EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT

PRESENTED BY: JAYANTA KUNDU

SWASTIK BASU
SAYAN CHATTERJEE
ARNAB BISHNU
AJAY CHOWDHURY
PINAKI GHOSH
PARTHA PRATIM GHOSH
 INTRODUCTION

 Hero Honda Motors Ltd. was incorporated in

January 1984
 Over 15 million Hero Honda two wheelers have
been sold by the company in last 25 years.
 Three Globally benchmarked manufacturing units:
Dharuhera and Gurgaon in Haryana and Haridwar
at Uttarakhand.
 Capable of Producing out 4.4 million units per year.

"We must do something for the community from whose

land we generate our wealth."
A famous quote from the Chairman, Mr Brijmohan Lal Munjal.
 
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Company profile
 Hero Honda Motors Ltd. is the world's largest manufacturer of two-wheelers, based in
India.

 The company is a joint venture between India's Hero Group and Honda Motor Company,
Japan that began in 1984.

 The Company was Incorporated on 19th January, at New Delhi. The Company
Manufacture motor cycles upto 100 cc capacity. Company was promoted by Hero
Cycles (P)Ltd.(HCPL).

 Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and
the $ 2.8 billion Hero Group.

 Hero Honda Motors Ltd is the world's largest two-wheeler manufacturer for nine
consecutive years, today reported record financial results for FY’10 with its highest-
ever annual revenues, operating income and earnings per share.
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Market Share
TVS Honda
11% Yamaha 3%
6%

Hero Honda
48%

Bajaj
32%

Financial Results for FY’10

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent
Total turnover (Net sales and other operating income) of Rs. 15860.51 Crores, growth of
 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
EBIDTA margin for the year 17.4  per cent
EPS of Rs. 111.77, growth of 74.1  per cent

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Vision & Mission

 The Hero Honda story began with a simple vision – the vision
of a mobile and an empowered India, powered by Hero
Honda.

 Hero Honda’s mission is to strive for synergy between

technology, systems and human resources, to produce products
and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the
highest standards of ethics and social responsibilities.

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Objectives

 To make maximum market share in India.

 Being in business is to make money.

 Speed up and automate supplier order processing.

 Synchronize customer orders with supplier schedules.

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Principles of Hero Group

 Understanding stakeholders (includind 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

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Milestone Achieved

 Continues with its industry leadership as the world’s

largest manufacturer of two-wheelers as a single company
for the ninth consecutive year
 Crosses the landmark figure of 4 million cumulative sales in
a single year – posts sales of more than a million units for
every quarter in FY’10
 Hero Honda 'Touch Points' cross 4200 in number as part of
aggressive network expansion initiative
 Launches 9 models in the fiscal including refreshes,
variants and new models

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AWARDS

 National safety awards for the year 2001

 National productivity awards for the year 2001
 Best slogan awards for the year 2002
 ICSI National awards for the year 2004
 ICWAI National awards for the year 2005
 Corporate social responsibility awards for the year 2006
 Bike Indian awards for the year 2007
 Won Gold in the Reader's Digest Trusted Brand in 2009
 Mr. Brijmohan Lall Munjal, honored with the NDTV Profit
Business Leadership Lifetime Achievement Award 2009

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PARTNERSHIPS
Hero Group has always believed in growth through
partnerships and sharing the fruits of growth.

INTERNATIONAL PARTNERSHIPS: Hero Honda Motors is the

most successful Honda Joint Venture worldwide,functioning
for now over two decades.

PARTNERSHIP WITH OTHER STAKEHOLDERS: A large

number of the 5,000 dealers have,had a successful
partnership with the Group for over four decades.

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EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT
SWOT ANALYSIS

Strengths
Strengths Weaknesses
Weaknesses
Ability
Ability to
to understand
understand R&D
R&D isis not
not close
close to
to
customer’s
customer’s needs
needs and
and the Hero
the Hero
wants
wants manufacturing
manufacturing plant
plant
Recognized
Recognized and
and Hero
Hero is
is vulnerable
vulnerable inin
established brand
established brand the joint venture
the joint venture
name
name because
because Honda
Honda
Effective
Effective advertising
advertising Motor
Motor Company has
Company has
capability
capability so
so much
much power
power

Opportunities Threats
Threats
Opportunities
Global
Global expansion
expansion into
into
Honda
Honda Motorcycles
Motorcycles
the
the Caribbean and
Caribbean and and
and Scooters India
Scooters India
Central
Central America
America can
can take
take away
away
Expansion
Expansion ofof target
target market
market share
share and
and
market (include
market (include cause joint venture
cause joint venture
women) to
women) to go
go sour
sour
Become
Become India’s
India’s leader
leader Bajaj
in Bajaj Motors
Motors isis aa
in the scooter market
the scooter market strong
strong competitor
competitor

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Research Methodology
Data Source
 Primary Data: The primary data for the study was collected by
personally administering the questionnaire to respondent and
observation.

