Marketing Management > Hero Honda Marketing By Robin & Group

ICLES MOTILAL JHUNJHUNWALA COLLEGE OF ARTS, SCIENCE & COMMERCE

AMLENDU ROYE MARG, SECTOR 9A,VASHI, NAVI MUMBAI-400703

PROJECT OF
MARKETING MANAGEMENT

PROJECT ON

SUBMITTED TO
PROF.RAKESH YADAV.

SUBMITTED BY
ANUPSINH.B.DESHMUKH ANIL KOTADIA AMAN MITTAR ROHIT TRIPATHI ROBIN KOLI

DATE OF SUBMITTION
14TH Sept 2004

ACKNOWLEDGEMENT

OUR project wouldnt have reached its current shape without the sound guidance of our respected teacher prof. RAKESH YADAV and also like to thank our friends & our college
for its Support.

Without their co-operation and support our project would have been impossible.

CERTIFICATE

This is to certify that

ANUPSINH.B.DESHMUKH-404 ANIL KOTADIA-414 AMAN MITTAR-421 ROHIT TRIPATHI-435 ROBIN KOLI-412 Of SYBMS of JHUNJHUNWALA ICLES MOTILAL

COLLEGE have successfully completed the project Of marketing management Have secured grade. .. For their performance.

SIGNATURE

PROF. Rakesh yadav.

DATE:

index

SR NO 1 2 3 4

PARTICULARS BOARD OF DIRECTORS MISSION STATEMENT THE HERO GROUP HISTORY

PG NO 1 2 3 4

5 6 7 8 9 10 11 12 13

HERO HONDA SPLENDOR FEATURES OF HERO HONDA SPLENDOR MARKETING STRATEGY MAINTENANCE STRATEGY 4PS 4SS SWOT ANALYSIS ENVIRONMENTALLY AND SOCIALLY AWARE PRODUCTS BIBLIOGRAPHY

5 6 7 8 9 12 15 16 17

BOARD OF DIRECTORS

Chairman Managing Director Joint Managing Director Director Director Director Director Director Director Director Director Director Director Director

Mr. Brijmohan Lall Munjal Mr. Pawan Munjal Mr. Akio Kazausa Mr. Shinichi Nakayama Mr. Satyanand Munjal Mr. Om Prakash Munjal Mr. M P Wadhawan Mr. S P Virmani Mr. O P Gupta Mr. M. Sudo Mr. S Toshida Mr. N N Vohara Mr. Pradeep Dinodia Gen. ( Retd.) V P Malik

MISSION STATEMENT

WE, AT HERO HONDA, ARE CONTINUOUSLY STRIVING FOR SYNERGY, BETWEEN TECHNOLOGY SYSTEM AND HUMAN RESOURCES TO PROVIDE PRODUCT AND SERVICES THAT MEET THE QUALITY, PERFORMANCE AND PRICE ASPIRATION OF OUR CUSTOMERS.WHILE DOING SO, WE MAINTAIN THE HIGHEST STANDARD OF ETHICS AND SOCIAL RESPONSIBILITIES, CONSANTLY INOVATE PRODUCT AND PROCESS.AND DEVELOP TEAMS THAT KEEP THE MOMENTUM GOING TO TAKE THE COMPANY.TO EXCELLENCE IN THE NEW MILLENIUM

THE HERO GROUP

Hero, the brand name synonymous with two-wheelers in India, is a multiunit, multi-product, geographically diversified, Group of Companies - the reflection of the steely ambition and indomitable grit of the Munjal Family ... Trace the saga of the "Hero" - through more than 45 years of Enterprise and Achievements, of Vision and Planning.

HISTORY THE LEGEND OF HERO HONDA

What started out as a Joint Venture between Hero Group, the world's largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the World's single largest two-wheeler Company. Coming into existence on January 19, 1984, Hero Honda Motors Limited gave India nothing less than a revolution on twowheels, made even more famous by the 'Fill it - Shut it - Forget it ' campaign. Driven by the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% 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.

This is proved by the company's sales over the years:

1985-86 1989-90 1998-99 1999-00 2000-01 2001-02 2002-03

43,000 units 96,200 units 5,30,600 units 7,61,210 units 10,29,555 units 14,25,195 units 16,77,537 units

Customer satisfaction, a high quality product, the strength of Honda technology and the Hero group's dynamism have helped HHML 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, investment in equipment and facilities and through and through efficient management."

HERO HONDA SPLENDOR

Designed with your comfort in mind, with a contoured low-slung seat, specially designed handlebar and a strong double-cradled tubular frame. This bike epitomizes riding pleasure. Truly, the limousine of Indian two wheelers.

