MARKETING CAMPAIGN ON

Group
presenter:
HEMA
TIJA
DEEPAK
SANGITA
SHRISTI
RAMCHANDRA

COMPANY PROFILE:

Formation of HERO CYCLES

Largest bicycle manuf. In India.
Joint collaboration with HONDA Co.
captures market share of 46% share in twowheeler category
Ranked at 108 position in the 2006
magazine.
HERO and HONDA Parted company.
Splendor is top selling bike

VISION AND MISSION

SEGMENTATION, TARGET
MARKET AND POSITIONING

SEGMENTATION:

Major segmentation variables are geographic,

demographic, psychographic.

For bikes, demographic segmentation plays important

role. So features of bikes varies depending on the
segments like age group, gender and income group.

Hero has wide consumer base.

Major segmentation variables are income and age.

Caters youth of all income groups

TARGET MARKET

Among five patterns of target market selection, Hero

follows selective specialization.

It has wide range of bikes Rs. 116500 Rs. 307000

with multiple optional features.

It includes lower middle class consumer to upper

middle class consumers.

Hero is preferred mostly by people who wants

strong, sturdy and powerful, greater mileage, low
maintenance cost, safe to ride, ease and comfort.

BRAND POSITIONING

Important as well as difficult task.

Making consumer aware and keep a mind set.

Hero positions itself as an efficient bike with

higher mileage, durability and consistency.

Advertising Campaign- Fill it-Shut itForget it.

PROMOTION MIX :CORPORATE

SOCIAL RESPONSIBILITY

MANUFACTURING PLANTS

PROMOTION MIX: CSR(SPONSORSHIPS)

PROMOTION MIX: CSR(MEDIA SPONSOR)

CORE BUSINESS PROCESSES

Market sensation: First introduced twowheeler in 1980s to ease consumers, making

their travelling convenient, comfort and with
fuel efficiency.

Market offering: Varieties of segments and

product line developed according the age
groups, geographical locations as such
Splendor Pro Classic, Karizma ZMR, Pleasure,
Xtreme, Splendor iSmart.

CORE BUSINESS PROCESS

Customer Acquisition: The products of HERO

is targeted to the all the levels of customers.
HERO HF Deluxe (100cc)-40,000 INR
HERO HX250R (250CC)-1.5 L INR

Customer relationship: HERO Splendor is

the worlds largest selling bike and still
maintained its long term customer relationship.

FULFILMENT PROCESS:

BRAND LOYALTY: HERO

Nepali market, second international

market chosen by the company after
Sri Lanka.
Splendor known as a popular official
bike in the country.
In the fiscal year 2011-12, Hero sold
6.2 million two-wheelers setting a
landmark for it's competitor across the
globe.

WHO ARE THE LOYAL CUSTOMER OF

HERO??

Lower-middle class consumer and Uppermiddle class consumers.

BRAND LOYALTY AWARDS

IndiaTimes Mindscape and Savile

Row ( A Forbes Group Venture )
Loyalty Awards - "Customer and
Brand Loyalty Award" in
Automobile (two-wheeler) sector.
"Best Activity Generating Short
or Long-Term Brand Loyalty" by
the Promotion Marketing Award
of Asia Order of Merit for Hero
GoodLife.
Most Preferred Brand of TwoWheelers" award at the CNBC
Awaaz Consumer Awards.

CNBC TV18 Overdrive

Awards 2010 'Hall of Fame' to
Splendor.
Ranked No 1 brand in the Auto
(Two-Wheelers) category in
the Brand Equity "Most
Trusted Brand" 2011 survey.
Won Gold in the Reader's
Digest Trusted Brand 2009 in
the 'Motorcycles' category.

FIVE FORCE MODEL

THREAT OF THE NEW ENTRANTS &

ENTRY BARRIER

It is not only existing rival that pose a threat to

the firms but the possibility that new firms may
enter the industry also affects the competition.
Barrier to entrance is an effective tool.

Huge capital investment is required to compete with

existing firms.
Government can limit entrance to a business sector
by laying down legal measures such as license
obligations
Patents and proprietary knowledge serve to restrict
entry into an industry.

BUYERS POWER

Here, the buyer sets the price of the product.

When buyers power is strong, monopsony
occurs, where there are many suppliers and one
buyer.
The power depends on:

The part of total market turnover that is purchased

per buyer.
The degree in which buyers are informed about
demand, market prices and costs of the product.
The switching costs and the profits of the buyers.
The importance of the product for the buyer.

SUPPLIERS POWER

Suppliers can exercise their power by

threatening with increased prices or
deterioration of quality.
The power depends on:

The number of suppliers

No. of substitutes available
Importance of business sector for the suppliers
Switching costs
Product standardization
Vertical integration

THREAT OF SUBSTITUTES

Companies compete in a broad sense

with other business sectors where
substitutes are produced.
The threat of substitutes for Hero are:

Four Wheelers
Electric Bicycles
Electric Scooters

DEGREE OF RIVALRY

The intensity of rivalry commonly is referred

to as being cutthroat, intense, moderate, or
weak, based on the firms aggressiveness in
attempting to gain an advantage.
Some rivals of Hero are:

Honda
Bajaj
Yamaha
Royal Enfield

LEVELS OF COMPETITION: HERO

BRAND COMPETITION:

LEVELS OF COMPETITION: HERO

Form competition: Two wheeler vs. four

wheeler

Industry competition: Bajaj vs. Hero vs.

Yamaha

LEVELS OF COMPETITION: HERO

Generic Competition: Hero

vs.
Holiday
Package(Tour)

BRAND PERSONALITY

Sincere Brand: genuine, family

-oriented
Excitement Brand: youthful, carefree
Sophistication Brand: Premium, elegant
Competence Brand: influential, reliable,
successful.

SCENARIO ANALYSIS: HERO

SCENARIO ANALYSIS: HERO

FINDINGS:

Bajaj Auto claims to have sold 122,698 units

(inclusive of exports) of Discover range of
motorcycles compared with 121,018 units of

Splendor range of motorcycles in September.

Bajaj sells three models of Discover, while Hero sells
four Splendor models.
Splendor sales fell almost 50% in the last six months.
Hero sold 244,683 units of the bike in April this year,
which fell to 176,727 units in August.

RECOMMENDATION AND CONCLUSION

Expand the marketing campaign for

Splendor.
often there is a high demand of
performance vehicle, customer claims
the HERO bike as non-stylish compared
to YAMAHA and BAJAJ. Hence, need to
focus on the stylish design and
performance.
Frequently Benchmark its product with
what the rival firm going to unveil.