Professional Documents
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CERTIFICATE
This is to certify that this dissertation is the work done by ANURADHA MATHURIA student Marketing Strategy of Hero Honda Student of MBA 2009-11, JAYOTI VIDYAPEETH WOMENS UNIVERSITY. This dissertation has the requisite standard for the fulfillment of the Post Graduate Program in Business Administration and has been done under my guidance and supervision during the period 2011. This dissertation report has not been submitted to any other institution for any kind of assessment or consideration, to the best of my knowledge.
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ACKNOWLEDGEMENT
This report is a synergetic product of many minds. I am grateful for the inspiration and wisdom of all those who were with me in this journey.
I am sincerely thankful to, KP MANAGEMENT COLLEGE for providing me with the opportunity to write a research paper in the form of a dissertation on the topic MARKETING STRATEGY OF HERO HONDA
To begin with my faculty mentor lecturer Abhilasha kedia KP MANAGEMENT COLLEGE AGRA who encouraged me to do my best. Without his support it would have been very difficult for me to prepare the paper so meaningful. I am also thankful l to him for his guidance that helped me improve a lot.
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PREFACE
Marketing should not be looked upon in a vacuum or in isolation. It is an essence taking a view of the whole business organization and its ultimate objective concern for marketing must penetrate all areas of the enterprise. Market survey in todays competitive world is a must for every organization. This project is a study of market potential of Hero Honda. The rational behind this particular study is to find out the present market scenario of various brands & to find out the corporate need and perception. It was a pleasurable experience to conduct a research on behalf of Hero Honda pertaining to the study of the Automobile Sector. To carry out this research a sample study was pursued where the target was made to the people of Delhi region. Various statistical and analytical tools and techniques are applied to ascertain and depict the present scenario. Conclusion and there by recommendation has been arrived at by proper and justified interpretation of the result derived from the above said analytical tools and techniques.
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Topic
Page no.
8 9 8 9 910-11 11 12
GE matrix Distribution strategy use to serve the customer and promotional mix Marketing in rural India The secret behind hero Honda success Advertising Types of advertisement Personal selling Sales promotion Direct selling Achievements Porters five force of competitive position training career Growth models Implementing changes Key polices Research Methodology Secondary data Primary data Collection of information limitations Scope of the study conclusions Bibliography
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EXECUTIVE SUMMARY
During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage. In today world customer is the king irrespective of whatever the business may be ,wherever the operations may be .A good business organization is known by its strong customer loyalty, which turns to become a unified family. The project assigned to me by the company was a market study on 100cc bikes among the dealers and customers with special reference to hero Honda dealer and loyalty of customers towards the bike. The objective of the study was to find out the dealers and customers opinion about the 100cc bikes with special reference to hero Honda dealer to understand how market fluctuations affect their strategic decision. The research methodology was descriptive in nature encompassing a sample of 200customers for in-depth analysis It was observed that 80%of the respondents are interested to purchase Hero Honda motor vehicle .are in the age group of 18-35. A large part of respondents with majority of 60% Marketing Strategy of Hero Honda
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are satisfied with the availability of spare part and remaining 40% says no. It was observed that the 92% resplendence are either highly satisfied are just satisfied and remaining 8% are dissatisfied. Different models Hero Honda vehicles can be introduced for ladies, with better comfort, speed and power, so that it can cater to the changing tastes of women. More service station should be established in every part of the city, so those customers have an easy accessibility. With a strong sales and service network of 650 Authorized dealership, 1500 authorized service centers and over 1000 certified service points, Hero Honda is growing from strength to strength. Hero Honda motor should also start producing other models and should add a different style and variety to their product line. This will surely attract more customers. This will help to increase the existing goodwill and position in the market. The experience gained during the analysis and drawing inferences was an exiting and informative exercise under the guidance of unit head.
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INTRODUCTION
Hero Honda Motors Limited is a two wheeler manufacturer based in India. Hero Honda is a joint venture between the Hero Group of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.
