. Bike should have stepping facility. Which may help during critical situation.

5. Company should provide promotional schemes to the customers.

6. All the protective parts of wheels should made of plastic and leg guard also be strong.

7. Now Company is required to recover the faith of customers towards the brand image.

8. Company should improve the mileage of the Bikes.

9. Prices of the Bike must be set as it can be approved by major part of the population.

10. Fuel tank portion can be changed.

LIMITATIONS

 In my survey I found some limitations are as follows:

 Time was limited.

 Material on internet is very limited.

 Some customer’s were in hurry so they were not given proper opinion.

 Foreign data is not available on the net.

 Bikes are exporting to very limited country

98
 FUTURE PROSPECTS

FUTURE

Hero Moto Corp Is planning to launch bikes at a super Premium ranges i.e. 80,000 INR just in order to

show the technical expertise of the company in front of its customers. With competitors already in this

segment Like Bajaj Eliminator we can accept A cruiser bikes from them in this segment. In addition, the

firm is also in the process of assessing the feasibility of introducing high-powered models from the Hero

stables as fully-built imported bikes. This is the first time after the major debacle of BMW's 645cc bike

that the Hero group is now planning a foray into the lifestyle bike segment. BMW, in alliance with Hero

Moto Corp, had introduced the premium bike at Rs 4.5 lakh. But an embarrassingly low demand saw the

firm trimming its tag to Rs 1.8 lakh. In addition, the firm is also planning to launch a new volume bike,

to be produced with an engine capacity between 100cc and 156cc, unveiling its new basic 100cc bike

splender plus. Priced at Rs 47,855 (ex- showroom Delhi).

99
 CHAPTER -6

BIBLIOGRAPHY

100
BOOKS

• MARKETING MANAGEMENT- KOTLER PHILIP

• MARKETING – GANDHI J.C.

• PRINCIPLES OF MARKETING –PALMER ADRIN

NEWS PAPER

• THE ECONOMIC TIMES.

• THE TIMES OF INDIA

MAGAZINES

• BUSINESS WORLD

• INDIA TUDAY

SPECIFIC SITES

• http:/heromotocorp.com

• www.indianinfoline.com

101
CHAPTER- 7

ANNEXURE

102
 ANNEXURE

QUESTIONNAIRE

Motor bike is not a luxury it has become the necessity in 21st century. I would like take few minutes of

your precious time, Just to know about your views for different bike. I assure you that your information

will be confidential and it would not be share by other organization.

Name:

Age: Sex:

Occupation:

1. What is the size of your family (Including children)?

a) Single b) 2 to 3 c) 3-4 d) above 4

2. Which of the following best identifies you house hold annual income?

a) Below 60,000 b) 60,000 to 1 Lakh

c) 1 to 2 lakh d) Above 2 lakhs

3. For which purpose you purchase the motorbike?

a) College going b) Office going

c) Maintain friend circle d) Other purpose

4. Which of following company’s motorbike do you have ?

103
 a) Bajaj b) Hero

c) TVS d) Yamaha

5. How come you know about that brand? (can make more than one)

a) T.V. b) Newspaper

c) Dealer effort d) World of mouth

e) Internet f) Any other

6. Rate the following in order of influence you purchase a bike?

a) Brand image of the product

b) Price

c) After sales service

d) Quality and feature of product

e) Ease of availability

f) Value for money

7 .Which option you prefer when you purchase a bike ?

a) One time payment

b) Financial option

c) Exchange offer

d) Any other.

8.Who was the decision maker in your purchase of motor bike?

a) Parents b) Friends c) Yourself

d) Spouse e) Other

104
9Which physical features contributed most in you buying decision?

a) Looks b) Body build

c) Style e) Robustness

10. What technological feature effected in your buying decision?

a) Power – economy mode b) Mileage

c) Four stroke engine d) Any other

11. From where did you purchase your bike?

a) Authorized outlet b) Near by dealer

c) Online d) Any other

12. Which brand has better after sales service?

a) Bajaj b) Hero

c) TVS d) Yamaha

e) Other

13. Are you satisfied with your decision?

a) Highly satisfied

b) Satisfied

c) Neither satisfied nor dissatisfied

d) Dissatisfied

14. Which bike do you prefer for buying in future?

a)Suzuki Gixxer b) Tvs apache

c)Pulsar d) Passion

105