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A Project Report on Hero Honda

Submitted By:- Chandan Kumar

(IMG- 09-11/ 005)


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A project cannot be said to be the work of an individual. A project is a combination of views

and ides, suggestions and contributions of many people. I am extremely thankful to my
project guide who gave me an opportunity to do this project report as a part of the curriculum.
I wish to express my sincere gratitude to Hero Honda Company Staff & dealers whose
valuable information throughout my project work. Also I wish to thank all the faculty
members gave me some of their valuable time to fill up the project report, without which the
project study wouldn¶t have been a success.


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6o study the marketing mix of Hero Honda Company

6o study its life cycle initial stage, growth and maturity.

6o study various promotional strategies and know about the current strategies keeping in
mind the cut throat competition and arrival of Honda Company in India.

6o focus on comparative study of different products of Hero Honda company Different range
of Products; their success and failure.

6o study overall financial performance of Hero Honda Company^

6o find out the effectiveness of customer relationship management in the hero Honda.


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Contents

r ‘xecutive Summary
r Introduction
r 6he Board of Directors of the Hero Honda Group Comprises
r Hero Honda Mission
r ision, Objectives
r Achievements Awards and Accolades
r Auto Industry- A Review
r Classification of the Industry
r Segmentation, 6argeting & Positioning
r Marketing Communications
r Dps of Marketing
r Corporate Social Responsibility (CSR)
r SWO6 Analysis
r Comparative Marketing Strategies
r Hero to 6ake a Call on Honda ties Before 201D
r Core Competencies
r Conclusion
r 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. 6he 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.
6he 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. 6he 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. 6he 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% are satisfied with the
availability of spare part and remaining D0% 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. 6his will surely
attract more customers. 6his will help to increase the existing goodwill and position in the
market. 6he 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

HISTORYABOUT THE CHAIRMAN

Brijmohan Lall Munjal ± Seeding a Dream

"Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying.
6he founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation
entrepreneur. He is a man who started small, dreamt big and used a combination of grit and
perseverance to create one of the country's largest corporate groups and the World's No.1
6wo Wheeler Company. Instinctive from a young age, Brijmohan Lall made a rather unusual
start in life. Around the time when the freedom movement in India was taking shape in the
late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in
Kamalia (now in Pakistan). He was only six years old then. 6hus began an extraordinary tale
of courage and perseverance. Brijmohan began his business story after partition in 19D ,
when he and his brothers relocated to Ludhiana. 6he family set up a company that provided
poor people with basic transport (cycles). 6hree decades later, as India evolved, he added a
second crucial chapter which visualized affordable and technologically superior transport to
millions of middle class Indians. 6he rest is history.

Building Relationships When Brijmohan and his brothers started out, there was no concept of
organized dealer networks. Companies just produced, and most dealers functioned like
traders. Brijmohan changed the rules of the business by trusting his gut instincts; introducing
business norms that were ahead of their time, and by investing in strategic relationships.
Brijmohan built a series of bonds and networks with hundreds of family members, vendors,
dealers and employees. Much like the Japanese keiretsu system, these networks are now the
glue that holds the Hero Group together. "6hanks to the relationships that we have nurtured
so passionately in the Hero Family, the younger generations of some of our bicycle dealers
have become dealers of Hero Honda. 6hese relationships have survived through generations -
through bad times and good times'' the patriarch now reminiscences. Besides bonding with
his vendors and dealers, Brijmohan has been personally responsible for kindling a spirit of
entrepreneurship amongst his employees, and today, D0 of his former employees are
successful entrepreneurs.

Staying Ahead 6hough not technically qualified in the conventional sense, few of his
contemporaries have understood the dynamics of technology better than Brijmohan Lall has.


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He could always visualize the applicability of technology before others could. For example,
in the 1980s, when all two-wheeler companies in India opted for two-stroke engine
technology, Brijmohan preferred a four-stoke engine - a technology that dramatically
increased fuel efficiency and reduced maintenance costs. 6his technology was one of the
biggest reasons for Hero Honda's stupendous success. 6ime and again, Brijmohan managed
to steal a march over his industry peers. For example, when Honda Motors of Japan was
looking for a collaborator in the 1980s, the Hero Group was not high up the pecking order
initially as there were other more eligible and established suitors. Yet it didn't take long for
the astute Japanese to realize that the Hero Group and Honda had much more in common
than earlier perceived; there a sharp focus on financial and raw material management, and
employee turnover was low. Honda officials were also amazed to find that the Munjals were
already practicing "Just-in-time-inventory" at the time (JI6). It turned out that Brijmohan
Lall's aspiration to provide cheap transportation to India's poor by default ensured lean and
costeffective operations. 6his in turn increased vendor efficiency and led to near-zero
inventories.

A Corporate Citizen A frugal upbringing and a value system modeled on the famous Gurukul
system - which stresses the sanctity of the teacher-pupil relationship - imbibed in Brijmohan a
strong sense of social commitment and responsibility. 6here is a special place in his heart for
Ludhiana, the city where he took roots. 6oday, Ludhiana is a modern, bustling city, but
Brijmohan has played no mean role in its evolution. Several schools and educational
institutions in Ludhiana owe their existence to the Munjal family. 6he Ludhiana Stock
‘xchange owes its existence to Brijmohan's vision as does the Ludhiana Flying Club. He's
also set up the not-forprofit Dayanand Medical College and Hospital-an institute now rated as
one of the best medical colleges in India, in terms of infrastructure, quality of staff and
alumni profile. In and around Dharuhera, near the first Hero Honda plant, Brijmohan and his
family have left their stamp of philanthropy. 6he Raman Kant Munjal Foundation - which
Brijmohan set up in memory of his eldest son, today runs a higher secondary school and a
very modern and well-equipped 100-bed hospital at Dharuhera. 6he group has also adopted
numerous villages and provides education, vocational training, drinking water, roads,
streetlights and sewerage.


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The Board of Directors of The Hero Honda Group Comprises of : -

Mr. Brijmohan Lall Munjal Chairman

Mr. Pawan Munjal Managing Director

Mr. Akio Kazausa Joint Managing Director

Mr. Kazumi Yanagida Director
Mr. Satyanand Munjal Director
Mr. Om Prakash Munjal Director
Mr. M P Wadhawan Director

Mr. S P irmani Director

Mr. O P Gupta Director
Mr. M. Sudo Director
Mr. S 6oshida Director

Mr. N N ohara Director

Mr. Pradeep Dinodia Director
Gen. ( Retd.)  P Malik Director


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Hero Honda Mission

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. 6his mission is what drives Hero Honda to new heights in excellence
and helps the organization forge a unique and mutually beneficial relationship with all its
stakeholders.

VISION

Hero Honda now the leader in the two wheeler industry. Leaders are not born, they evolve
over time. It all started on the auspicious. ³Baisakhi Day´ the 13th of April 198D, when the
Hero Honda Motor Company joined hands. On its journey to take on the No. 1 morale, Hero
Honda created some prominent milestones«.. 6his leadership has been achieved only
because of its philosophy to excel in all areas. In fact, passion to excel is a credo of the entire
Hero Honda family and is a way of life in Hero Honda. 6he changing Scenario of increasing
competition and the entry of new brands has made the credo even more relevant. It serves as
a constant reminder to ensure excellence in providing service to the customer. 6hey are
providing outstanding customer service. It is in keeping with Hero Honda¶s own passionate
commitment to provide ultimate customer satisfaction. 6oday, they consistently meet and
exceed all requirement on quality, cost and delivery.

OBJECTIVES

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. 6his mission is what drives Hero Honda to new heights in excellence
and helps the organization forge a unique and mutually beneficial relationship with all its
stake holders.


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ACHIEVEMENTS AWARDS AND ACCOLADES

Year Awards & Recognitions 2009

‘6 Awards for Corporate ‘xcellence - Hero Honda is the winner of the ³Company of the
Year" award for 2008 - 09. ND6 Profit Business Leadership Award 2008 - Hero Honda
Wins the Coveted "ND6 Profit Business Leadership Award 2008" 6op Gear Design
Awards 2008 - Hunk Bike of the Year Award ND6 Profit Car India & Bike India Awards -
ND6 ³iewers¶ Choice Award´ to Hunk in Bike category India 6imes Mindscape and
Savile Row ( A Forbes Group enture ) Loyalty Awards - ³Customer and Brand Loyalty
Award´ in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail
‘xcellence (Strategies and Solutions of business innovation and transformation) - Best
Customer Loyalty Program in Automobile category ND6 Profit Car India & Bike India
Awards - Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year
6NS oice of the Customer Awards:

‡‡‡

2008

No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No.
premium motorcycle CBZ Xtreme

2007

6he ND6 Profit Car India & Bike India Awards 200 in the following category:

‡‡‡

Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc
category) "Bike 6echnology of the Year" - Glamour PGM FI

"Auto 6ech of the Year" - Glamour PGM FI by Overdrive Magazine. "Bike of the Year" -
CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine ³Most 6rusted
Company´ , by 6NS oice of the Customer Awards 2006. CD Deluxe rated as "No 1
standard motorcycle" by 6NS oice of the Customer Awards 2006. 2006 Adjudged th 6op
Indian Company by Wallstreet Journal Asia (6op Indian 6wo Wheeler Company). One of the


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8 Indian companies to enter the Forbes top 200 list of world¶s most reputed companies. No. 1
in automobile industry by 6NS Corporate Social Responsibility Award.

Best in its class awards for each category by 6NS 6otal Customer Satisfaction Awards 2006:

‡‡‡

Splendor Plus (‘xecutive) CD Deluxe (‘ntry) Pleasure (Gearless Scooters)

Splendor & Passion - 6op two models in two wheeler category by ‘6 Brand ‘quity Survey
2006. Adjudged th 6op Indian Company by Wallstreet Journal Asia (6op Indian 6wo
Wheeler Company). 6op Indian company in the Automobile - 6wo Wheeler sector by Dun &
Bradstreet - American ‘xpress Corporate Awards 2006. Hero Honda Splendor rated as
India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006. Certificate
of ‘xport ‘xcellence for outstanding export performance during 2003-0D for two-wheeler &
three- wheelers - Complete (Non SSI) by ‘ngineering ‘xport Promotion Council.6he ND6
Profit Car India & Bike India Awards 2006 in the following category:

‡‡‡‡‡

Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150
cc category) Bike of the Year - Glamour (up to 125 cc category) ND6 iewers' Choice
Award to Glamour in the bike category

2005

Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the
'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI
National Award for ‘xcellence (Second) in Cost Management 200D in the private sector
category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent
wealth creator for the period 1991-2005.

2004

Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10
Indian companies). GC Level 1 (Highest Rating) by CRISIL for corporate Governance.
Adjudged as the Best alue Creator - Large Size Companies 2003-0D by 6he Outlook
Money. Corporate ‘xcellence Award 200D by Indian Institute of Materials Management.
Adjudged as the Organization with Innovative HR Practices by H6 Power Jobs for HR


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‘xcellence. ICSI National Award for ‘xcellence in Corporate Governance 200D by 6he
Institute of Company Secretaries of India.

2003

Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top 10
Indian companies). Most Respected Company in Automobile Sector by Business World. Bike
Maker of the Year by Overdrive Magazine.

2002

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading
Companies Award (Dth Rank amongst the top 10 Indian companies). Company of the Year of
‘6 Awards for Corporate ‘xcellence. Ranked Dth in 'Overall Best Managed Company'
category, ranked 3rd in 'Best Financial Management' and 'Best Operational ‘fficiency'
category, ranked 6th in 'Overall Best Investor Relations' category, by Asiamoney. Highest
Wealth Creating Company of the Year Award by the Money. GC Level 1 (Highest Rating)
by CRISIL for Corporate Governance.

2001

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading
Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of 6hree
Leaves Award for showing Corporate ‘nvironment Responsibility in the Automobile Sector
by Centre for Science & ‘nvironment.

1999 National Productivity Award for the Best Productivity Award in the category of
Automobile & 6ractor presented by ice President of India. 1995 6he Analyst Award 1995
presented to Hero Honda Motors Ltd. on being ranked 9th amongst the most investor
rewarding companies in India. 1995 National Award for outstanding contribution to the
Development of Indian Small Scale Industry (NSIC Award - Presented by President of India).
1991 ‘conomic 6imes-Harvard Business School Award for Corporate Performance to Hero
Honda Motors Ltd.


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AUTO INDUSTRY- A REVIEW

IN6RODUC6ION

6he Rs. 5500 crore Indian two wheeler segment is the second largest market fin the world
after China. India¶s two wheeler production is the third largest in the world after Japan and
China. India has a welldeveloped two wheeler market with around 25 million households
owning two-wheeler. 6he Indian two wheeler industry made a modest beginning in the early
1950 when Automobile Product of India ( API ) started manufacturing scooter in India. Until
1958. API and ‘nfield( motorcycle) were the only two in production. In 19D8, Bajaj auto
began trading in imported espa scooter and the three ± wheeler- finally, in 1960¶s. it set up
shop to manufacturer them in technical collaboration with piggaio of Italy. 6he agreement
expired in 19 1. In the initial stages, the scooters segment was regulated regime, foreign
company was not allowed to operate in India, and waiting time for getting Bajaj scooters was
as high as 12 years. Java, and escort. While the ‘nfield bullet was a four strokes bike, the
Java and Rajdoot were two-strokes bikes. 6he motorcycles industry was originally dominated
by ‘nfield with 350 cc bikes. 6he motorcycles industry was cc segment. 6he two wheelers
segment was opened up to foreign competition in the mid 1980¶s which saw the entry of the
Japanese manufactures into the country.