Company profile
Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda. Hero Honda has three manufacturing facilities based at Dharuhera, Gudgeon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero Honda has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program.
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Board of Directors
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BOARD OF DIRECTORS
No.
1 2 3 4 5 6 7
Designation
Chairman & Whole-time Director Managing Director & C.E.O. Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director
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10
11
12
Mr. M. Damodaran
13
14
Hero Honda Finlease Limited Chairman and Director Munjal Showa Limited Easy Bill Limited Rockman Industries Limited Shivam Autotech Limited Chairman and Director Director Director Director
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BACKGROUND
Two Wheelers industry in INDIA Early 1950 s, API started manufacturing scooters in India (Librettos). Later Bajaj Auto Ltd a company become a legend in the global scooter industry. License Raj (1940 s to 1980 s), did not allow foreign companies to enter into the market. This made customers to wait for 12 years to buy a scooter. Only three motorcycle manufacturer were there Royal Enfield, Ideal Jawa & Escorts.
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Vision statement
We, at the Hero Group are continuously striving for synergy between technology, systems and human resources to provide products and services that meet the quality, performance, and price aspirations of the customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keeps the momentum going to take the group to excellence in everything we do." The study was done primarily with the following objective in mind. To study the brands of hero Honda & consumers perception with its competitors. To know why people buy hero Honda and why some people prefer other company. To study the features of different brands that gives a good idea of various products and services offered by the company. To understand the competitive environment in which the company is operating and is desired to meet customer need and satisfaction. To provide useful information to the company about the product feature of various competing companies. Marketing Strategy of Hero Honda
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There are more than 20 auto- component manufacturing companies in the state, manufacturing components such as grey- iron casting, precision aluminum casting, leaf springs, oils and lubricants, diesel fuel injection equipment electronics and auto electronics and auto electrical, front axles, gears forging machined components, pressed metal components, pistons, cylinder liners, nozzles delivery valves, starter motors, alternators, electronic regulators, high pressure die castings clutch covers, fuel filters, etc. Most of these components are presently being supplied to hero Honda TVS Suzuki Escorts Yamaha Bajaj and other Amaron Batteries are manufactured in chittoor district. Around 119 components manufacturers have been certified for ISO 9000 quality standard set by government and motors association.
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1956 1961
Hero Cycles Limited is established. Rock man Cycles Industries Limited established, which the largest manufacturer of bicycle chains and hubs is today.
1963
It pioneered bicycle exports from India - a foray into the international market.
1971
Highway Cycles was set up to meet the demands of Hero Cycles. It is today the largest manufacturer of single speed and multi-speed freewheels. 1975 Hero Cycles Limited became the largest manufacturer of bicycles in India. Majestic Auto Limited was formed and the Hero Majesty Moped was introduced. Munjal Castings established. Hero Honda Motors Limited established in joint venture with Honda Motors of Japan, to manufacture motorcycles.
1978
1981 1984
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1985
Munjal Showa Limited established to manufacture shock absorbers and struts and is today among the top two shock absorber manufacturing companies in India. The 100 cc Hero Honda Motorcycle arrived and by 1988 was the No. 1 among all motorcycles in India. Hero Cycles Limited entered the Guinness Book of Records as the largest bicycle manufacturer in the World.
1985
1986
1987
Hero Motors, a division of Majestic Auto Limited set up in collaboration with Steyr Daimler Puch of Austria. Gujarat Cycles Limited, now known as Munjal Auto Industries Limited was established to manufacture and export state-of-theart bicycles and allied products in its fully automated plant at Waghodia. Sunbeam Auto Limited, earlier a unit of Highway Cycles Limited, established as an ancillary to Hero Honda. It is the largest die casting plant in India.
1987
1987
1988
Introduced "Hero Puch" from Hero Motors Limited. This revolutionary machine immediately set new records of petrol efficiency and usable power in 50 - 65 cc machines.