 SECONDARY DATA: The secondary data for the study was collected for
other information from books, internet and magazines.

 Sampling Technique : Personal approach with questionnaire

 Sample size: 100

Analyzing and Interpretation of Data.

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Ownership segmentation

DO YOU OWN A TWO WHEELER?

RESULT NUMBER %
NO
20%

YES 80 80%

YES
80% NO 20 20%

80% of the respondents own a two wheeler and 20 % of them do not have
one.
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Most viewed ADs

35 Hero Honda 31
30
Bajaj 27
25

20 TVS 13
15
Yamaha 22
10

5
Honda 7
0
Hero Honda Bajaj Tvs Yamaha Honda
The viewership rate of ads among respondents is highest for Hero Honda
with 31%, and then comes Bajaj with 27%, then Yamaha with 22%, TVS
with 13% & Honda with 7%.
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Best recalled ADs
50
35
45
15
30
15
0

In terms of recall, 50% of respondents were for Bajaj stunt ad, then 35%
were for Hero Honda KARIZMA ad with Hrithik roshan as brand
ambassador.
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Most common source of ADs

TV 28%
INTERNET , 7%
BILLBOARD, 5%
TV
28% NEWSPAPER/
60%
MAGAZINES

BILLBOARDS 5%

NEWSPAPER/
MAGAZINES
60% INTERNET 7%

Among the common source of ads, newspaper and magazines are marked
by 70% of respondents, TV by 18%, Internet by 7% and Billboards by 5%.
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SOURCE OF RELIABLE INFORMATION FOR
PURCHASE DECISIONS

FRIENDS FRIENDS 5%
COMPANY DEALERS 5%
20%

INTERNET 65%
AUTOMOTIVE MAGAZINES
10%

AUTOMOTIVE
10%
MAGAZINES
INTERNET
65%

COMPANY
20%
DEALERS

Out of 100 respondents ,65% found internet as a good source of

reliable information,then with company dealers 20%,automotive
magazines 10%,friends 5%.
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FACTORS WHICH MOTIVATE PURCHASING
DECISION

DISCOUNT
OTHERS 3 30%
RATE

ALLOWANCES 8
EMI 45%

RESALE VALUE 12
RESALE
12%
VALUE
EMI 45
ALLOWANCE
8%
DISCOUNT RATE 30 S

0 5 10 15 20 25 30 35 40 45 OTHERS 3%

EMI is one of the major motivating factor with 45% liking it,then comes discount
rate 30%,resale value 12%,allowances 8%,and others 3%.
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PREFERRED PRICE RANGE (IN 000’S)

> 80 30 - 40 30-40 5%
5% 5%

70 - 80
17% 40 - 50 40-50 22%
22%

50-60 15%

60-70 36%
50 - 60
15%
60 - 70
70-80 17%
36%

>80 5%

The most preferred price range is 60-70 with 36% going for this option.
22% for 40-50, 17% for 70-80, 15%for 50-60, 5% each for 30-40 or for
more than Rs.80,000.
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RATING FOR VARIOUS FACTORS
(1 LEAST PREFERRED AND 7 MOST PREFERRED)

SERVICE AND SUPPORT

BRAND VALUE

DESIGN & STYLE 7

6
SAFETY & COMFORT 5
4
PERFORMANCE 3
2
FUEL EFFICIENCY
1
PRICE

0 10 20 30 40 50 60 70 80 90 100

The most preferred factor is performance with 75% going for it. Then
comes service and support and fuel efficiency with 90% and 70% in terms
of preferences. This is followed by price and brand value of the bike.
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 FINDINGS
The major findings during the data collection and analysis time can be summed up
as follows:

 Interest rates are one of the prime reasons for the sharp fall in demand.

 Difficulty in availing loans, rising defaults, tightening of loan recovery laws and
various other factors.

 Increasing oil prices have deterred many lower middle class families from buying two
wheelers.

 Introduction of low priced cars will directly affect the market.

 With the introduction of the Bharat-4 norms, it will be more challenging to meet these
stringent norms while simultaneously offering competitive prices.
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 CONCLUSION

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