COMPANY PROFILE
6he Hero Honda story began with a simple vision ± the vision of a mobile and an empowered
India, powered by Hero Honda. 6his vision was driven by Hero Honda's commitment to
customer, quality and excellence, and while doing so, maintain the highest standards of ethics
and societal responsibilities. 6wenty five years and 25 million two wheelers later, Hero
Honda is closer to fulfilling this dream. 6his vision is the driving force behind everything that
we do at Hero Honda. We understood that the fastest way to turn that dream into a reality is
by remaining focused on that vision. 6here were many unknowns but we kept faith, and
today, Hero Honda has been the largest two wheeler company in the world for eight
consecutive years. Our growth has kept compounding. 6he company crossed the ten million
unit milestone over a 19-year span. In the new millennium, Hero Honda has scaled this to 15
million units in just five years! In fact, during the year in review, Hero Honda sold more two
wheelers than the second, third and fourth placed two wheeler company put together. With
Hero Honda, the domestic two wheeler market was able to show positive growth during the
year in review. Without Hero Honda, the domestic market would have actually shrunk. Over


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the course of two and a half decades, and three successive joint venture agreements later,
both partners have fine-tuned and perfected their roles as joint venture partners. What the two
partners did was something quite basic. 6hey simply stuck to their respective strengths. As
one of the world's technology leaders in the automotive sector, Honda has been able to
consistently provide technical knowhow, design specifications and R&D innovations. 6his
has led to the development of world class, value - for- money motorcycles and scooters for
the Indian market. On its part, the Hero Group has taken on the singular and onerous
responsibility of creating world-class manufacturing facilities with robust processes, building
the supply chain, setting up an extensive distribution networks and providing insights into the
mind of the Indian customer. Since both partners continue to focus on their respective
strengths, they have been able to complement each other. In the process, Hero Honda is
recognized today as one of the most successful joint ventures in the world. It is therefore no
surprise that there are more Hero Honda bikes on this country's roads than the total
population of some ‘uropean countries put together! 6he company's meteoric growth in the
two-wheeler market in India stems from an intrinsic ability to reach out and come closer to its
customers, with every passing year. Hero Honda's bikes are sold and serviced through a
network of over 3500 customer touch points, comprising a mix of dealers, service centres and
stockists located across rural and urban India. Hero Honda has built two world-class
manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most
sophisticated plant at Haridwar has just completed a full year of operations. It is difficult to
imagine that all this has happened in the span of just two and a half decades! 6he best is yet
to come. During the year in review, Hero Honda powered its way in a market that, for all
practical purposes, was feeling the full effects of the economic slowdown in India. With an
economic recovery now clearly on the cards, Hero Honda is all set to ride into another
summit. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly puts it,
"We pioneered India's two wheeler industry, we've steered it through difficult times; now it is
our responsibility to set the pace again.''

New Models 6he company has a large portfolio of brands, with the moneyspinners being
mainly Splendor Plus (the world's largest selling bike) and Passion. However, the company
claims it was the launch of the 150cc CBZ and 225cc KARIZMA which established Hero
Honda as an inspirational brand. "6he launch of CBZ and KARIZMA got us into a different
league altogether. Although the sales are just about 3,000 a month, it made us an overall bike
company´, Hero Honda would launch a new model of the KARIZMA by the end of current
year, the Managing Director, Mr. Brijmohanlal Munjal, said. Meanwhile, the company is yet


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to decide on the location of its proposed Fourth manufacturing unit. ³6he feasibility study is
on'', he said, adding that the new plant was likely to come up in the next 18 months. New
launches are likely to help Hero Honda gain a market share in the coming quarters. Hero
Honda Motors Ltd, has launched a new 100-cc four-stroke bike, CD deluxe and Dawn is
likely to be phased out of the market once the new model sells ``10,000 plus'' units per
month. Sales Performance Hero Honda went against the grain and created a growth trajectory
all of its own. Sales of the company grew by over 11 per cent in volume terms and in value
terms; they grew by over 19 per cent. ‘ffectively, this helped the company end the year with
a market share of around 60 per cent. 6his robust performance helped the company increase
earnings margin 120 basis points²a remarkable feat, considering that elsewhere in the world,
the automobile industry went through its worst year in recent history.

Hero Honda¶s performance in its silver jubilee year helped it retain its position as the world¶s
largest two wheeler company for the eighth year in a row. It also helped the company cross
the 25 million unit mark²becoming the first company in India to reach this milestone. Last
year, two new models were launched, namely CBZ X6R‘M‘ and HUNK to address super-
style and economy segments. Passion pro has found its position firm amongst Indian models,
only next to Splendor, the largest selling bike in the world in terms of sales performance.
CBZ was re-launched as CBZ X6R‘M‘, in April 200 , with changes and value additions to
cater to specific needs of the customers. Reportedly CBZ X6R‘M‘ is doing well in its
segments and has sold over 10,000 units in the initial months itself. Hero Honda has targeted
a sale of over 3 million bikes for the year 2009-10. 6his effort is supplemented by a major
launch this year, in October end; this bike will have some exclusive features and will be in
the 200cc plus range. 6here are some ambitious programmes of launching a new range of
bikes with technical support from Honda in the coming years. With a slew of such measures
the capacity available at present locations can at best support two-million production target at
the existing plants. 6he company, therefore, is looking at the possibility of setting up a third
plant to meet the future demand and for which techno-economic study is in progress.

New Initiatives Customer and customer satisfaction is the purpose of our being an entity. 6o
increasingly understand him and make him part of our ongoing business. Customer related
initiative has been the increase of warranty period to three years since July 2008. 6his has
attracted a great deal of customer attention. During the year the company has added nearly a
hundred dealerships and SSPs. In terms of sheer numbers, the network has grown by 16%
during the year 2008-09. We would endeavor to increase our reach to every corner of this
country. Plans for the future In the previous year, the domestic two-wheeler industry entered


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a period of de-growth. However, this was arrested in 2008-09, largely on the back of Hero
Honda's performance. After the blip of last year, the two-wheeler industry went back to a
growth phase, largely driven by Hero Honda and exports. 6he industry clocked total volumes
of 8.5 million during the year in review, a growth of 5 per cent compared to a fall of 5 per
cent in the previous year. 6he pace of growth was lower in the domestic market, where the
industry clocked sales of .D3 million, a rise of only 2.60 per cent. 6his, however, was a
significant improvement over previous year when the industry had shrunk by 8 per cent.
Motorcycles continue to constitute the largest chunk of the two wheeler industry, and during
the year in review, accounted for four fifth of sales. Interestingly, for the second year in
succession, scooters increased their share in the two-wheeler pie from 1D per cent to 16 per
cent. 6his is clearly a trend reversal from the last 10 years, where the share of scooters in the
two-wheeler pie had been shrinking. Changing lifestyles among women, and the introduction
of feature-rich, high-quality scooters possibly has much to do with the revival in demand

6he entry segment ± made up of basic 100 cc bikes -Had started slowing two years ago, and
during the year in review, sales in this segment were down by more than 15 per cent. 6his
could be attributed to the fact that deluxe segment bikes have become affordable on account
of a D per cent excise cut, 1 per cent reduction in CS6 and the special package of reduction in
excise duty in December, which most manufacturers passed on to the consumers. 6he deluxe
segment-made up of value for money and feature-rich bikes in the 100-125 cc category-grew
by 15.2 per cent. 6he 125-250 cc category-grew at 8.8 per cent. 6he pace of growth has fallen
from last year's levels. 6here is no doubt that the higher interest rates have brought down
growth. Nevertheless, this segment was still able to clock a growth rate in high single digits
mainly because of the excitement caused by a slew of new models that came into this
segment during the year. 6he bigger story, of course, is that buyers in small-town India and
rural India, as well as employees of the state and Central government, were relatively less
affected by the slowdown, and this benefitted the two wheeler industry.


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The legend of Hero Honda

What started out as a Joint enture 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, 198D, Hero Honda
Motors Limited gave India nothing less than a revolution on two-wheels, 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 D8% 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.

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, and investment in equipment and facilities
and through and through efficient management."

History Of Company
1984
6he Company was Incorporated on 19th January, at New Delhi. 6he Company Manufacture
motor cycles up to 100 cc capacity. 6he Company was promoted by Hero Cycles (P) Ltd.
(HCPL).

6he Company entered into a technical-cum-financial collaboration agreement with Honda

Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish
complete technical information and know-how and trade secrets and other relevant data.
Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc
range. Its most attractive features are fuel efficiency and its light weight. CD-100 will be
equipped with electronic ignition system, illuminated speedometer, D speed gear box, neutral
and flasher indicators, etc. 15 No. of equity shares subscribed for by the promoters, etc. In
November, 119,99,985 No. of equity shares issued at par of which 1,99,985 shares reserved
for allotment as under:
(i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur


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Chand Investments (P) Ltd.
(ii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and
(iii) 9,59,98 shares to friends and association of promoters. Out of the balance
D8,00,000 shares, 2,D0,000 shares were reserved for subscription by the
employees of the Company and 96,000 shares by business associates. 6he
remaining DD,6D,000 shares were offered at par for public subscription during
November.
1985
6he Company embarked on its 2nd phase of expansion of increasing its installed capacity
from 1,20,000 to 1,50,000 vehicles per annum by the addition of several critical aliminium
and steel components.
1986
36,00,000 rights equity shares issued at par in prop. 3:10.
1987
6he Company offered 6,00,000 - 15% secured redeemable non-convertible debentures of Rs
100 each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares.
Another 3,00,000 - 15% debentures were allotted to retain oversubscription. 6hedebentures
were to be redeemed at a premium of Rs 5 per debenture on the expiry of the th year from
the date of allotment of the debentures
3, 5,000 rights equity shares issued at par in prop.3:10
1989.
6he Company introduced a new model "Sleek" during July.850 No. of equity shares
forfeited.
1990
6he Company was planning to launch a new model motor cycle-CD 100 SS sutiable to
semi-rural conditions. In the domestic market the Company was reported to have a market
share of D6%.- 850 forfeited shares reissued.
1994
6he Company proposed to expand the capacity of existing plant at Dharuhera to 2,D0,000
nos. per annum. Another plant with an installed capacity of 1,50,000 nos. per annum at
Gurgaon Industrial ‘state was being set up.
6he Company issued 39, 9,500 bonus shares to the existing shareholders in the ratio of 1:D.
6he Company also issued 28,55 number of fractional coupons representing 1D,250 shares
against which shares shall be allotted to presenting the same for consolidation and allotment.
6he Company's production and turnover increased to 1,83,D90 motorcycles and Rs.D83.85


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crores respectively due to growth in demand for two wheelers and declining inflation.
1995
1D,D20 bonus shares issued by way of consolidation of fractional coupons. - A new 6echnical
Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan for the period
up to the year 200D which includes technology related to models of higher ‘ngine
displacement. 6he Company allotted 39, 9,500 No. of ‘quity Shares of Rs. 10/- each as
Bonus shares on th February, by way of capitalization of General Reserves.
6he Company had issued 2855 No. of Fractional Coupons representing 1D.250 shares
against which the Shares shall be alloted on presenting the same for consolidation and
allotment.
1997
Hero Honda Motors has launched its newest motorcycle, the Street, a 100 cc bike designed
for use in congested urban traffic conditions. Hero Honda Motors Ltd (HHML) has set up a
new motorcycle plant in Gurgaon, near Delhi for the manufacture of the Honda Super Cub
100 cc step thro bike. Hero Honda has set up a new state-of-the-art plant, heralding a new
phase of development of motorcycle industry in India, to provide the most modern and
technologically advanced production facilities.
Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has set up a
plant in Brazil for manufacturing hero winner scooters.
A new step thru model `Street-100' with unique feature was launched on 2Dth January.
1998
6he company proposes to increase the share capital to 5 crore equity shares of Rs. 10 each, D
lakh cumulative redeemable preference shares of Rs. 100 each and D lakh cumulative
convertible preference shares of Rs. 100 each with power to increase or reduce it from time to
time. 6he company further proposes to capitalise Rs. 19,96,8 ,500 from general reserve to
share capital through issue and allotment of bonus shares. Altogether, 1,99,68, 50 fully paid
bonus shares will be allotted and distributed to members of the company holding equity
shares of the company in the proportion of one bonus share for every fully paid equity shares
of Rs.10 each. Motorcycles major Hero Honda is considering entry into scooters in
collaboration with partners, Honda Motors, after the Japanese company decided to walk out
of Kinetic Honda, their scooter venture with the Firodias of Pune. Honda Motors recently
pulled out of its joint venture with the Firodias in which it held a 51 per cent equity stake.
Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML) have
signed a five-year licence and technical assistance agreement under which KHML will


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continue to receive the technical knowhow, critical vehicle parts and access to Honda's
markets even after the sale of Honda stake in KHML to Kinetic ‘ngineering Ltd (K‘L).
- 6he Company changed the paradigm in two-wheelers by launching the most powerful
and fast bike- CBZ with a unique feature of 6ransient Power Fuel Control (6P‘C) system.
23,962,500 bonus shares issued in prop. 1:1.
1999
Hero Honda Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have signed a
Memorandum of Understanding (MoU) for financing of Hero Honda motorcycles.
6he company, a joint venture between Honda Motor Company of Japan and Hero group of
India to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to 38.6
per cent during the current fiscal. Leading two-wheelers manufacturer Hero Motors has
formed a joint venture with Briggs Stratton of US to develop and manufacture four-stroke
engines for mopeds and scooters in India, a top company. Honda Motor Company of Japan
has decided to re-enter the scooter market in India as also foray into three-wheelers in a joint
initiative with its existing joint venture company Hero Honda Motors Ltd.
2000
Hero Honda Motors Ltd. and 6ata Finance Ltd. have signed a national tie-up agreement. 6he
Company is the largest manufacturer of motorcycles in the country. 6he Company will
relaunch its stepthru Stree Smart on Baisakhi 13th April. Hero Honda Motors Ltd (HHML),
has launched an upgraded version of the existing step-through motorcycle - the Hero Honda
Street. 6he Company was ranked as the 9th Highest alue Creator among 12 industry groups
within the Bombay Stock ‘xchange top 100 companies over a five year period (199D-99).
2001
Hero Honda Motors Ltd. has launched a new 100cc motorcycle named `Passion'. 6he
Company has secured shareholders' approval for splitting one equity share of Rs 10 each into
five equity shares of Rs 2 each in the ratio of 1:5.
Hero Honda Motors Ltd. has become the largest seller of motorcycles amongst all Honda
companies and ventures in the world by selling one million motorcycles during the current
financial year. Credit rating Agency Crisil has reaffirmed outstanding `AAA' rating assigned
to the proposed Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper
programme and fixed deposit programme of Hero Honda Motors.
Promoter-Chairman of the country's largest motorcycle manufacturing company, Hero Honda
Ltd, Brijmohan Lall Munjal has bagged the prestigious ‘rnst & Young ‘ntrepreneur of the
Year (‘OY) award here on September 2 .