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Sunbeam casting
Established in 1987 Products: - Non ferrous castings
Hero exports
Established in 1993 Products: - International trading company dealing in commodities and engineering items
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CBZ
The Hero Honda CBZ (pronounced Cee Bee Zee) is the latest offering from Hero Honda for the Indian market. With a 156cc engine, the company claims that the bike has a top speed of 100kph within 5.6 seconds. Though the bike has the largest displacement engine, its top speed doesnt match up to many of its competitors. In all other respects, it is a bit too early to decide whether the CBZ will sell in the same numbers as the Splendor. Though the initial market response has been good, only time will be the final arbiter.
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Swot Analysis
Strengths
Ability to understand customers needs and wants recognized and established brand name effective advertising capability strong distribution network and service centers due to the entire customer base is covered.
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Weakness
R&D is not close to the Hero manufacturing plant Hero is vulnerable in the joint venture because Honda motor company has so much power. The technological changes in the bike sector occurred at a very rate. Bajaj Auto ltd. patented the DTS-I model of the pulsar. The technology was introduces by hero Honda into the market with the launch of the ambition, but it was not patented.
Opportunities
Global expansion into the Caribbean and Central America Expansion of target market (including women) to become Indias leader in the scooter market hero Honda can capitalize on its superior distribution channel to facilitate the selling of more bikes. Hero group entered into aviation sector and invested 500 Cr in M.P.SEZ.
Threats
Honda motorcycles and scooters India can take away market share and cause joint venture to go sour Bajaj motors, TVS Motors are strong competitors Bajaj Auto has found popularity with both its low-end and premium offerings, which have helped chip away at hero Hondas dominance.
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PEST ANALYSIS
A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors: Political Economic Social Technological The acronym PEST (or sometimes rearranged as STEP is used to describe a framework for the analysis of these macro environment factors. A PEST analysis fits into an overall environmental scan as shown in the following diagram.
Political factors
Political factors include government regulations and legal issues and define both formal and informal rules under which the firms operate. Some examples include: Tax policy Employment laws Environment regulations Trade restrictions and tariffs Political stability
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Economic factors
Economic factors affect the purchasing power of potential customers and the firms cost of capital. The following are examples of factors in the macro economy. Economic growth Interest rates Exchange rates Inflation rate
Social factors
Social factors include the demographic and cultural aspects of the external microenvironment. These factors affect customer needs and the size of potential markets. Some social factors include: Health consciousness Population growth rate Age distribution Career attitudes Emphasis on safety
Technological factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include: R&D activity Automation Technology incentives Rate of technological change
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Competitors
TVS- Suzuki
Started in 1982 as Indian Motorcycles Pvt. Ltd in collaboration with Suzuki (Japan .Later named as TVS Suzuki Limited which is now one of the leading two wheeler Manufacturers in India.
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Bajaj Auto
Came into Existence in the year 1945, imported scooters and three wheelers from Italy for sale in India. Scooter Production started in 1961 and three wheelers followed in 1962. By entered into a technical collaboration agreement with Kawasaki of Japan Production of Kawasaki 100cc motorcycles started in 1986.
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Escorts-Yamaha
EYML is a joint venture between escorts ltd. Yamaha motors co. Japan in 1985. By June 2000, the Investment Ratio of YMC was 74%.
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Brand ambassador
The company singed the Indian skipper of cricket team Saurav, Ganguly, virender Sehvag Harbhajan Singh Zaheer khan & yuvraj Singh as its brand ambassadors joining the ad campaign together to promote Ambition. All of these celebrities are the member of Indian cricket team and very much popular in younger generation. In the last year with the launch of its new premium bike Karizma hero Honda signed its new brand ambassador who is a cine star and is also very popular. He is Hritik Roshan.
Through its domination of cricket and association with shows like MTV Roadies, it was always focused on the youth. Hero Honda also tapped rural India Har gaon, har angan Additional sale of 15,000-16,000 motorcycles Focus on market share rather than profits Launched Just for HER scooter Pleasure.