Features of Hero Honda SPLENDOR

Engine Displacement Clutch Type Clutch Primary Clutch Secondary Transmission Final Drive Ignition 4-stroke, single cylinder , air - cooled, OHC 97.2cc Manual Multi-plate wet 4-speed constant mesh Roller chain Electronic

Starting Frame Suspension (Front ) Suspension (Rear) Dimensions( L*W*H) Wheel Base Ground Clearance Kerb Weight Tyres:Front/Rear Max. Power Max.Speed Fuel Tank Capacity

Kick starter Tubular double cradle type Telescopic hydraulic fork Spring loaded hydraulic type with both side action 1970*720*1040mm 1230mm 159mm 109 kg 2.75"*18"-4PR/2.75"*18-"-6PR 7.5 PS@8000 rpm 85 kmph 10.51tr (1.4 1tr reserve)

Marketing strategy
With the research information gathered from the market, the next step of hero Honda is to develop a market strategy.

Better or wider distribution: the distribution network of the splendor plus is excellent. Their distribution divided into four zones.

Lower price: the price of the splendor is affordable for the middle class also and the maintenance is also low.

Modified product (splendor +): modification has been done to improve the sales

Better value for the consumers money (passport schemes ): additional facilities are given to the customers like issuing passports and giving free insurance

More dependable product or service: splendor is been always trusted than any other bike in its segment

Customer support service : the after sales service of hero Honda has been always satisfactory.

MAINTENANCE strategy
Proper care & maintenance are paramount for trouble free operation & optimum performance of your motorcycle. Hero Honda offers 6 free services on all its motorcycles. You should avail these services within a year or as per the below mentioned km range, whichever is earlier First Free service 500-750 km Second Free service Third Free service 2500-2800 km 5000-5500 km

Fourth Free service

7000-7500 km

Fifth Free service 9000-9500 km Sixth Free service 11000-11500 km

You should ensure that each paid service is availed within 60 days from date of service or as per the recommended schedule.

FOUR Ps OF MARKETING
Products and Services
Designed with your comfort in mind, with a contoured low-slung seat, specially designed handlebar and a strong double-cradled tubular frame. This bike epitomizes riding pleasure. Truly, the limousine of Indian two wheelers. The Hero Honda Splendor is an excellent example of the term. Designed with your comfort in mind, with a contoured low-slung seat, specially designed handlebar and a strong double-cradled tubular frame. This bike epitomizes riding pleasure. Truly, the limousine of Indian two Wheelers. The 4-stroke, 100 cc driving machine from Hero Honda. A bike that will stop you right in your tracks. Both by its look and performance. True to its Honda lineage. Consider its newly designed engine that gives you

unprecedented fuel efficiency. While still delivering a punchy 7.5 PS. Next, feel the ergonomics of it as you cruise along. A well-cushioned low-slung seat helps you rest and ride at the same time. Not to mention the suspension, that works so well that probably you'll never find out what happens between the tyres and that bumpy road. Needless to add, owning a Splendor means a lot of other things too. Like getting all the admiring looks. Or the pride you feel in riding a bike that meets the pollution control standards of the next decade, today. That's Splendor. A bike that will be called a turning point in motorcycling. So check it out. Tomorrow has arrived, in style!

Promotion and Advertising

Hero Honda has roped in film actor Hrithik Roshan, Captain of Indian Cricket team Sourav Ganguly, Mohammad Kaif, Harbhajan Singh, Zaheer Khan, Yuvraj Singh and Virender Sehwag as its brand ambassadors. They will endorse the company products, attend corporate and brand events and help promote its "We Care" campaign comprising safety riding, environment and friendliness. THE product line of the hero Honda says

Hero Honda desh ki dhadkan

Advertising of hero Honda is done through The yellow pages A press release Sponsoring a civic event or activity

Eg: Sponsored 'India-England Women's Cricket Series' in 2002

Sponsored 'India-England Test Series' in 2001 Sponsored '7th World Cup Cricket tournament' at England in 1999

The newspaper Billboards or posters Flyers or handbills Direct mail advertising The radio

Pricing
Determining price levels and pricing policies is the major factor affecting revenue. Factors such as the demand for the good, the market price, and customer responsiveness to price changes influence the price levels at hero honda. Other factors such as a convenient location or more personalized service allow hero Honda to charge a competitive price. Making sure your price is standards, however, by checking to see what competitors' prices are of similar product. SPLENDOR Prices (in Rupees) City Bangalore Calcutta Chennai Delhi Mumbai Pune Ex. Showroom Price 40,589 40,613 40,723 40,076 41,831 40,322 On Road Price 45,140 46,000 44,813 42,287 45,763 44,122