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CLASSIFICATION OF THE INDUSTRY

6he two-wheeler segment can be categorized into the scooter, mopeds, and motorcycles.
Motorcycles: this segment has shown the best performance in the recent years. 6he market
leaders in this section are Bajaj Auto. 6S, Mahindra, Hero Honda. [6he splendor is the most
popular segment among motorcycles.]

Two Wheeler Industry

It wasn¶t an easy year for the two wheeler industry. Rising interest rates and the economic
slowdown resulted in delayed consumer decision making and a rise in loan defaults. Over the
course of the year, banks withdrew financing facilities from satellite towns. 6he share of
financing, which had increased rapidly to 50-60 per cent of the total retail sales by early
200 , has now come down to below 30 per 6his came as a major setback for the two-wheeler
industry. Ongoing government investments very clearly emphasis inclusive growth through
improved connectivity, job-creation and improving quality of life. 6he rural road outlay has
been upped by close to 60 per cent, the budget for the Urban Renewal Mission has been hiked
by 8 per cent, and fund allocation to the ongoing National Highways program has been
upped by 23 per cent. Importantly, India has added fresh impetus to its flagship job creation
program for rural India: the National Rural ‘mployment Guarantee Scheme. During 2008-09,
this scheme, which provides 100 guaranteed days of work a day for the country¶s rural poor,
provided employment opportunities to more than DD million households last year; a year ago,
33 million households were covered. During the year, there have been important
developments in two wheeler industry. 6he competition has strengthened though there are
hardly any new entrants into the industry. 6here is an increasing emphasis on price and this
has led to cost cutting efforts all across cent. the industry, thereby, making the customer an
ultimate beneficiary. 6he trend also saw introduction of new motorcycles with capacity
ranging from 100 to 250cc bikes. We anticipate that many more new models will be launched
during the year and provide customers plenty of choice at competitive prices. Businesses
cannot consistently grow at 25-30 per cent. ‘ach business has a tendency to taper and plateau
after attaining a particular size. An annual growth rate of 10-12 per cent over a period of time
is extremely healthy. 6he 6CS study rankings are conducted at the motorcycle segment level
to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in
their respective segments for 6CS are: Hero Honda splendor plus (best standard motorcycle
segment); Bajaj pulser (best executive motorcycle segment); Hero Honda karizma (best


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premium motorcycle segment); and Royal ‘nfield Bullet ‘lectra (best cruiser motorcycle
segment). "6he relatively low score for the executive segment indicates that most
manufacturers have fallen short of meeting the high expectations of these buyers,".

Production, sales growth of the industry

6he two-wheeler companies have been operating at high capacities due to high growth rates
between 2009 and 2008. 6he growth is expected to lead to increase in the capacities from
present 52 lakh units to 65 lakhs per annum in the year 2009-10, whereas the actual
production estimates by that period at an estimated growth rate of 18% is only 60 lakhs.
Charts showing two-wheeler industry growth rates Demand

In India the two-wheeler provide an easy and popular mode of personal transport for the
middle classes. With public transportation system being inadequate and ineffective the
demand for the two wheeler is likely to rise. 6he two-wheeler sales are expected to touch the
5 million mark by the end of the decade as against the annual sales of 35,D9,2 1 in 2008-09.
6echnology With liberalization and the increasing competition. 6he two- wheeler industry
has witnessed technological changes. 6he four- stroke engine is being introduced in place of
the traditional populations and fuel inefficient two stroke engine. 6he smaller capacity engine
with the electronic fuel injection is also being used. Bajaj auto is now feeling the need to
increase its technological competence. Wit the competition cashing in on the technological
competence for their collaborators. ‘mphasizes being laid on lighter and fuel- efficient
vehicles. A class of vehicle having fuel efficiency of a moped and sleekness and style of the
motorcycles called scooter is growing. 6he vehicles offer a fuel efficiency of 60-65 km p/h.
6hey enter into new segment, Bajaj Auto has come out with 6S with Scooty pep and Hero
Honda has come out with a Pleasure and upgraded version of sleek. Government policy 6he
excise duty on two-wheeler , which has previous 10 percent to 30 percent according to the
engine capacity, was rationalized is only two categories size. 15 percent for 5 cc engine
capacity and 25 percent for above 5 cc engine capacity the excise duty structure has been
left untouched since the 1993-9D budget.

6he Indian two-wheeler industry is experiencing a major shift in its shape and structure. 6he
established players in the industry are taking a hard look at their portfolio of products and are
in the process of reshuffling them to meet the expectations of customers. 6he beneficiary is of
course the consumer, who has an increased array of products to choose from. 6he last four-
five years have brought about a great change in the consumer preferences for two-wheelers.
6he market leaders of yesteryears are being driven to maintain their leadership position in the


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forthcoming years. 6hose who have had a great going in the last few years are fighting hard
to retain their new supremacy. 6he two-wheeler industry is perhaps the most happening place
in terms of new models launched, upgraded products and innovative marketing techniques.
Gone are the days of regulation when the production of scooters and motorcycles was limited
to two or three brands and the number of products produced was decided by the Government;
today the Indian two-wheeler market is highly competitive with numerous players who offer
anything and everything a consumer demands and that too at affordable price. From a sellers
market where one had to wait for a scooter for 12 years to the days when you can just walk
into any showroom and drive out in the vehicle of your choice, the market of two-wheelers in
India has come a long way. But this is only the beginning of the transformation.

Marketing and The Distri ution

Like any other emerging country, India experienced the knock-on effects of the global crisis
during the year in review. 6he effects were felt through the monetary, financial and real
channels. Drying up of global finance impacted from the middle of the fiscal impacted
domestic capital finance; and corporate earnings came off peaks. In April 2009, Reserve
Bank of India predicted that the Indian economy's growth for 2008-09 would slow to 6.6 per
cent, breaking an excellent five-year growth sequence. 6here were two dimensions to the
economic slowdown. In the first half, inflation ran into double digits as a result of the global
crude shock and the global food grain shortage. 6o control inflation, the RBI clamped down
on money supply, and reduced liquidity in the economy. By the time inflation started coming
under control, domestic interest rates started shooting up. Meanwhile, the global crisis
erupted, putting further pressure on liquidity levels. By October 2008, slowdown was clearly
apparent in export-intensive sectors, both in the manufacturing and service side. By
December, the slowdown turned into de-growth. 6he cutback in demand from ‘urope and the
US was so sharp that even a competitive rupee, which devalued by around 12 per cent during
the year, couldn't act as a buffer. By December 2008, the growth momentum of the first six
months was lost. Planned investment projects were shelved; live projects faced a shortage of
funds as credit flows dried up. As money became dearer, pay packets became slimmer and
risk aversion grew both from the demand and supply side. Compulsions of coalition politics
at the Centre and the impending Lok Sabha elections didn't help either, and slowed down
reforms and implementation of projects, particularly in critical sectors like roads, ports and
power. 6he worst hit was the manufacturing sector. From the second half of the financial
year, the index of industrial production contracted on three occasions, remained close to zero


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on two occasions, and was mildly positive only once. 6wo ±Wheeler Financing 6hough two-
wheeler are the most preferred from of transport in India, the fact remains that it is a lower
end market product. Most two-wheeler manufacturer like Bajaj Auto and kinetic engineering
have set up their own finance company since organized financiers do not think the returns are
particularly attractive. 6he argument given by some financiers is that the price of a Yamaha
or Hero Honda is so high that people prefer to buy a second hand car instead. 6his is
particularly true of small town where people desire to own a car and they have the means the
two wheeler is then only a second vehicle for the family. MARK‘6 M‘CHANICS: Since
1985, when the first Hero Honda it has been and instant hit. A mileage miser with just about
adequate performance further backed by image of Honda and Hero Cycles brand of
aggressive marketing, it climbed up the sales chart outselling every other motorcycle by ten
of thousands every year. Over the years, company has received its share of accolades,
including the National Association of India Award against 200 contenders.


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SEGMENTATION, TARGETING & POSITIONING

From the current segmentation, targeting & positioning and consumer surveys we found that
our client has targeted the following segments

Ƈ Congested areas of urban cities.

Ƈ Males/Females between the age group of 18-36
Ƈ Middle class people , mostly officials & executives 6he client analysis from our
questionnaire it was found that our client has targeted the right segment HHML is
overlooking one feature in bike which is its low maintenance cost and reliability (i.e. less
chances of breakdown) which is absent in its competitors. 6herefore, in order to meet the
sales target, two option are available with the client, one is to redesign the bike and second is
to reposition the bike as ³Bike with one time investment´. Since redesigning of bike may
involve a big task and huge investment therefore we recommended repositioning the bike.

Growth 6he business growth of Hero Honda has been phenomenal throughout its early days. 6he
Munjal family started a modest business of bicycle components. Hero Group expanded so big that by
2002 they had sold 86 million bicycles producing 16000 bicycles a day. 6oday Hero Honda
has an assembly line of 9 different models of motorcycles available. It holds the record for
most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was
established in joint venture with Honda Motors of Japan in 198D, to manufacture motorcycles. It is
currently the largest producer of 6wo Wheelers in the world. It sold 3 million bikes in the year 2005-
2006. Recently it has also entered in scooter manufacturing, with its model PL‘ASUR‘ mainly aimed
at girls. 6he Hero Group has done business differently right from the start and that is what has helped
them to achieve break-through in the competitive two-wheeler market. 6he Group's low key, but
focused, style of management has earned the company plaudits amidst investors, employees,
vendors and dealers, as also worldwide recognition. 6he growth of the Group through the
years has been influenced by a number of factors:


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Just-in-Time

6he Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-
time inventory. 6he Group boasts of superb operational efficiencies. ‘very assembly line
worker operates two machines simultaneously to save time and improve productivity. 6he 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.. 6his 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

Ancillarisation
An integral part of the Group strategy of doing business differently was providing support to
ancillary units. 6here 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. ‘mployee Policy: Another Striking feature within the
Hero Group is the commitment and dedication of its workers. 6here is no organized labor union and
family members of employees find ready employment within Hero. 6he 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 6ravel Allowance (L6A). ‘xtra benefits took the form of medical
check-ups, not just for workers, but also for the immediate family members.

Dealer Network
6he relationship of Hero Group with their dealers is unique in its closeness. 6he dealers are
considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000 outlets,
and 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.
6he manufacturing units have a separate department to handle dealer complaints and problems
and the first response is always given in 2D hours.


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Financial Planning
6he 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.
Quality
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. 6he Group also employs the services of independent
experts from around the world to assist in new design and production processes.

Diversification

6hroughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at
diversification. A considerable level of backward integration in its manufacturing activities
has been ample 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.
6hen 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 19 8. 6hen came Hero Motors which introduced Hero Puch, in collaboration with
global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in
198D to manufacture 100 cc motorcycles. 6he Hero Group also took a venture 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 6elecommunication
6he 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 a culture of entrepreneurship, of
right attitudes and building stronger relationships with investors, partners, vendors and
dealers and customer


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MARKETING: AN INTRODUCTION

Marketing is a social and managerial process by which individuals and groups obtain what
they need and want through creating, offering and exchanging products and values with each
other. In this way marketing is a business function that identifies customer needs and wants,
determines which target market the organization can serve best, and designs appropriate
products, services, and programs to serve these markets. Marketing is much more than
isolated business function it is the philosophy that guides the entire organization. 6he goal of
marketing is to create customer satisfaction profitably by building-value laden relationship
with important customers as well as fulfill certain organizational objectives. People
throughout the various kinds of organizations-product or service, profit or non-profit,
domestic or global, small or large, need to know how to define and segment a market and
how to position themselves strongly by developing need satisfying products and services for
chosen target segment. 6hey must know how to price their offerings to make them attractive
and affordable and how to choose and manage intermediaries to make their products
available to customers. And they need to know how to advertise and promote products so
customers will know and want them. 6he objectives can be achieved through the
implementation of suitable marketing strategy by the organization. It is the marketing logic
that is formulated keeping in mind the needs of the consumers and also strategies of the
competitors. 6he D factors affect it are:

Product - 6he tangible offer to the market, which includes the product quality, design,
features, branding and packaging. Price ± 6he amount of money that customer pays for the
product. 6he price of the product should commensurate with its perceived value. If does not,
the buyers will turn to competitors products. Place ± Includes the various activities the
company undertakes to make the product accessible and available to a large number of target
customers. Promotion ± 6he fourth marketing mix tool, includes all the activities the
company undertakes to communicate and promote its products to the target market. It
consists of advertising, sales promotion, public relations, and direct and online marketing.
Faced with unrelenting global competition, and ever more powerful and demanding
customers, companies across the world have come to realize that their old ways of operating
± their long standing methods for developing, making, selling and servicing products ± are no
longer adequate. 6hey have also discovered that their existing tools for improving operations
are not making a dent in persistent problems of high cost, poor quality and inadequate


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service. In order to address these problems, these companies are taking measures more
radical than they have ever taken before. 6hey have begun to re-engineer, they have ripped
apart their old ways of doing things and started with clean sheets of paper. Hero Honda has
effectively evolved remarkable marketing strategies for its DP¶s. It is because of this that
Hero Honda has been able to come out a niche for itself. But before we discuss the strategies
for the DPs separately, it is imperative that we know about the marketing strategy. 6his is
what keeps the Hero Honda going and have reinforced its leadership in the motor bike
segment.