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DIVERSIFICATION
Throughout the years of mammoth growth, the Group Chairman, Mr. Lall has actively looked at diversification. A significant level of backward integration in its manufacturing activities has been substantial in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other component-manufacturing units. Then there were the expansion into the automotive segment with the setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero Majestic, went into commercial production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 1000 cc motorcycles. The Munjal also took a foray into other segments like exports, financial services, information technology, which includes customer response services and software development. Further expansion is expected in the areas of Insurance and Telecommunication.
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PRODUCT
CD Dawn, Splendor, Passion, Glamour, CBZ, Karizma etc.
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PRICE
Price of Hero Honda bikes start from Rs.30000 to Rs.70000.
PROMOTION
T.V. Add. News paper Add. Magazine Add. FM Radio Hoardings etc.
PLACE
All over INDIA
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Splendor Price oriented people. Glamour Price as well as tech. oriented people. Karizma Status oriented.
POSITIONING
Worlds largest motorcycle manufacture company. It was commemorated by sales of over 15 million motorcycles.
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MARKETING STRATEGY
A through understanding of the fast-changing consumer behavior, new market segments and product opportunistes 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 motocycles, ensures convenaient Access to the Group's products across the country. With a deep sense of belonging to the Hero fraternity, the Groups dealer network has catalyzed growth andacted as a strong bridge between the customer 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 market place. 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. Let,s compare scooters from all major Marketing Strategy of Hero Honda
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manufacturers from once king of scooter market Bajaj to Japanese Suzuki and Hondas. The Group has under taken a steady up gradation of technologies and there has been diversifications and setting up of newer establishments to meet stringent international standards. At the cor of it all is a customer-centric scheme of polices and production ... and the Bottom line is to "Add Value while Engineering Satisfaction."
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BCG MATRIX
STAR
SPLENDORS series (plus & super) PASSIONs series (simple & plus) CBZ KARIZMA
Dogs
Achiever Honda joy Glamour Ambition
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SPLENDORSSERIES
PASSIONS SERIES
CBZ KARIZMA
HUNK GLAMOUR
AMBITION
CD DELUXE CD DAWN
HONDA JOY
ACHIEVER CD 100SS
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Marketers need to understand of the rural consumers and then act accordingly.
the
psyche
This can be done by utilizing the various rural folk media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals, meals and other activities where they assemble.
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Looking at the kuchha roads of village they positioned their mobile as tough vehicle. Their advertisements showed Dharmendra riding Escort with the punch line Jandar Sawari, Shandar Sawari. Wall paintings, Posters nearby Dabbas. On vehicle advertising- local trains, ST buses.
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Advertising
o Discarded product categorization on the basis of engine size. o Product differentiation was the key. o Avoided customer confusion of products. o Karizma (premium segment) comes with the punch line, Always game. o The ad for the premium segment Hunk doesnt talk of speed or power at all the focus is on the looks even while standing. o The CBZ Extreme comes with the promise, Thinking is such a waste of time.
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Outdoor advertisements:
Celebrity advertisements:
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Covert Advertisements
Mujhe kuch kehana hai-cbz Gavaskar- border trophy-hero Honda bikes as man of the match.
Broadcast advertisements
HERO HONDA RODIES HERO HONDA SAREGAMAPA
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Personal selling
Wide price range. Each product with multiple optional features. Experience speaks. First six service free Once in a year free check up for hero Honda bikes from authorized company service station. Good resale value. Various schemes for government and military employees.
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Sales Promotion
Large product portfolio starting from 37k to 95k. Consistent launch of variants in the same models. Wide range of colors available in each category. Vast network of more than 2100 committed Dealers and Service outlets spread across the country Festive offers- Rs 1000 discount with free accidental insurance.