Place
The manufacturer and wholesaler must decide how to distribute their products. Working through established distributors or manufacturers' agent generally is most feasible for small manufacturers. Small retailers should consider cost and traffic flow as two major factors in location site selection, especially since advertising and rent can be reciprocal. In other words, low-cost, low-customer traffic location means you must spend more on advertising to build traffic. The nature of the product or service also is important in location decisions. If purchases are made largely on impulse (e.g., flavored popcorn), then high customer traffic and visibility are critical. On the other hand, location is less a concern for products or services that customers are willing to go out of their way to find (e.g., restaurant suppliers). The recent availability of highly segmented mailing lists (purchased from list brokers, magazines

S4 Concept
Sales
Our each and every packing has a hologram, which can be identified by the features like: Sales

SALES PERFORMANCE August'03 August'04 Domestic Sales Exports 143164 2566 187265 4370 April'03August'03 731762 15898 April'04August'04 984963 21449

Service
Our constant endeavors is to support the company's mandate of providing highest level of customer satisfaction by taking CARE of your motorcycle service & maintenance through our vast network of more than 1000 committed dealers & service outlets spread across the country. Our state-of-the-art authorized workshop have well laid out standards for motorcycle servicing supported by fully equipped infrastructure in terms of quality precision instruments , pneumatic tools & a team of highly trained service technicians. Having your motorcycle serviced at an authorized workshop ensures highest standards of service quality and reliability.

Customer Service Hero Honda keeps on taking always-new initiatives to maintain its leadership on service as well as enhance customer satisfaction level on an ongoing basis. Some of the new initiatives related to customer service are as follows: Service Advisors at dealership Service Plus Scheme for customers Pre Paid Reply cards

Automated Mobile Workshops

Mega Millennium Camps

On the job training programmers Local Mechanics Training

T here are many more initiatives, which we keep on taking along with our dealers to keep our customers always in our mind on top priority

Service Your Bike Hero Honda has always taken a lead in terms of defining service standards in two wheeler industry with an aim to provide "Total Customer Satisfaction" for their valuable customers across the country and also internationally. We are constantly endeavoring to improve the quality of our service facilities at our Dealerships. The first and foremost step to achieve this was creating Automated Workshops at our Authorized Dealerships and Service Centers across the country.

SPARES - FEATURES & BENEFITS

The performance and safety of your bike not only depends on the worldclass design and workmanship assured by Hero Honda but also on the parts being used in the assembly line. Even the finest components manufactured need replacement from time to time. And to ensure the continued impeccable performance of your vehicle,

the spare parts should also be made and replaced as good as the components fitted by Hero Honda. To ensure this, we manufacture and procure the replacement parts according to the specifications and standards set by Honda motor co and us. As a responsible Hero Honda bike owner, we recommend that for your safety, long life and high performance of your bike, use only Hero Honda genuine parts.

Safety
Safety Education to motorcycle customers shall be an integral part of Hero Honda's motorcycle delivery process at the showroom. Customers shall be educated on Safe Riding techniques through various audio visual aids. Safety Instructors shall be imparting riding skills as well as education to the customers. Dealers shall also conduct a major programmed in their respective towns with the association of local traffic police on a regular basis on safety education and correct riding techniques.

SWOT ANALYSIS of splendor.

Strength:

- reputation of hero Honda brand - Finest engine

- Affordable price, Good average (80 km/ph) - Low maintenance Available at 0% of interest

Weakness:

- young generation is moving towards fast moving Bikes. - Old design - No disk breaks - Low power Light bike use for cities and not for highway

Opportunities:

- change in design - Change in marketing style Rise in petrol price

Threats:

- TVS victor - LML freedom BAJAJ Boxer.

An Environmentally and Socially, Aware PRODUCT

At Hero Honda splendor, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a high-quality service to all of its customers, Hero Honda splendor takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues. Hero Honda splendor has been strongly committed not only to environmental conservation programmers but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business: businesses must not grow at the expense of mankind and man's future but rather must serve mankind. "We must do something for the community from whose land we generate our wealth." A famous quote of Mr.Brijmohan Lall Munjal, our CMD

BIBLIOGRAPHY.

1} WWW.GOOGLE.COM 2} WWW.HEROHONDA.COM 3} WWW.HONDA.COM