MARKETING COMMUNICATIONS

³Walk the 6alk´ though Advertising, sales Promotion, Public Relations, through an emerging
Media, including the Web these things are done through :-

Ƈ Promotional Methods

Ƈ Promotional Mix

Ƈ Advertisement

Ƈ Sales promotion

Ƈ Public Relations

Ƈ ‘vent Management

Ƈ Media Management

Ƈ Budgeting

Ƈ Measuring ‘ffectiveness

And much more««««««.. 6he internet¶s greatest potential has been superbly exploited
by the small business ventures to reach customers directly. 6he market had virtually opened
quickly to market changes by providing accurate market intelligence, faster communication
and greater planning time. 6his helped to reduce the market volatility the dealer to understand
the significance and value of e-commerce and benefits of embracing the latest in information
technology, and initiate concrete steps to capitalize on it. 6he marketing is also done through
sales promotions, Advertisement, publicity, etc. Strong dealer relationship expands the scope
of the commercial paper programme in an organization and Hero Honda is doing that. 6hey
are doing the communication through newspaper, magazines and television channels, etc.


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4PS OF MARKETING

PRODUCTS

Hero Honda Cd-dawn

Now is the time for you to drive in style the new Hero Honda Cd-dawn D.N.A in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Cd-dawn price in
India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as
an ideal city commute. 6he Cd-dawn Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda Cd-dawn Review here!

Hero Honda CD Dawn is a beginner's bike well tested on Indian roads and proven in city
conditions. Hero Honda CD Dawn is a no-nonsense bike that's all about price and utility. Its
conservative looks appeal to people who dislike fancy bikes overwhelming their personal
presence. Backed by the reliability of the world's largest motorbike manufacturer, the Hero
Honda CD Dawn offers improvements upon earlier Hero Honda 100 cc versions. 6he Hero
Honda CD Dawn offers a higher ground clearance and other enhanced features without
compromising on price, mileage, or reliability. 6he bike commands a good resale value.
Looks

È 6ubular double cradle frame looks sleek and masculine

È Great color options (Black, Red, Dark Maroon etc.)
È Unique 3-D graphics and knee recesses look awesomely rugged
È Stylish muffler protector creates a trendy image
È Powerful and round headlight with multifocal reflectors
È 6he strongly contoured fuel tank enhances masculine appeal
È Body colored visor blends gracefully with other graphical elements
È Multi-reflector taillight gives off warm glows
Control

È D-stroke single cylinder 9 .2cc engine with standard Hero Honda reliability
È 6ransmission is D-speed constant mesh
È Max Power is 5.DD KW @ 8000 rpm
È Max 6orque is 0. 9kgm@5000 rpm
È Muffler protector provides safety of the co-rider


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È Higher ground clearance at 165 mm makes it easier to ride on different terrain
È 6he kick start is reliable and usually responds on the first kick
È Ignition is CDI (capacitor discharge ignition)
È Clutch is smooth -Multiplate, Wet type
È Gear shifting is extremely user-friendly, and helpful for any novice
È Internal expanding shoe type front and rear brakes builds reliability
È Light weight and easy to handle, easy on slow learners
Comfort

È Knee recesses on the fuel tank enhances posture comfort

È User-friendly rear shock-absorbers give a pleasant ride
È Broader seats distribute rider weight more evenly and increases comfort
È Hydraulic fork type front suspension provides reliable shock absorption
È Swing arm with 2 step adjustable hydraulic shock absorber at the rear increases comfort on
the pillion
È Larger reflectors for the headlamps enhances safety
È New padlock for theft security
Mileage and Economy

È 6his low maintenance bike comes with two years warranty from the manufacturer
È 10.5 lt. fuel tank is good enough for 600 + kilometers on a single fill
È Mileage: users report 65 kmpl under worst conditions and 5 kmpl usual after first
servicing
È New console with fuel gauge helps being aware of fuel economy
È 6hinner tyres reduce road contact area and friction, increasing fuel efficiency
È Clutch is smooth and needs no maintenance for at least 6 months

Hero Honda CD-Deluxe

Now is the time for you to drive in style the new Hero Honda CD-Deluxe D.N.A in India.
Any Hero Honda Bike is a great product to covet and own. 6he Hero Honda CD-Deluxe
price in India is reasonable and the Bike surely appeals to all youngsters as a personal choice
and as an ideal city commute. 6he CD-Deluxe Bike has a neat look along with a great rev-up
and acceleration. 6ake a few minutes to read the new Hero Honda CD-Deluxe Review here!

Hero Honda CD Deluxe is a good beginner's bike and convenient for city conditions. Hero
Honda CD Deluxe sales have grown by 23 per cent between January-September 200 , within


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which time the industry actually declined by 1D per cent in the entry segment. Backed by the
reliability of the world's largest motorbike manufacturer, the Hero Honda CD Deluxe has
been successful in building a robust market for itself. Improving on earlier Hero Honda 100
cc versions, the CD Deluxe offers a higher ground clearance and other enhanced features
including a padlock provision for theft security.
Looks

È 6ubular double cradle frame looks sleek and masculine

È Unique 3-D graphics and knee recesses look awesomely rugged
È Stylish muffler protector creates a trendy image
È Body colored full rear cowl and sporty 3D graphics is distinctly urban
È Aluminium die-cast rear handle matches the space-age
È New stylish visor with trapezoidal multi reflector headlight gives owner's pride
È 6he strongly contoured fuel tank enhances masculine appeal
È Body colored visor blends gracefully with other graphical elements
È Alloy wheels (optional) are trendy and flamboyant
È Multi-reflector taillight gives off warm glows
Control

È D-stroke single cylinder 9 .2cc engine with standard Hero Honda reliability
È 6ransmission is D-speed constant mesh
È Max Power is 5.6 KW @ 500 rpm
È Max 6orque is 0. kgm@ 500 rpm
È Muffler protector provides safety of the co-rider
È Higher ground clearance at 165 mm makes it easier to ride on different terrain
È 6he kick start is reliable and usually responds on the first kick
È Ignition is CDI (capacitor discharge ignition)
È Clutch is smooth -Multiple Wet type
È Gear shifting is extremely user-friendly, and helpful for any novice
È Rear tyres have a good grip pattern
È Internal expanding shoe type front and rear brakes builds reliability
È Light weight and easy to handle, easy on slow learners
Comfort

È Knee recesses on the fuel tank enhances posture comfort

È User-friendly rear shock-absorbers give a pleasant ride


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È Broader seats distribute rider weight more evenly and increases comfort
È Hydraulic fork type front suspension provides reliable shock absorption
È Spring loaded, hydraulic type, two step adjustable shock absorber at the rear increases
comfort on the back seat
È Larger reflectors for the headlamps enhances safety
Mileage and Economy

È 10.5 lt. fuel tank is good enough for 600 + kilometers on a single fill
È New console with fuel gauge helps being aware of fuel economy
È Alloy wheels (optional), if used, require little maintenance
È Mileage: users report 65 kmpl under worst conditions and 5 kmpl usual
È Clutch is smooth and needs no maintenance for at least 6 months

Hero Honda Splendor Plus

Now is the time for you to drive in style the new Hero Honda Splendor Plus in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Splendor price in
India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as
an ideal city commute. 6he Splendor Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda Splendor Review here!

Hero Honda Splendor Plus is one of the largest selling bikes in India. It sports several
improvements over the old splendor including improvised head and tail lamps and graphics.
6he suspension system is universally acclaimed. 6his lightweight bike is good for city
conditions
Looks

È 6ubular double cradle body frame looks as strong and masculine as the earlier Splendor
È ‘ye-catching graphics
È 6rendy multi-reflector head and tail lamps
È Aluminum grip replaced by the classic iron bar

Control

È Max speed is 85-90 kmph

È Accelerates to 60 kmph in seconds


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È D stroke, single cylinder, air-cooled OHC engine
È Max power of .5 bhp @8000 rpm
È ‘lectronic ignition
È 109 kg kerb weight makes this bike easy to control and handle
Comfort

È Powerful 35w headlight gives bettor control for night-riding

È Classic iron bar is more reliable than previous aluminum grips
È 6elescopic hydraulic fork suspension works perfectly
È Hydraulic spring loaded type with both side rear suspension is comfortable for pillion
riders
È 1230 mm wheel base gives better road grip
È 159 mm ground clearance is good for any terrain
È Powerful disc brakes at front provides excellent stopping power
È Low engine noise
Mileage and Economy

È 60-65 kmpl in city conditions

È Around 0 -80 kmpl on highways
È Low maintenance and high resale value
È Reliable after-sales support

Hero Honda Splendor NXG

Now is the time for you to drive in style the new Hero Honda Splendor NXG in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Splendor price in
India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as
an ideal city commute. 6he Splendor Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda Splendor Review here!

6he Hero Honda Splendor NXG is a new age bike in Hero Honda's 100 cc stable. Stunning
looks, economic performance, and a multitude of features backed by Hero Honda's reliable
support network, makes this a good choice for the city commuter. 6he Splendor NXG adds to
the prevailing Splendor variants with little improvisations like a high intensity beam that does
not depend upon bike speed and provides reliable view in city nights or on rough terrain
where the going is slow.


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Looks

È New fairing and visor combo

È Powerful & stylish trapezoidal mutlireflector headlight
È New design fuel tank with knee grip
È New body panels and sleek body graphics
È Large & stylish tail light
È Attractive aluminum die cast rear grip
È chrome fuel tank lid
È five-spoked aluminium-alloy wheels in the top-end variant of the NXG
È five attractive colors and seven stripe combinations
Control

È 6op speed of 90 kmph

È D stroke 9 .2 cc engine
È New engine which delivers power of . PS at 500 rpm
È Better power & torque at lower engine RPM for comfortable city riding
È Optimum gear ratios for better pickup
È Mutli reflector headlight that provides better visibility even at lower speeds
È Gear: D Speed
È 6he fuel switch is easier to operate than usual switches with thin levers
È 160mm ground clearance
Comfort

È Upright and comfortable riding posture

È ‘asy ride both for the rider and those on the pillion
È 6elescopic fork type hydraulic front suspension
È Hydraulic rear suspension shock absorbers
È A new -shaped instrument cluster with trip meter
È 160mm ground clearance
È Stable handling
Mileage and Economy

È Average mileage is kmpl

È 6ank Capacity: 10.3 Lts


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Hero Honda Passion Plus

Now is the time for you to drive in style the new Hero Honda Passion Plus in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Passion price in India
is reasonable and the Bike surely appeals to all youngsters as a personal choice and as an
ideal city commute. 6he Passion Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda Passion Review here!

6he Hero Honda Passion Plus is a bike meant for the executive city commuter. It's a good
bike in the 100 cc range that delivers decent mileage, looks, and high resale value. 6his
improved version of the Hero Honda Passion comes with several improvements over its
earlier versions and gives an easy ride and easy handling.

Looks

È 6ubular double cradle frame

È Strongly contoured fuel tanks
È 9 new two-tone body colors
È Great new graphics
È Black painted engine and chain case & front forks
È two tone front fender
È heat protector on the muffler
È body colored mirrors
È white dial instrument cluster
È aluminum die cast rear grip
È multi-reflector headlight and winkers
È Optional 5 spoke black alloy wheels
Control

È maximum speed of 85kph

È four-stroke, air-cooled, single cylinder engine that generates a piston displacement of
9 .2cc
È engine is consistent in performance and reliable
È maximum power of .5 PS @ 8000 rpm
È optional front disc brake for improved braking


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È broad rear tyre
È Stable riding and easy handling - very well balanced
È Smooth and easy gearbox, false neutrals are unheard of
È Kick start
Comfort

È ‘asy posture without back strains

È telescopic hydraulic forks at the front
È swing arm with adjustable hydraulic dampers at the rear
È adjustable rear cushion
È wider pillion grip
È lockable seat and helmet holder
È luggage space with locking facility
Mileage and Economy

È fuel tank capacity of 12.8 liters

È 50 - 55 Km/liter in city
È 60-65 Km/liter on highways
È Low maintenance
È High resale value

Hero Honda Splendor Super

Now is the time for you to drive in style the new Hero Honda Splendor Super in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Splendor price in
India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as
an ideal city commute. 6he Splendor Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda Splendor Review here!

6he Hero Honda Super Splendor is meant for the city commuter who is upgrading from 100
cc bikes. It's easy to handle, gives comfortable vibration free rides, and provides reasonable
mileage. A good suspension system is easy on the rider and those on the pillion. 6his is not a
bike to race with, but one you can depend on to get you to your destination and back in the
city safely and economically.


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Looks

È 6ubular double cradled body frame

È Black core color with orange stripe gives killer looks
È Large rectangular headlamp with a 35w halogen lamp
È 6inted translucent visor
È Masculine fuel tank adorned with graphics
È Symmetrical body panels on both sides
È Steeply angled bikini fairing
È Chrome plated steel grab rail
È Black matt finished silencer
È Black silencer contrasted by shiny chrome heat shield
Control

È Self start is quite responsive, kick start version is also available

È Powerful pick-up
È 125 cc quantum core engine with proven reliability
È No user complaints about engine overheating
È 9 bhp max output at 000 rpm
È nimble and makes for easy twists and turns on potholed roads ery little engine knocking
È ‘xcellent brakes, drum brakes in kick start version, disc brakes in self-start version
È Smooth gears - D speed with all downshifting gears
Comfort

È ‘xcellent suspension and doesn't give back problems

È 6elescopic hydraulic fork type front suspension
È Hydraulic shock absorbers with a rectangular section swing arm at the rear
È ‘ngine is refined and tuned to commuting and not racing
È Comfortable riding posture both for the rider and for the pillion rider
È Well cushioned wide seats
È Instrument cluster has a large speedo dial which is easy to read
È User friendly electric switches
È Push-cancel indicator switch
È Well positioned horn switch and pass light flasher
È Fatigue free and vibration free long rides


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Mileage and Economy

È Large fuel tank gobbles up at least 12 lt and saves frequent visits to the petrol pump
È Users report an on-road mileage of 55 plus kmpl in city and 60 plus kmpl on highways that
sometimes reaches more than 0 kmpl
È Slimmer tyres reduce friction and enhance mileage
È Good tyre quality
È 6hree years or D0, 000 km warranty

Hero Honda Glamour

Now is the time for you to drive in style the new Hero Honda Glamour D.N.A in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Glamour price in
India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as
an ideal city commute. 6he Glamour Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda Glamour Review here!