Sales Promotion
Direct Selling
competition heating up, would we see discounts coming Helpful staff 2100 authorized dealers. Concentrated on brand rather than offering discounts Hero Honda hasn't been offering discounts since two years. Now with the back? For us competition never cooled down. There have been launches by our competitors, some successful, some not. I don't see competition dying down, and we stay true to our strategy -- no discounting of products. A consumer's primary consideration is the brand, which is the biggest differentiator. They will not pay attention to smaller considerations like Rs 1,000 off or a better interest rate etc. MoU with PNB in 2003. According to MoU, PNB will offer motorcycle financing for all Hero Honda bikes at 11 per cent for a period of 1 year and 11.5 per cent for a period of five year. PNB will finance up to 90 per cent of the on-road price of Hero Honda bikes. Hero Honda Motors Ltd has signed a memorandum of understanding (MoU) with Punjab National Bank (PNB) to offer consumer financing option for Hero Honda motorcycles for a period of up to five years. Hero Honda chairman Brijmohan Lall said that the over a quarter of its sales of 18 million bikes in the fiscal 2002-03 were sold through consumer financing. The percentage of nonperforming assets (NPA) on overall Hero Honda consumer financing is around 0.75 per cent. And considering a high re-sale value for a Hero Honda product, lenders have lesser risk to undertake, Mr. Lall added. Marketing Strategy of Hero Honda
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The PNB tie-up is expected to give a fillip to consumer finance-driven sales in rural areas, where adequate financing is not available.
ACHIEVEMENTS
Hero Group ranks amongst the Top 10 Indian Business Houses comprising 20 companies, with an estimated turnover of US$ 3.2 billion during the fiscal year 2005-2006. The Group and its management have acquired a number of accolades and achievements over the years: Hero Group Management style has been acclaimed internationally by World Bank and BBC, Kushiro Group is discussed as a case study at London Business School, UK and INSEAD, France. World Bank has acclaimed Hero Cycles as a role model in vendor development based on a worldwide study. The London Business School, UK, has done a case study on the Group as model of entrepreneurship. Boston Consulting Group has ranked Hero Group as one of the top ten Business Houses on Economic value, in India. Marketing Strategy of Hero Honda
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The Hero Group is recognized as a long term partner and an ideal employer: Hero Group's partnership with Honda Motors, Japan is over 21 years old Hero Group's Partnership with Showa Manufacturing Corporation, Japan is over 19 years old. Group Chairman, Mr. Brij Mohan Lall Munjal received the coveted "Ernst & Young Entrepreneur of the Year" award for 2001. Hero Honda Motors was ranked 3rd amongst top Indian companies Review 2000 - Asia's leading companies award (2004) by Far Eastern Economic Review. Hero Honda Motors is the World's largest manufacturer of twowheelers with annual sales volume of over 3.0 million motorcycles. Hero Honda Motors has been awarded the highest rating for Corporate Governance (2003) by CRISIL - India's Leading Ratings, Risk & Advisory Company and as the Best Governed Company in private sector(Dec 2004). Hero Honda ranked Number One in the two-wheeler category on Environmental Performance by the Centre for Science and Environment. Hero Cycles Limited is a Guinness Book Record holder since 1986 as the world's largest manufacturer of bicycles, with annual sales volume of 5 million bicycles in FY 2006. Engineering Exports Promotion Council has awarded Hero Cycles with the Best Exporter Award for the last 28 years in succession.
