Product Life Cycle

Introduction

Hero Honda, the ‘Worlds No.1’ two wheeler

manufacturer for the past 5 years in a row is a joint
venture between Hero Group of India and Honda of Japan.

Together they have not only created the world's single largest two
wheeler company but also one of the most successful joint ventures
 Introduction
• Hero Honda CBZ was launched in early 1999 by Hero Honda Motors
India Ltd.
• It was the first sports oriented 4-stroke bike.

• Sporting an original Honda 156.8 cc engine, it made good 12.8PS of

power which was sufficient enough to propel it to 110 km/h.
• The styling of the bike was a scaled version of the famous Honda CB
series. Sufficient mid-range torque ensured a 0–60 km/h (0-37 mph)
in just 5 seconds.
• The over-square engine, that met Euro1, was fed by a Keihin slide
type carburetor with accelerator pump for better pick-up.
 Features
• It makes use of a larger spring operated nozzle to provide a richer
fuel air mixture into the engine for better acceleration.
• An air injection system injects fresh air into the exhaust port, to
meet the emission norms.
• CBZ was one of the first Indian 4-stroke bikes to feature a 5-speed
gearbox. Some two stroke bikes such as Yamaha RD350 had a six
speed box, while Yamaha RX-135 & Suzuki Shaolin had 5-speed
gearboxes.

• The close-ratio gearbox provided superior acceleration and roll-on

capabilities. The gearbox was well sorted to provide best
performance out of the peaky power plant which also lacked top-
end refinement.
Growth

51%
51%
Hero Honda
26%
Bajaj
11%
TVS
5%
Yamaha 3%
LML 2%
Kinetic 1%
Royal Enfield
1%

Majetic
 Maturity
• CBZ went unchanged more or less for 5 years.
• But in 2004 a new variant called CBZ* (star) featuring new
graphics and Electric self-start was introduced to boost sales.

• The bike did not feature any engine or performance upgrades.

• The only change was in its carburetor, it was changed from the
Sliding Type carburetor to a conventional CV carburetor, which
increased the fuel-efficiency but hampered the pick-up, the
greatest feature of the bike.
 Decline
• The bike was discontinued after 2005 September.
• Reason for decline can be enumerated as:
- low mileage
- competitor entry in 150 segment
- Fit and Finish
The fit and finish of this bike is still not the Hero Honda
benchmark. The welding job on the Chassis looks a little shoddy.
Also the heat shield on the exhaust does not blend seamlessly.
 Re-Launch of CBZ

• CBZ Xtreme is a 150 cc bike from Hero Honda Motors which is the
successor of the legend Hero Honda CBZ.
• The bike was introduced in the year 2007.

• Except for a mild resemblance to the older CBZ's headlamp, the

new CBZ Xtreme has little else in common.
• But the bike followed the grand success made by Hero Honda
CBZ.
 Design
• The turn indicators have been integrated into the headlamp housing
and the tail lamp cluster features a segmented stop and brake light
section with the turn indicators built into a single unit that wraps
around the brake light’s bottom side. Also LEDs have been used
replacing the conventional bulbs. The split hand grips for the pillion
rider serves in providing a different look.

• The new tinted cowl adds to the improved aerodynamics and reflects
the glamour of bike's instrumentation.CBZ Xtreme sports has an
asymmetric instrument panel with carbon matte finish. There are
analogue gauges, including an engine-rpm meter, a speedometer and
fuel gauge, in addition to high beam, turn and neutral indicators
 Looks & Styling

• The CBZ Xtreme is certainly not the best looking bike in the
Market. It’s Looks and Styling may not be to everyone’s liking. The
front mini fairing is still a little conventional. If we ignore the front
fairing things start looking better. The instrument panel  The fuel
tank looks sporty. Hero Honda has kept the use Graphics stickers
to the minimal. This gives a very sporty look to bike. The Split
Grab rails at the back is also a first and looks very exotic.
 Engine & Performance
CBZ seems to have borrowed the engine from Unicorn and Achiever (they
both share the same engine base). Only the change is that the engine has
been retuned for performance. This works in the favor of CBZ as the engine is
tried and tested. Above all the engine is a Honda engine (they do not know
how to make bad engines). So reliability is not an issue. The engine returns
14.4 bhp power output. This figure is the best in 150cc segment. Higher
power also evident from the acceleration the bike gives. It reaches from 0 to
60 Kmph in just above 5.5 seconds. This again is one of the best acceleration
figure in it’s segment. The bike feels very stable at high speed and while
cornering. Top speed is around 160 Kmph. The bike has 5 speed gear box.
 Fuel Efficiency

Low Fuel efficiency was the reason why the original CBZ did not
hit the Bullz-Eye. The new CBZ X Treme does away with this
mistake. It returns a Mileage of 50 Kmph in hard city riding and 60
Kmph on Highway. This is very commendable considering, this
bike is basically a performance bike.
Hero Honda Profit Analysis
 Conclusion
• The Hero Group's phenomenal growth is the
result of constant innovations, a close watch on
costs and the dynamic leadership of the Group
Chairman, characterized by an ethos of
entrepreneurship, of right attitudes and building
stronger relationships with investors, partners,
vendors and dealers and customers.
Presented By
Sagar
Vasumathi