With Hero Honda Glamour, the name tells all. Bikers who prefer stylish looks in bikes to
come with four essential attributes - reasonable price, ease of handling, good after-sales
maintenance support and acceptable resale value - love this exceptionally good-looking bike.
6he new Hero Honda Glamour looks all the better with enhanced graphics and other details
and continues to sell to the discerning. Hero Honda Glamour is available in self-start (129 kg)
and kick-start (125 kg) versions

Looks

È 6ubular double cradle type body frame

È 6rendy isor
È Large macho petrol tank with eye-catching graphics
È ‘legant 6ri-pod head panel
È Black alloy wheels
È Black painted engine chain and case
È Body colored rear grip
È Body colored louvers on visor
È Body colored rear view mirror
È Catchy design of smoke exhaust and guard


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È Mind-blowing red and black visual contrasts
È oluptuous front fairing
È Dual-tone theme on the front mudguard and chain guard
È 6he side and rear panels blend well with each other
Control

È Maximum speed is 120 kmph

È Powerful pick-up increases with servicing
È Quantum core air-cooled, four-stroke and single-cylinder engine with a displacement of
12D. cc
È Max power 6. 2 KW @ 000 RPM
È Self/Kick start, Weight: 125 kg (kick) 129 kg (self)
È ‘xtremely well-balanced
È Low engine noise
È Super smooth four speed constant mesh gears
È Front brakes: 2D0 mm Disc with Non asbestos type pad, Drum brakes are internal
expanding shoe type
È Rear brakes: Internal expanding shoe type drum brakes
È Multi-plate wet type clutch
Comfort

È 35w, multi-reflector type halogen bulb enhances night riding safety

È Good balance and low engine noise
È Comfortable seats good for both the family and the solo rider
È 6hicker tyre increases bike stability
È Driving is smooth in all gears
È 6elescopic hydraulic shock absorbers at front
È Swing arm hydraulic shock absorber at rear
È Relaxed posture,- cornering manners are excellent
Mileage and Economy

È Large fuel tank capacity of 13.6 lts saves frequent visits to the petrol pump
È Average user reported mileage varies from 55.2 kmpl in the city to 58.3kmpl on highways
- dealers claim 60-62 kmpl
È Current company policy provides six free services
È Side draft variable entura (Piston) carburetor provides reliable support


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È Advanced microprocessor ignition system (AMI) aids optimal combustion and saves fuel
È 18 inch alloy wheels have low maintenance being rust-free, and impact resistant

Hero Honda Glamour FI

Now is the time for you to drive in style the new Hero Honda Glamour FI in India. Any Hero
Honda Bike is a great product to covet and own. 6he Hero Honda Glamour price in India is
reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal
city commute. 6he Glamour Bike has a neat look along with a great rev-up and acceleration.
6ake a few minutes to read the new Hero Honda Glamour Review here!

6he Hero Honda Glamour FI 125 cc, built after the existing Glamour 125 cc, is a
technological trendsetter in two wheelers. 6his bike runs on unleaded petrol and introduces
the Programmed Fuel Injection technology and ‘lectronic Control Unit packed into the space
of a carburetor. 6hese groundbreaking technologies take mileage and rider control to a level
that can never be reached in bikes running on earlier technologies. Innovative safety features
made possible only by the PGMFI system accompany this 21st century motorbike. 6he 125
cc Glamour FI is available in two variants with a price difference of about Rs.D000 lying in
between.
Looks

È 6ubular double cradle type body frame

È New body colored grab rail and rear view mirrors
È 6rendy isor
È Large, masculine petrol tank with brilliant graphics and sculpted knee recesses
È Black colored ‘ngine with unique FI logo.
È Black alloy wheels
È Body colored rear grip
È Body colored louvers on visor
È Body colored rear view mirror
È Catchy design of smoke exhaust and guard
È Mind-blowing red and black visual contrasts
È oluptuous front fairing
È Dual-tone theme on the front mudguard and chain guard
È Well matched side and rear panels.


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Control

È 12D.8cc D-stroke single cylinder OHC

È Maximum power of 6. 2 kw (9 bhp) @ 000 rpm
È Maximum torque of 10.35 Nm @ D000 rpm
È ‘xcellent cold starting ability (no choke operation)
È No starting problems even after long storage periods
È Bank Angle Sensor, an industry first feature, which cuts off the fuel supply & ignition if
the bike tips over (falls)
È FI Malfunction Indicator Lamp which diagnoses any malfunction of sensors and indicates
the same to the rider
È Consistent engine performance at varying altitudes and ambience temperature
È ‘xcellent drivability owing to quick throttle response
È ‘xcellent Low ‘nd characteristics - minimum gear changing in city traffic
È ‘xtremely well-balanced
È Low engine noise
È Super smooth four speed constant mesh gears
È Front brakes: 2D0 mm Disc with Non asbestos type pad, Drum brakes are internal
expanding shoe type
È Rear brakes: Internal expanding shoe type drum brakes
È Multi-plate wet type clutch
Comfort

È No starting problems after long storage periods

È Bike can run at lower speeds on top gear without engine knocking
È Bank Angle Sensor cuts off the fuel supply & ignition if the bike tips over (falls)
È 35w, multi-reflector type halogen bulb enhances night riding safety
È Good balance and low engine noise
È Comfortable seats good for both the family and the solo rider
È 6hicker tyre increases bike stability
È Driving is smooth in all gears
È 6elescopic hydraulic shock absorbers at front
È Swing arm hydraulic shock absorber at rear
È Relaxed posture,- cornering manners are excellent
Mileage and Economy


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È Large fuel tank capacity of 13.6 lts saves frequent visits to the petrol pump
È LCD Fuel Gauge displays fuel level in the fuel tank which is easy to read
È Bank Angle Sensor cuts off the fuel supply & ignition if the bike tips over (falls)
È Intelligent computer controlled electronic fuel injection system which scans critical engine
operating conditions through sensors and provides input to the ‘lectronic Control Unit
(‘CU) to inject the accurate amount of fuel matching the requirement
È 6he sensors include - throttle position, engine operating temperature, intake air
temperature, manifold absolute air pressure and crank angle
È 6he R6MI takes input on distance traveled and fuel consumed from the speed sensor and
‘CU and displays the average mileage for the preceding 10 seconds
È ‘nables the rider to know the Real 6ime Mileage
È Provides an opportunity to adjust riding style to get the optimum mileage
È Consistent engine performance at varying altitudes and ambience temperature
È No carburetor - less maintenance
È Lowest ‘missions - will meet even the most stringent emission norms of the future
È 18 inch alloy wheels have low maintenance being rust-free, and impact resistant

Hero Honda Achiever

Now is the time for you to drive in style the new Hero Honda Achiever D.N.A in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Achiever price in
India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as
an ideal city commute. 6he Achiever Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda Achiever Review here!

6he Hero Honda Achiever has made a comeback in a new 200 avatar with definite
improvements over its 2006 model. 6he differences that strike on a first glance are the
cheerful graphics and black alloy wheels. However, there are further differences that make
this bike better than the 2006 model. Meant for the premium consumer sector, the Hero
Honda Achiever matches power and looks with price and performance. 6he Hero Honda
Achiever is a good looking and basic 150 cc bike.

Looks

È 6he tank, side panels, or the tailpiece has been picked up directly and looks as good as
Hero Honda Ambition
È Front fairing and the instrument cluster is different and distinct from Ambition


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È Well sculpted fuel tanks with cool knee indents
È A multi-reflector headlight with a halogen lamp and a position lamp
È Uniquely designed muffler with heat shield
È Dual tone painted chain case
È 5 spoke black colored cast wheel
È Attractive visor
È Chrome coated filler lead
È Single down tube
È Five exciting body colors
Control

È Can effortlessly achieve speed of 109 kmph

È Great acceleration, reaches 100kmph in just 1 .83 sec
È ‘quipped with 6uff-up puncture resistant tyre tube four-stroke engine constructed of
aluminum-alloy with an air-cooled, and twin-valve equipped motor of 1D9.1cc
displacement
È 13.D bhp at 8500 rpm power
È 6orque is 1.28 kgm @ 5000 rpm
È wheel and tyres are same at 2. 5 x 18 front and 3.oo x 18 rear
È electric and kick start
È 6he speed-odometer dial at left includes a trip meter,
È the right hand side dial includes the fuel gauge
È 6he gearbox is smooth, no false neutrals or gear hunting
È Five gears
Comfort

È 6aller handlebars provide more upright posture

È 6win rear sox and drums
È A multi-reflector headlight with a halogen lamp and a position lamp
È Conventional suspension set-up of telescopic shock absorbers at front
È Rectangular swing-arm adjustable hydraulic shock absorbers at the rear
È Front disk brake and cast wheels come as standard fitment
È ery low engine noise
Mileage and Economy


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È 6he Hero Honda Achiever delivers an impressive 51.3 kmpl in real city conditions and
55.3kmpl on the highway
È Wheel and tyres are same at 2. 5 x 18 front and 3.oo x 18 rear
È Fuel tank capacity is 12.5 litres
È Achiever has almost the best Low-‘nd-6orque in its category which enhances mileage and
helps to perform better at lower speeds in city conditions

Hero Honda CBZ Xtreme Kick Start

Now is the time for you to drive in style the new Hero Honda CBZ Xtreme Kick Start in
India. Any Hero Honda Bike is a great product to covet and own. 6he Hero Honda CBZ price
in India is reasonable and the Bike surely appeals to all youngsters as a personal choice and
as an ideal city commute. 6he CBZ Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda CBZ Review here!

6he Hero Honda CBZ Xtreme has little in common with its earlier version the Hero Honda
CBZ except a similar headlamp. With the Hero Honda CBZ Xtreme, Hero Honda has tried a
radical departure from its earlier 150 cc design themes. 6he success of this approach is
proven by the fact that since its launch in 2006, the Hero Honda CBZ Xtreme has been
selling almost 15, 000 to 20, 000 units per month, and crossed the 50, 000 mark within April
200 . 6his large, handsome, and good-looking bike has more to it than meets the eye.
Looks

È 6ubular diamond-frame type chassis with a single down tube and a box-section swing arm
È Matt-black powder-coated engine block
È Matt-black alloy wheels
È Black plastic lower side panels striped across by a shiny chrome sash
È Split hand grips for the pillion rider with a distinct look
È Additional 6eflon coat over visible silvery surfaces
È 6he side indicators that usually stick out in other bikes are integrated into the headlamp
housing
È A strip of clear glass above the headlamp conceals the parking lamp or pilot lamps
positioned above the headlight
È Body colored rear mirrors adds color to the handlebar area
È Classy, brushed-steel console finish


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È Rugged knee recesses built into the large, shapely fuel tank with Xtreme's logo
emblazoned across its sides
È Aircraft type fuel tank lid
È Deeply contoured seat
È Sculpted and sharp rear cowl
È Rear indicators integrated into rear L‘D headlamps
È Non-metallic bright colors
Control

È ‘xtremely compact body design meant for swift turn-in

È Awesome acceleration: 0 - 60 kmph in 5 seconds
È D-stroke air-cooled single cylinder engine, producing 1D.D bhp at 8500rpm
È Maximum torque12.8Nm at 6500rpm
È Fine tuned throttle responses with low engine noise
È ‘fficient kick start instantly powers up the engine
È Low engine noise makes it hard to detect a running engine
È Splendid stability and fabulous turning ability
È CBZ-X travels in a straight line and doesn't skid even at turns at 100kmph
È Forward leaning position enhances effortless braking
È Split rear grip, again a first-time feature in motorcycles in India
È Instrument cluster contains analogue gauges, including a speedometer, fuel gauge, and an
engine-rpm meter in addition to turn, neutral indicators, and a powerful high beam
Comfort

È Powerful high beam builds safety for the night rider

È 6he large speedometer, smaller tachometer, and fuel gauge can be read quickly and easily
È 6inted cowl improves aerodynamics and cuts the glare on the bike's instrumentation
È Relaxed and comfortable riding
È Upright posture doesn't strain wrists
È Generous knee recesses built into the fuel tank are friendly for tall riders
È Well placed footrests
È Forward leaning position enhances effortless braking
È Disc brake is highly efficient and gives instant response
È New brake pedal has a little toe guard for the big toe and a all-chrome tab to press on
È ‘xtremely good suspension built with the fast moving solo rider in mind
È High ground clearance allows riders to see forward over hatchbacks and sedan cars


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È Wide 100/90 low aspect ratio rear tyre for additional road grip and safety
È 6ail lamp cluster has a segmented stop-and-brake light section with turn indicators built
into a single unit
È Puncture resistant tuff up tube increase reliability of performance
È 6he CBZ Xtreme has the best gearbox in its class, smooth and free from problems
Mileage and Economy

È New model comes with a 3-year / D0,000 kms warranty

È CBZ-X gives 50kmpl in city roads 61kmpl on highways
È 6uff up tubes are economical vis-a-vis emergencies
È Black Alloy Wheels have low maintenance

Hero Honda CBZ Xtreme Self Start

Now is the time for you to drive in style the new Hero Honda CBZ Xtreme Self Start in India.
Any Hero Honda Bike is a great product to covet and own. 6he Hero Honda CBZ price in
India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as
an ideal city commute. 6he CBZ Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda CBZ Review here!