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NEW MAARKET ENTRANTS ENTRY EASE/ BARRIERS INCUMBENTS RESISTANCE NEW ENTRANT STRATEGY
BUYER POWER BUYER CHOICE BUYERS SIZE/ NUMBER CHANGE COST / FREQUENCY PRODUCT/ SERVICE IMPORTANCE
COMPETITIVE RIVALRY NUMBER AND SIZE OF FIRMS INDUSTY SIZE AND TRENDS FIXED V VARIABLE COST BASES PRODUCT/ SERVICE RANGE
SUPPLIER POWER BRAND REPUTATION GEOGRAPHICAL COVERAGE PRODUCT / SERVICE LEVEL QUALITY
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Training
The regular technical training programmers for dealers workshop staff to keep them updated and refreshed about the latest price technology, product technical details as well as service and repair procedures to handle customers motorcycle with utmost care as well as to provide them the service quality of highest order is a focus area at hero Honda. Hero Honda has six (06) training centers across the country. There are 05 zonal training centers of pune, Bangalore, Calcutta, Chennai and Delhi to take care of technical requirement of dealers in each zone as well as local technicians. There is a national training center at Dharuhera to take care of all advanced level technical programmers for our dealers staff and our in house service engineers. Hero Honda keeps an organizing dealers mechanics contest at zonal level and national level to develop competitive spirit among mechanics as well as in the process to update their skills product knowledge.
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CAREER
Hero has continuously strived for synergy between technology, systems and human resources, to provide products and services that meet the quality, performance and price aspirations of its customers. While doing so, it has maintained the highest standards of ethics and social responsibility, has constantly innovated products and processes and developed teams that keep the momentum in order to take the Group to new heights. In the forefront of the two-wheeler and auto-components industry in India, the Hero Group is driven by the vision of providing technologically advanced and affordable transport solutions. In doing so its employs and scouts for state-of-theart technology and systems. At Hero, new management strategies, techniques and manufacturing processes are constantly adapted. The work culture at the Hero Group revolves around building relationships - be it with workers, vendors or dealers. All those who come to work within the fold of the Hero Group are offered job security and growth opportunities, both personally and professionally.
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GROWTH MODELS
The Hero Group has done business differently right from the start and that is what has helped us to achieve break-through in the competitive two-wheeler market. The Group's low key, but focused, style of management has earned the company plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition. The growth of the Group through the years has been influenced by a number of factors: The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated in-house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the unit and is functional even till date. The raw materials vendors bring in the goods get paid instantly and by the end of the day the finished product is rolled out of the factory. This is the Japanese style of production and in India; Hero is probably the only company to have mastered the art of the just-in-time inventory principle.
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Implementing Changes
Management introduced new ideas coupled with improved terms of agreement for their joint venture Two primary goals in mind. Continuing their success. MaintImplementing Changesaining their existing market share.
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KEY POLICIES
Environment Policy
Integrate environmental attributes and cleaner production in all business processes Substitution of hazardous chemicals where viable and strengthen the greening of supply chain.
Quality Policy
Quality at Hero is attained not just by modern plants and equipment and through latest technology, but by enforcing a strict discipline. At the Group factories, attaining quality standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest technology with deep-rooted experience derived from nearly four decades of hard labor. It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Constant technology up gradation ensures that the Group stays in the global mainstream and maintains its competitive edge. With each of its foreign collaborations, the Group goes onto strengthen its quality measures as per the book. The Group also employs the services of independent experts from around the world to assist in new design and production processes. Marketing Strategy of Hero Honda
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KEY POLICIES
Safety Policy
Committed to safety and health of its employees and other persons. Ensuring compliance with all applicable legislative requirements. Promoting safety and health awareness amongst suppliers & contractors. Continuous improvements in safety performance through precautions besides participation and training of employees.
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ANCILLARISATION
An integral part of the Group strategy of doing business differently was providing support to ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's requirements and also a large number of other vendors, which include some of the better known companies in the automotive segment. The Munjal have gone much beyond the conventional definition of a cillarisation, making it a point to extend technical and managerial support to these ancillaries. These ancillary units are manned by friends, relatives, exemployees or close associates of the Munjal family since the Group patriarch, Mr. Brij Mohan Lall, " never wanted to march alone."
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EMPLOYEE POLICY
Another Striking feature within the Hero Group is the commitment and dedication of its workers. There is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities, further ahead of the industry norms. Long before other companies did so, Hero was giving its employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but also for the immediate family members.