6he Hero Honda CBZ Xtreme has little in common with its earlier version the Hero Honda
CBZ except a similar headlamp. With the Hero Honda CBZ Xtreme, Hero Honda has tried a
radical departure from its earlier 150 cc design themes. 6he success of this approach is
proven by the fact that since its launch in 2006, the Hero Honda CBZ Xtreme has been
selling almost 15, 000 to 20, 000 units per month, and crossed the 50, 000 mark within April
200 . 6his large, handsome, and good-looking bike has more to it than meets the eye.

Looks

È 6ubular diamond-frame type chassis with a single down tube and a box-section swing arm
È Matt-black powder-coated engine block
È Matt-black alloy wheels
È Black plastic lower side panels striped across by a shiny chrome sash
È Split hand grips for the pillion rider gives a different look
È Additional 6eflon coat over visible silvery surfaces
È 6he side indicators that usually stick out in other bikes are integrated into the headlamp
housing


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È A strip of clear glass above the headlamp conceals the parking lamp or pilot lamps
positioned above the headlight
È Body colored rear mirrors adds color to the handlebar area
È Classy, brushed-steel console finish
È Rugged knee recesses built into the large, shapely fuel tank with Xtreme's logo
emblazoned across its sides
È Aircraft type fuel tank lid
È Deeply contoured seat
È Sculpted and sharp rear cowl
È Rear indicators integrated into rear L‘D headlamps
È Non-metallic bright colors
Control

È ‘xtremely compact body design meant for swift turn-in

È Awesome acceleration: 0 - 60 kmph in 5 seconds
È D-stroke air-cooled single cylinder engine, producing 1D.D bhp at 8500rpm
È Maximum torque12.8Nm at 6500rpm
È Fine tuned throttle responses with low engine noise
È ‘fficient self start instantly powers up the engine
È Low engine noise makes it hard to detect a running engine
È Splendid stability and fabulous turning ability
È CBZ-X travels in a straight line and doesn't skid even at turns at 100kmph
È Forward leaning position enhances effortless braking
È Split rear grip, again a first-time feature in motorcycles in India
È Instrument cluster contains analogue gauges, including a speedometer, fuel gauge, and an
engine-rpm meter in addition to turn, neutral indicators, and a powerful high beam
Comfort

È Powerful high beam builds safety for the night rider

È 6he large speedometer, smaller tachometer, and fuel gauge can be read quickly and easily
È 6inted cowl improves aerodynamics and cuts the glare on the bike's instrumentation
È Relaxed and comfortable riding
È Upright posture doesn't strain wrists
È Generous knee recesses built into the fuel tank are friendly for tall riders
È Well placed footrests
È Forward leaning position enhances effortless braking


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È Disc brake is highly efficient and gives instant response
È New brake pedal has a little toe guard for the big toe and a all-chrome tab to press on
È ‘xtremely good suspension built with the fast moving solo rider in mind
È High ground clearance allows riders to see forward over hatchbacks and sedan cars
È Wide 100/90 low aspect ratio rear tyre for additional road grip and safety
È 6ail lamp cluster has a segmented stop-and-brake light section with turn indicators built
into a single unit
È Puncture resistant tuff up tube increase reliability of performance
È 6he CBZ Xtreme has the best gearbox in its class, smooth and free from problems
Mileage and Economy

È New model comes with a 3-year / D0,000 kms warranty

È CBZ-X gives 50kmpl in city roads 61kmpl on highways
È 6uff up tubes are economical vis-a-vis emergencies
È Black Alloy Wheels have low maintenance

Hero Honda Hunk Kick Start

Now is the time for you to drive in style the new Hero Honda Hunk Kick Start in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Hunk price in India is
reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal
city commute. 6he Hunk Bike has a neat look along with a great rev-up and acceleration.
6ake a few minutes to read the new Hero Honda Hunk Review here!

6he new the 150cc Hero Honda Hunk is here! It's very manly and definitely a powerful and
commanding bike. It's got great looks and fairing along with styling. It's big and awesome to
look at, and it's a tad bit shorter and sporty that makes it look unique and possessed. It
competes for attention with the CBZ. With stunning colours, it looks really cool, but lacks
digital instrumentation. Go for it - it's a sure head turner!

Looks

È Large Muscular fuel tank and Aerodynamic 6ank Shroud

È 6rapezoidal Multi reflector Head light
È Stylish, Clear lens Multi reflector Indicators
È Large, inclined Muffler


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È Dual coloured Aircraft type fuel tank cap
È 5 Spoke black alloy wheels
È Raised Rear fender
È Chrome finished 3 D " HUNK" ‘mblem
È Contemporary new Fuel cock
È Classic, 3 pod console with chrome ringed large speedometer
È 5 ‘xciting body colours
È 2 new colours - Panther Black and Fighter Blue
È Contoured Saddle with Pillion seat hump
È Aluminium Handle Bar holder cover
However, the Hunk does not feature

È Digital instrumentation, L‘D tail lamps,

È Rear discs
È Split rear grabs
È Body coloured mirrors and full fairing
Control

È 150cc ‘ngine, which delivers amazing top power of 1D.2 BHP @ 8500 RPM and a torque
of 12.80 N-m @ even at a low RPM of 6500
È 0-60 Km ph in 5 seconds flat
È Advanced 6umble Flow Induction" (A6FI) 6echnology
È Advanced Microprocessor Ignition System -"AMI" with Multi Mapping Digital CDI along
with "Carburettor controlled ariable Ignition" for better, throttle, acceleration, and
immediate response
È Unique "Anti-Kick back" device 2D0 mm front Disc Brakes as standard.
È 5speed (1-down D-up pattern) gearbox.
È kick start and self start option

Comfort

È New 5 step adjustable "Gas Reservoir Suspension" - "GRS" for comfortable ride even on
the toughest of roads
È Puncture resistant Rear 6uff -up 6ube.
È 1325 MM long wheel base for enhanced stability.
È Wide 100 / 90 low aspect ratio Rear tyre.


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È 2D0 mm front Disc Brakes as standard.
È Self Start option.
È Better that CBZ ‘xtreme and Pulsar
È Latest 10W30 SJ Grade, JASO MA Grade ‘ngine oil which allows oil change at intervals
of 6000 kms.
È Reduced maintenance cost, excellent ability to start immediately in cold weather.

Hero Honda Hunk Self Start

Now is the time for you to drive in style the new Hero Honda Hunk Self Start in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Hunk price in India is
reasonable and the Bike surely appeals to all youngsters as a personal choice and as an ideal
city commute. 6he Hunk Bike has a neat look along with a great rev-up and acceleration.
6ake a few minutes to read the new Hero Honda Hunk Review here!

6he new the 150cc Hero Honda Hunk is here! It's very manly and definitely a powerful and
commanding bike. It's got great looks and fairing along with styling. It's big and awesome to
look at, and it's a tad bit shorter and sporty that makes it look unique and possessed. It
competes for attention with the CBZ. With stunning colours, it looks really cool, but lacks
digital instrumentation. Go for it - it's a sure head turner!

Looks

È Large Muscular fuel tank and Aerodynamic 6ank Shroud

È 6rapezoidal Multi reflector Head light
È Stylish, Clear lens Multi reflector Indicators
È Large, inclined Muffler
È Dual coloured Aircraft type fuel tank cap
È 5 Spoke black alloy wheels
È Raised Rear fender
È Chrome finished 3 D " HUNK" ‘mblem
È Contemporary new Fuel cock
È Classic, 3 pod console with chrome ringed large speedometer
È 5 ‘xciting body colours
È 2 new colours - Panther Black and Fighter Blue
È Contoured Saddle with Pillion seat hump
È Aluminium Handle Bar holder cover


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However, the Hunk does not feature

È Digital instrumentation, L‘D tail lamps,

È Rear discs
È Split rear grabs
È Body coloured mirrors and full fairing

Control

È 150cc ‘ngine, which delivers amazing top power of 1D.2 BHP @ 8500 RPM and a torque
of 12.80 N-m @ even at a low RPM of 6500
È 0-60 Km ph in 5 seconds flat
È Advanced 6umble Flow Induction" (A6FI) 6echnology
È Advanced Microprocessor Ignition System -"AMI" with Multi Mapping Digital CDI along
with "Carburettor controlled ariable Ignition" for better, throttle, acceleration, and
immediate response
È Unique "Anti-Kick back" device 2D0 mm front Disc Brakes as standard.
È 5speed (1-down D-up pattern) gearbox.
È kick start and self start option
Comfort

È New 5 step adjustable "Gas Reservoir Suspension" - "GRS" for comfortable ride even on
the toughest of roads
È Puncture resistant Rear 6uff -up 6ube.
È 1325 MM long wheel base for enhanced stability.
È Wide 100 / 90 low aspect ratio Rear tyre.
È 2D0 mm front Disc Brakes as standard.
È Self Start option.
È Better that CBZ ‘xtreme and Pulsar
È Latest 10W30 SJ Grade, JASO MA Grade ‘ngine oil which allows oil change at intervals
of 6000 kms.
È Reduced maintenance cost, excellent ability to start immediately in cold weather.

Hero Honda Karizma


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Now is the time for you to drive in style the new Hero Honda Karizma D.N.A in India. Any
Hero Honda Bike is a great product to covet and own. 6he Hero Honda Karizma price in
India is reasonable and the Bike surely appeals to all youngsters as a personal choice and as
an ideal city commute. 6he Karizma Bike has a neat look along with a great rev-up and
acceleration. 6ake a few minutes to read the new Hero Honda Karizma Review here!

6he Hero Honda Karizma may be the most modern bikes presently on Indian roads today.
Until you have really seen it with your own eyes you don't know what it means to see a
zKarizma. 6he extremely streamlined angles and body frame, the stunning colors, the
powerful 225 cc engine, the magnesium alloy wheels, and Hero Honda reliability makes the
Karizma a bike to covet.
Looks

È Diamond shaped tubular chassis

È 18 inch black magnesium alloy wheels front and rear
È Chrome Plating and Gold Colored pipes for the black Powder Coated ‘xhaust
È 6rapezoidal Headlamp
È Knee recesses on the sleek 15 lit tank enhances looks
È amazing front panels
È crystal clear headlamp
È black powder coated exhaust pipe
È three pod instrument cluster with a digital fuel indicator
Control

È Users reach speed of 120-130 kmph easily

È 6ransmission system is sport bike like shift pattern - 1 Down, D Up
È Partly digital console
È Ignition : Digital - CDI (AMI-Advanced Microprocessor Ignition System)
È ‘lectric start
È Powerful throttle
È Stupendous braking
È 1 bhp at 000 rpm
Comfort

È 6he suspension has been so set as to provide minimal backaches


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È Ride for the pillion is equally comfortable as the rear suspension is generally set perfectly
for the average Indian pillion
È Front disc and rear drum brakes perform without the least glitch or complaint
È High quality front and rear suspension gives an extremely comfortable riding experience
È 135 mm wheelbase adds stability
È Superlative riding experience
È ‘xcellent cornering manners
Mileage and Economy

È Average mileage is about D0 kmpl in city conditions

È C carburetor with a variable ignition system that alters timing based on engine power and
throttle position
È Sleek looking tank holds 15 liters of petrol

Product Range and New Models: 6he Company's product range includes "Splendor+" which
is the largest selling motorcycle brand in the world with over 10 lacs vehicles sold in 2008-09.
A cumulative over D0 million customers are the real foundation of the company's strength. 6he
total shall soon cross the million mark. Its volumes have been growing at a strong pace of
D0% p.a. over the last five years. 6he Company launched a new 100 cc model "Passion pro" in
June 2008. 6he motorcycle is focused on style and contemporary design, compared to the
Company's earlier motorcycles that were focused on utility and/or style. "Passion pro" has
received an excellent response from the market and has established itself well, with sales
reaching a level of 29000 units in august 2008, within just three months of its launch.

PRICING

Pricing is a important component of marketing mix of the firm. Determining the prices of
different products of a firm is very difficult task of the marketing manager. Price denotes
money value of a product. If represent the amount of money for which a product can be
exchange. In other words, prices represents the money which the buyer pays to the seller for a
product price represent the exchange value of goods and services in terms of money. Price is
all around. Price factor has very well been touched by the manufacturers. 6he pricing strategy
of the company is very set. they price their product according to the cost of production and
also by keeping an eye on the price of the competitors of that segment and demand of the
product in the market. A pricing strategy that ensured an average manufacturer margin that
game dealer an adequate return and created a reputation with consumers like ³a company


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selling a good quality product at a reasonable price. Industry focus them selves the low cost
producer with good quality and aimed to maintain the price advantage in every market of two
wheelers. Hero Honda group ensures an easily affordable pricing through excellent
transportation to common man. I fixes customer centric pricing that provide customer total
satisfaction. Hero Honda¶s pricing objectives are: List price, Discount , Financing schemes,
Credit terms , Maximize profits Hero Honda group ensures an easily affordable pricing
through excellent transportation to common man. It fixes customer centric pricing that
provides the customer with total satisfaction.

DISTRIBUTION

H‘RO HONDA HAS direct contact with the dealers. 6here are no middlemen involved. 6he
dealers directly sell to the customers. 6he channel is of 1st level which has only the dealers as
the link between the customers and the company.