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DEALER NETWORK
The relationship of the Munjal with their dealers is unique in its closeness. The dealers are considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000outlets, the Munjal have a formidable distribution system in place. Sales agents from Hero travels to all the corners of the country, visiting dealers and send back daily postcards with Information on the stock position that day, turnover, fresh purchases, anticipated demand and also competitor action in the region. The manufacturing units have a separate department to handle dealer complaints and problems and the first response is always given in 24 hours.
FINANCIAL PLANNING
The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on financial and raw material management and a low employee turnover.
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RESEARSH METHODOLOGY
The methodology used in conducting the research work on HERO HONDA with major emphasis on its sales and marketing strategies involve the following steps: Why I have selected HERO HOND only? I have selected hero Honda for my summer training because it is the company that is growing day by day. It has maximum market share with comparison to its competitors. And it is the company that gives highest sales and it is also the highest two- wheeler manufacturer. Defining the problem and deciding research objectives: Defining the objective is the most important part of any study process. Proper defining of the problem is a must for proceeding further with the research process. The type of study to be carried out, the questions to be raised, the sampling procedure to be followed, and the data to be collected, all depends on a correct understanding of the problem. Also, by clearly focusing on the real problem, the research job can be simplified and completed with the minimum cost, effort and data. Identified problem or the objectives of the research discussed in the report are:
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Secondary data
The sources from which secondary data was collected: Press releases of the company. Newsletters and In-house journals. Brochures and detailed descriptive leaflets Magazines like Business World, Outlook, Auto India, etc. Websites such as www.herohonda.com, www.google.com. These were the sources from which secondary data has been gathered. Most of the information presented in this report was extracted from the above data sources.
Primary data
Collection of primary data was conducted by visiting the people preparation of the report.
Research approach
It means the way by which the information was collected. Visiting the various places of Delhi, getting the questionnaire filled by different individuals. Beside this, frequent visit to the showrooms of the company was of great help to conduct the analysis and research work.
Contact methods
Instrument or Data collected Forms: It is the method by which data is gathered. It could be done through various instruments like questionnaires, observations, getting information from the staff members of the agency, contacting to the motor mechanics was sufficient enough to conduct the study.
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Collection of information
The primary information was collected by face-to-face and direct interviews with the peoples and the customers. They provide the relevant information regarding the profile of the company as compared to the other company in the Indian market. Most employees suggested visiting companys web site, as it was not possible for them to spare time from their busy schedules. The secondary sources of information were various web sites of the companies, Newspapers & magazines such as the times of India, The Hindustan Times, Business world, Auto India, etc.
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Chart Title
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20 18 16 14 12 10 8 6 4 2 0 Series1 Series2
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PURCHASE OF BIKE
Almost 94 % of the respondents say that they have purchased the bike by cash. Only 6% of the respondents say that they have purchased their bike through bank loans.
% of Respondents 94 06
100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 1 2
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DECISION INFLUENCED BY
Maximum no. of the Respondents have taken decision to buy the bike on their own. After that their friends and parents influenced them. Influencer Parents Self Friends Relatives Others
60
% of Respondents 16 54 18 08 04
50
40
30
Series1
20
10
0 PARENTS
SELF
FRIENDS
RELATIVES
OTHERS
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LIMITATIONS
1. Research work was carried out in Agra only the finding may not be applicable to the other parts of the country because of social and cultural differences. 2. The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population. 3. Shortage of time is also reason for incomprehensiveness. 4. The views of the people are biased therefore it doesnt reflect true picture.
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Hero Honda is spreading its wings and widening its business horizon to reach and serve customers at new centers in the year ahead. The company services are backed by a highly motivated and technology driven team to achieve customers need, product expertise and geographic reach. The study is oriented towards the concept of different brands offered by Hero Honda and its competitors to its customers. The company has endeavored to move fast in providing market solution, which maximize customer needs and convenience, using multiple delivery channels in composing the agency network, service centers, lower service cost and increased efficiency.
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BIBLIOGRAPHY
INTERNET:
www.herohonda.com
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