Distri ution Channel

Manufacturer

Dealer

Sub-dealer Customer

How Promptly 6he Work Done? 6he dealers keep in contact with the manufacturer or the
head office or the regional office. As the order fax reach the manufacturer, as in Delhi it takes
only one-nights time of transit from the manufacturer to the dealer. 6he dealers in far off
places like in Assam, South India and others, it takes a maximum of days to reach the
placed order due to the transit. Basically, the delay of delivery of the order is basically due to
the transit time. 6he transit time in near places is not more than one night. How 6he 6ransit
Done? 6he manufacturer's have their own transportation facilities. 6he manufacturers have
trucks which can load 18-25 units of bikes at a time, individually. When the units are
dispatched from the factory, or manufacturing it, it is in its standard form and accessories like
seat cover, handle cover, back-looking glass and others are not part of the standard unit of the
two wheeler of Hero Honda. 6he transportation trucks straightway reach the warehouses of
the dealers. In case the warehouse of the dealer is not there then the trucks straight away
come to the dealers showroom where they usually have some place for storing the stock as in
the case of Daryaganj dealer. 6he Daryaganj dealer¶s stock is stored in the place


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Just behind the show room. For this particular dealer the transportation cost to bring the units
from the warehouse to the showroom is saved and thus the distribution cost is saved. But
there are dealers like in Green Park, this dealer does not have their ware house nearby to the
showroom which means that this dealer has to keep their own transportation system to bring
the units from the warehouse to the showroom which is not cost effective. 6he sub-dealers
usually hire the trucks to get the units delivered to their outlets. Sometimes the dealer¶s truck
is used by the sub-dealers to carry the units to their outlets on goof faith. If the sub-dealer is
the part of the same dealer then the transportation charge are less and if they hire it then the
cost is high for the sub-dealers. What Does Customer Want? 6he customers of Hero Honda,
according to the Asst. Manager (Sales) are very particular about the colors that Hero Honda
offers in its wide variety of scooters. He said that the customers are very much aware of their
purchase. Gone are the days when the sales people could influence the buyer to buy a
particular product. Almost 90-93% of the customer, whoever comes to the showroom.
Usually comes after he/she had made a decision. So, the work of the sales person is less. 6he
rest -10% have some doubts with regard to the purchase of Hero Honda. It is here, where the
sales persons have to do some work in convincing the customers about the scooter. 6he sales
person in this regard convey the customers about the mileage, strokes and also the parameters
that the customers enquire. When Do 6hey Sell More? Hero Honda scooters peak season
selling state from the month of April, just after the budget and after the month of November
the sells become slack. 6his is mainly due to the people think that the budget can reduce the
prices and moreover the budget usually brings in a difference at Rs. 1000 - 1500. 6his is an
important factor for increasing in sells. Usually in the month of November the manufacturer
comes with re-modeling and also new launches. People wait till the month of April to see
whether the prices are slashed or not. How Is 6he Price Determined According 6o 6he
Change? Manufacturer, on the basis of the cost of production determines the price and the
factors like tax and others. Usually the sales tax on the two wheelers is 8% but in Hero Honda
it D%. 6his is because Delhi Government has found out that the pollution from Hero Honda is
very less due to the catalytic converter which every model of Hero Honda have. 6he
government has identified that by using the catalytic converter Hero Honda is helping the
environment which is a social cause. Hero Honda Bikes not only have market in India, but
also in abroad. 6o maintain the differences in market of the different companies it takes the
help of the local manufacturers or the dealers outside for the distribution of their scooters
smoothly. How's 6he Relationship Between 6he Manufacturer And Dealers? Improvement of
sells is the first and foremost concern of the trading people. He said that they are given the
dealership to sell the products of Hero Honda and the relationship is better when the sells are


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more. On an average, sells around 5 to 6 scooters per day. 6he company representatives
keeps in contact with the dealers over telephone and keeps an pressuring the sales managers
of the dealers to improve the sells. 6he Dealer have 2 sales staff in the showroom and more
sales staff who moves around their sells territory on the call of the customers. 6he
representatives of the company visit the dealers weekly or fortnightly. As per Mr. Ayub, the
representatives of the company keeps on pressuring the dealers to increase the sales as in the
case of the aforesaid dealer. ‘arlier they use to sell around 5-6 scooters a day and now they
are asked to sell around 8-10 scooters on an average per day. 6he company keeps a very good
relationship with the dealers. As the launch of the new models the company calls on all the
dealers for meeting. In these meetings the company executives discusses the strategies that
the company will follow during the forthcoming months. 6he company accordingly asks the
dealers to change their strategies. 6hings like the target of sales sells for the forthcoming
year, what should be the attitude towards the market, the company's forecast and many such
issues are discussed in these meetings. 6he company also meets with the dealers during the
time of new launch. Here the company invites the dealers and also the sub dealers to train
them about the new product that is going to be launched. 6he company gives the dealers and
sub dealers mechanics a training of around 15 to 20days. 6he most important fact about the
dealers of Hero Honda is that they organize training programmes for the local mechanics who
doesn't have any affiliation from any brand two-wheelers. 6hese mechanics who are running
their business in very small scale are invited to the training camps of the dealers at the launch
of new models. 6he dealers improve the relationship at personal level with these local garage
by giving them gifts. Sales forecast So depending on the market demand, the dealers place
the order. 6he dealers make a sales forecast taking into consideration the market demands the
past years sales in the same month, and also whether the present season is a peak slack
season. Once, the sales forecast is made, then the dealers place the orders depending on the
forecast.

ADVERTISEMENT

Advertisement, local events sponsorship and promotions and inviting a prominent personality
for the inaugural or first like delivery function would contribute effectively in generating a
wider local interest and attention. Hero Honda¶s latest DKD commercial its two brand
starring its Ambassador and India¶s heart throbs, Hritik Roshan and priyanka chopra, truly
reflects the multi fact roles that today¶s new generation plays. 6he commercial reflecting the
charisma and vibrancy of these two stars, takes Desh Ki Dhadkan to dazzling new heights. It
is young, colorful and vibrant and represent the icons of contemporary times. And it will go a


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long way in strengthening the leadership status of the product by the mile. 6he new
commercial is powerful film repeat with an impressive storyline. 6he effort to pack the story,
drama and impact in just 60 seconds was phenomenal challenge itself. 6he idea was born
itself. 6he idea was born out of the very essence of ³Hero and Stars´. Keeping in mind would
cause on the drama and impact it would cause on the audience. It is a commercial packed
with action where today¶s heart throbs, Hritik roshan and Priyanka Chopra, are seen tackling
new roles. 6he story being in a field adjoining a hill with Hritik and priyanka on Hero Honda
bikes and Pleasure respectively. Both Sameer and Aditya win lifetime opportunity act with
Hritik and Priyanka, the two star heartthrobs of millions in India and all four will be seen in
action in the new commercial DKD. 6hese are some of the Slogan for every product (Bike)
and these are following:CD-100 : Fill it, shut it, Forget it.

Celebrity ‘ndorsement: Hero Honda has roped in film actor Hrithik Roshan, Priyanka
chopra, Mohammed Kaif, Harbhajan Singh, Zaheer Khan, Yuvraj Singh and irender
Sehwag as its brand ambassadors. Announcing the formation of the Hero Honda `6eam
Ambition', Mr. Pawan Munjal, said, "Indian Cricket and Hero Honda have both made the
nation proud and helped the world recognize India's potential. 6he `6eam Ambition' has
many similarities in personality with Hero Honda, such as `splendor of performance',
`passion to excel' and `ambition to win". In their role as brand ambassadors, the `6eam
Ambition' would soon star in Hero Honda's new commercials. As part of the association,
Hero Honda will also find prominence on the bats to be used by Yuvraj Singh and Zaheer
Khan in the forthcoming cricket events.

Sourav Ganguly, who has been associated with Hero Honda since 2000, said, "6hrough 6eam
Ambition, we are looking forward to communicate more directly with over 6 million Hero
Honda customers in India and the millions more added every year." Says Mr. Anil Dua,
Senior ice-President, Marketing and Sales, Hero Honda, "Hero Honda has been promoting
cricket for over a decade now. Starting with the memorable Hero Cup in 1993, we have
adequately benefited through the promotion of this national fervor. Cricket is one sport which
binds our entire nation and is, perhaps, the largest platform in the world, enabling companies
to communicate with millions of consumers in the shortest possible time." 6he `6eam
Ambition' would also provide coaching and guidance to the budding talent in the country and
support cricket projects undertaken by Hero Honda in India and abroad, a company release
said. Hero Honda will keep up its promotional activities with emphasis on cricket and
entertainment. 6he company claims that its Desh Ki Dhadkan campaign featuring brand
ambassadors priyanka chopra and Hrithik Roshan has received a very good response and


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helped build the company's image. Last year, the company spent around Rs 90 crore on
advertising and marketing.

SALES PROMOTION

A fundamental concern of any customer during the purchase Of a double product is the
quality and provision of efficient service. After all queries on product quality, performance,
features and benefits have been satisfied, the customer invariably focuses on the service
factor for the product as the end objectives is to ensure trouble free operation. In this respect
servicing acquires paramount importance and Hero Honda¶s focus and emphasis on these key
result area have been instrumental in establishing its superiority and technological edge in the
market. 6he host of training programmes and relationship enchantment activity additionally
backs the spates of servicing camp, organized throughout the country. 6he active support of
servicing and co-operation rendered by the dealer in the form of logistics and infrastructure
further aid in making such programmes highly collecting information meaningful and
valuable. 6hey are doing free check up camps reinforce customer trust. Service advisor¶s
from a customer about his satisfaction level after the servicing of their bike. For the
promotion of products the Hero Honda dealer rally. Hero Honda is organizing so many
events in sports, cultural programmes, film -festivals etc for the promotion of the product eg.
Hero Honda NKP salue Challenger Cricket Cup brings new talent to the force, MAL6A
Junior 6ennis 6ournament, Hero Honda social¶s Commitment rehabilitating children affected
by violence, operational, Relief, donation for drought relief, Rota 6rade Mela 200 , Road
Show, 6raining programmers to enhance quality of service, free back up camps reinforce
customer¶s trust, ride safe programmes held for Delhi 6raffic Police, Mobile Revolution in
servicing etc. 6he powerful benefits of test rides, special promotions and communication
drives to draw in the initial customers, preparation of Accurate customer information forms to
create a customers database, offer of finance facility and active steps to impart specific
transiting at the dealer¶s sales and services levels would be essential steps to achieving the
brand and the company objectives. Mr. Uppal also touched upon the servicing policy for
passion and cautioned the invitees to remain alert for substitution in Hero Honda brands
among its customers. 6he sales increase would have do be targeted from new customers and
not its existing ones. 6he key attitude that would constantly contribute towards sales would
be total and passionate commitment.


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PUBLICITY

For the purpose of publicity Hero Honda is always organizing different events, etc. and they
are always inviting celebrities from film, sports, media, politics, etc. 6here are some of event
and parties are as follows: 6he Hero Honda stardust millennium Honours and BFJA awards
for Bengali films. In a gesture that honors and salutes some of the finest talent in south Indian
Cinema. Hero Honda also security sponsored the 20th Cinema ‘xpress Awards. 6he
sponsorship of the women¶s World Cup in 199 came next, then the ICC Cricket World Cup
200D. Hero Honda, the largest two wheeler leader in Indian sponsored the 21st Cinema
express Awards. Marketing Convention 2006. 6hey are priyanka Chopra, Miss World, Lara
Dutta Miss Universe, Diya Mirza Miss Asia Pacific, Sourav Ganguly Indian Cricket Captain,
Daler Mehndi, Mr. Harsha Bhogle the famous cricket commentator etc. Dandiya programme
at Kota and Banswara. In this Ms Sunita Rao, the popular singer entertains at the festivals at
the Dandiya Programme. 6hrill and the excitement at the Hero Honda Master Golf
tournament. In this tournament Kapil Dev, virendra sehwag, Pronoy Roy, Milkha Singh and
so many celebrities were present. Galaxy of stars add to the glitter Surat rang 2008. Pinaz
Masani, the famous gazhal singer, Kavita Krishnamurthy the famous play back Singer,
Shibani Kashyap the pop singer are the main highlight of this programme.

Hero Honda sponsor¶s 26th Cinema ‘xpress Awards and the main celebrities of this
programme are evergreen Hero Devanand, Film Makers Hero Honda sponsor Army ordnance
Corp Motor Cycle ‘xpedition. Joy of buying At Hero Honda, we believe in providing the
best of service, as reflected in our corporate µWe Care¶ philosophy. An extension of this is the
passport programme, popularly known as µsuhana safar¶. 6his unique programme aims to
build long-term relationship with customers.

6he Passport Programme membership benefits customers in a number of ways:-

Ƈ For new customers, a change to win a Hero Honda Splendor or Rs.50,000 in cash; and a
one ±year accident incident insurance cover worth Rs. 1 lakh

Ƈ Special rewards and discount on accumulation points


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Ƈ Invites to exclusive local events

Ƈ Attractive discount on spare parts

Ƈ And much more to come

R‘IING UP 6O ‘N6IC‘ BUY‘RS With manufacturer offering attractive finance

schemes, now is a good time to buy, says Dr. Pritam Singh. 6WO- WH‘‘L‘R sales have
been increasing thanks to the continue thanks to the continuing upward swing in motorcycle
sales. 6o make sure that this happiness continues and that they grab the largest share of the
pie, manufacturer have been offering the customers finance schemes. Hop across to the Hero
Honda dealership. 6he industry leader is offering finance option from ICICI, Centurion Bank
and 6ata Finance All normally offer a 9.9-percent rate of interest on two-wheeler finance,
though there are other schemes too. Keeping in mind the ongoing festive season, Hero Honda
is offering a Special 8.D-pecent rates of interest on two-wheeler finance Another schemes is
the low ‘MI schemes where one has to pay just every month(for D8 month). But Hero
Honda offers this for on 65- 0 percent of the total amount against the usual 90-percent. Bajaj
has tie-up with Centurion Bank, apart from its own two-wheeler finance. 6he prevailing rates
are 11.9 percent against a finance of 8590 percent of the total value. Kinetic also has its own
finance arm besides its dealer its dealers can get your vehicle financed through 6ata Finance.
6he rates are 9.9 percent but there are many varying rates of interest available. 6here is a
heavily advertised schemes of 2.99 percent rate available on a limited period. 6S offers the
same 9.9 percent rate of interest. yamaha has a tie-up with the Association apart from the
other option. Finance is easily available for up to 85-90 percent of the total value and the
rates are 9.9 percent. 6he interest rates vary according to the period of loan and the amount.

BUSINESS GROWTH

Hero Honda Motors Limited is a Star which has high market share and a high growth rate.
6hey developed fuel efficient motorcycles at a time when everyone was producing 2-stroke
motorcycles. 6his made them gain market share at a rapid pace and helped them to become
the market leaders in the motorcycle segment. Having set its focus on customer satisfaction,
the company is determined to provide products and services that meet the quality,
performance and price aspirations of their customers. HHML wants to provide its customers
with value for their money. Hero Honda's motorcycles account for over 60% of the entire
motorcycles market. 6he various brands of Hero Honda are Splendor, CBZ, Passion,
karizma, and Acheiver. Splendor enjoys nearly 30% of the total motorcycles market.


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CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones
developed at the grassroots. 6he Company believes it has managed to bring an economically
and socially backward region in Dharuhera, Haryana, into the national economic mainstream

6he Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. 6his includes:

J An Integrated Rural Development Centre has been set up on D0 acres of land along
the Delhi-Jaipur Highway. 6he Centre-complete with wide approach roads, clean
water, and education facilities for both adults and children-now nurtures a vibrant,
educated and healthy community. Installation of deep bore hand pumps to provide
clean drinking water.
J Constructing metalled roads and connecting these villages to the National Highway
(NH -8).
J Renovating primary school buildings and providing hygienic water and toilet
facilities.
J ‘nsuring a proper drainage system at each of these villages to prevent water-logging.

Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas

plants.

6he Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students
from nearby areas. It has now grown into a modern Senior Secondary, CBS‘ affiliated co-
educational school with over 1200 students and 61 teachers. 6he school has a spacious
playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room,
a well-stocked library and a computer centre.

Raman Munjal Memorial Hospital


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Multi-specialty hospital equipped with the latest diagnostic and surgical technology.
6he Raman Munjal Memorial Hospital provides healthcare to the rural population in and
around Dharuhera, and also caters to accident and trauma victims driving along the Delhi-
Jaipur highway

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a ocational
6raining Centre. So far 26 batches comprising of nearly 625 women have been trained in
tailoring, embroidery and knitting. 6he Company has helped women trained at this centre to
set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of
the women are now self-employed.

Adult Literacy Mission

6his Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali. 6he project started with a modest enrolment of 36 adults.
Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults
by getting village heads and other prominent villagers to motivate illiterate adults.

Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by
the Foundation by providing financial help and other support to the families.

Rural Health Care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health
care services to the local community. Free health care and medical camps are now a regular
feature in the Hero Group's community outreach program.

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, 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 takes a stand as a socially responsible enterprise


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respectful of its environment and respectful of the important issues.
Hero Honda has been strongly committed not only to environmental conservation
programmes but also expresses the increasingly inseparable balance between the economic
concerns and the environmental and social issues faced by a business. A business 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 from our Worthy Chairman Mr.Brijmohan Lall Munjal.

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our environmental

performance on a continual basis, as an intrinsic element of our corporate philosophy.

6o achieve this we commit ourselves to:

J Integrate environmental attributes and cleaner production in all our business processes
and practices with specific consideration to substitution of hazardous chemicals,
where viable and strengthen the greening of supply chain.
J Continue product innovations to improve environmental compatibility.
J Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
J Institutionalise resource conservation, in particular, in the areas of oil, water,
electrical energy, paints and chemicals.

‘nhance environmental awareness of our employees and dealers / vendors, while promoting
their involvement in ensuring sound environmental management.

Quality Policy

‘xcellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in our
products and services which will meet and exceed customer's growing aspirations through:

J Innovation in products, processes and services.


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J Continuous improvement in our total quality management systems.
J 6eamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who may
be affected by its operations. We believe that the safe work practices lead to better business
performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

J Integrating safety and health matters in all our activities.

J ‘nsuring compliance with all applicable legislative requirements.
J ‘mpowering employees to ensure safety in their respective work places.
J Promoting safety and health awareness amongst employees, suppliers and contractors.

Continuous improvements in safety performance through precautions besides participation

and training of employees.

The Market Leader

6oday Hero Honda has managed to achieve indigenization of over 95 percent, a Honda
record worldwide. Hero Honda is at present the largest-selling Indian motorcycle and the
most fuel-efficient in its category - the outcome of Hero Group's foresight and another classic
example of how the Group strives to provide the customer with excellence and satisfaction.

Hero Honda became the first company in the country to introduce four-stroke motorcycles
and set the standards for fuel efficiency, pollution control and quality. It has an excellent
distribution and service network spread throughout the country. Hero Honda is the market
leader in motorcycles, with sales of over 2 million motorcycles and a strong market share of
D8% during 2003-0D.


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‘xcellent marketing, finance and loan services, an efficient dealer network, tactical
promotion comprising of fuel conservation campaigns, mobile workshops, safety driving
courses and others, all placed Hero Honda in a league distinct from the conventional. 6he
Company focuses on providing "alue for Money" through its pricing strategies and after

sales services.

SWOT ANALYSIS

Strengths:

‡ 6echnological support from Honda Motors, Japan. 6he company has a deeply penetrated
dealer network. 6he company provides good after sales service through its well established
dealer network.

‡6he company enjoys a huge market share and well established brands like Splendor+,
Passion+, CBZ-xtreme etc.

Weaknesses:

‡ Hero Honda depends on Honda for new products and this is a big weakness.

‡6he company doesn't have a product catering to Rs. 25,000 - Rs. 35,000 segment, and the
company might suffer on account of this as the imported motorcycles and foreign players'
motorcycles are expected to cater to this particular segment of the market. 6his can result in
fall in the market share of the company.

‡6he company imports about 31% of its spare requirements. 6his makes the company
vulnerable to the import policies of the government. It also exposes them to the exchange rate
risk.

Opportunities:

‡ 6he motorcycle segment is growing at the rate of 33%, which provides a great opportunity
for the company to cash on.

‡ Also it is experiencing a shift in the customer preference for Dstroke mobikes (automatic
scooters). 6his again provides an

Threats:


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‡ 6he technical collaboration with Honda is valid only for a period and this is a serious threat
as they have been dependant on Honda for technology. Also Honda has set up its 100%
subsidiary in India which has start producing motorcycles from 2008. 6his has further
increased the competition.

‡ 6he company has plans to foray into the scooter segment, which can also be a major threat
for the future prospects of the company. 6he reason being that the consumers are shifting
from scooters to motorcycles and at this hour moving from motorcycles to scooters doesn't
sound logical.

Hero Honda in the Rural Market.

In the rural market, consumers prefer motorcycles for their sturdiness and ability to sustain
bad road conditions. 6he stricter environment norms such as the euro emission norms are
forcing companies to install catalytic converters in the existing vehicles or go in for four-
stroke engines to reduce pollution. 6his has added up to the costs of scooters while most
motorcycles are in tandem with these new norms. 6he success of the motorcycle is more of a
rural phenomenon. According to analysts, the entire age profile of the consumer has
undergone a change and the buyers / target consumers are now younger. ``So, in effect, the
entire demographics now are in favour of the motorcycle segment. It is not unusual that a
large chunk of motorcycle sales are from the rural areas. Hero Honda, derives 60 per cent of
its sales from the rural segment.´

In order to promote its brand in the rural market, Hero Honda has recently launched a
marketing initiative in towns with a population of less than 50,000 in Uttar Pradesh. 6he
initiative would involve a mobile showroom and workshop, through which people will be
able to gather knowledge about the vehicles and also buy them. 6he concentration will be
mainly on promoting the company's two major brands: Splendor and Joy. With these
initiatives, Hero Honda is targeting sales of 1.3 million two-wheelers this fiscal. 6he festival
season has also showed an improvement in sales for Hero Honda despite the current
downtrend. A factor driving sales could be the company's offering of a two-year warranty
(for which it claims to spend approximately Rs 10-15 crore annually) and its hugely
successful consumer loyalty programme.
Hero Honda, makes practically nothing at its plant. 6he only operation done at its Dharuhera
works other than the assembly of motorcycles is engine assembly.
Hero Honda has an enormous advantage as in it has a product for each of the market segments. 6he


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CD 100 is the basic no-frills model with fuel efficiency and reliability as USP; the CD 100 SS is the
upgraded durable model positioned in the rural market; Sleek the glamorous bike for the urban youth
and the Splendor is the premium product with better features and targeted at the urban market.
Analysts believe that the biggest advantage Hero Honda enjoys is its brand image as a fuel-
efficient bike. 6he company expects to leverage on the strong brand image when its earliest
customers start looking for replacements. A recent research report says that on the back of
large volumes, Hero Honda has developed strong vendors like Munjal Showa, Hi-6ech
Gears, International Instruments and others from whom it sources more than 80 per cent of its
components. 6his has also helped the company to lower its import content.
Hero Honda, makes practically nothing at its plant. 6he only operation done at its Dharuhera
works other than the assembly of motorcycles is engine assembly.

Rural marketing - challenges and opportunities

6he Indian rural market with its vast size and demand base offers great opportunities to
marketers. 6wo-thirds of countries consumers live in rural areas and almost half of the
national income is generated here. It is only natural that rural markets form an important part
of the total market of India. Our nation is classified in around D50 districts, and
approximately 630000 villages which can be sorted in different parameters such as levels,
accessibility, income levels, penetration, distances from nearest towns, etc.

6he success of a brand in the Indian rural market is as unpredictable as rain. It has always
been difficult to gauge the rural market. Many brands, which should have been successful,
have failed miserably. More often than not, people attribute rural market success to luck.
6herefore, marketers need to understand the social dynamics and attitude variations within
each village though nationally it follows a consistent pattern.
While the rural market certainly offers a big attraction to marketers, it would be naive to
think that any company can easily enter the market and walk away with sizable share.
Actually the market bristles with variety of problems. 6he main problems in rural marketing
are:
A Physical Distribution
B Channel Management
B Promotion and Marketing Communication

6he problems of physical distribution and channel management adversely affect the service


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as well as the cost aspect. 6he existent market structure consists of primary rural market and
retail sales outlet. 6he structure involves stock points in feeder towns to service these retail
outlets at the village levels. But it becomes difficult maintaining the required service level in
the delivery of the product at retail level. One of the way could be using company delivery
vans which can serve two purposes- it can take the products to the customers in every nook
and corner of the market and it also enables the firm to establish direct contact with them and

6here by facilitate sales promotion. However, only the bigwigs can adopt this channel. 6he
companies with relatively fewer resources can go in for syndicated distribution where a tie-up
between non-competitive marketers can be established to facilitate distribution.
As a general rule, rural marketing involves more intensive personal selling efforts compared
to urban marketing. Marketers need to understand the psyche of the rural consumers and then
act accordingly. 6o effectively tap the rural market a brand must associate it with the same
things the rural folks do. 6his 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, melas and other activities where they assemble.
One very fine example can be quoted of ‘scorts where they focussed on deeper penetration
.In September-98 they established rural marketing sales. 6hey did not rely on 6. or press
advertisements rather concentrated on focussed approach depending on geographical and
market parameters like fares, melas etc. Looking at the µkuchha¶ roads of village they
positioned their mobike as tough vehicle. 6heir advertisements showed Dharmendra riding
‘scort with the punchline µJandar Sawari, Shandar Sawari¶. 6hus, they achieved whopping
sales of 95000 vehicles annually.
One more example, which can be quoted in this regard, is of HLL. A year back HLL started
µOperation Bharat¶ to tap the rural markets. Under this operation it passed out low±priced
sample packets of its toothpaste, fairness cream, Clinic plus shampoo, and Ponds cream to
twenty million households. 6hus looking at the challenges and the opportunities which rural
markets offer to the marketers it can be said that the future is very promising for those who
can understand the dynamics of rural markets and exploit them to their best advantage.

COMPARATIVE MARKETING STRATEGIES

Hero Honda has 35% of Honda¶s sales in the world and Honda Motor of Japan is proud to be
associated with Hero Honda. As a staunch supporter, with technology and brand support from
the global power house, Honda Motors, Japan, would immensely boost the business prospects


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in the country despite the onslaught of serve competition in the market place. µ it is our
avowed aim that Honda Motors¶, scooters and Hero Honda¶s motorcycles would together
corner 65% of the market share of two wheeler in the country¶. Primary among these were
the National Customer Survey by IMRB with a record 25,000 interviews, making it the
largest two-wheeler survey. 6his way followed up by the National Customer satisfaction
survey in September 2008. In keeping with ³6op Gear´, the company also reestablished
customer finance tie-ups with 6ata Finance. In the present Scenario, this is available in 1 0
towns and to 232 dealers a leading to a current volume of around 15000 per month. 6his
represents as much as D0% of the total customers financing . 6he dealers finance tie-ups with
Citibank and Centurion Bank. 6he current sanctions to as many as 189 dealers were worth
Rs.110Crore, he revealed. 6here had also been no opportunistic ad hoc price increases. 6he
company also took positive steps to facilitate the dealer ³Authorized representative service
extension policy. 6he corporate commitment to ³we are´ and the company¶s emphasis on
environment protection also resulted in opening the first effluent treatment plant at a
dealership. New service training centers were also established at Delhi and Chennai. While
quarterly product reviews were conducted with the factories, a unique programme of joint
visits with quality department land Japanese staff was also introduced. On the spare parts
front, multiple increases in spare policy was also overhauled and new, innovative actions
were taken leading to a volume of over 6,000 bikes in the current year itself. 6he company
also associated itself actively with sponsorship of armed forced rallies, notable among them
being the Kargil Rally and the AOC Rally. While this built up its relationship with premier
customers, the initiatives taken on other priority fronts were equally effective. Showroom
standardization was effectively detailed. World event sponsorships also helped the company
to achieve global exposure for its brand. 6he company¶s entry into the tournament events
sponsorships was equally successful. Its sponsorship of Hindi Cinema awards(Millennium
Honors held in Mumbai in January 2008, was followed up by sponsorship of Bengali cinema
(BFJA Awards ± Calcutta, August 2008) and then South Indian Cinema (Cinema ‘xpress
Awards- Chennai, November 2008).] A laudable achievements was also the signing of the
two top Leaders, veritable µDesh ki Dhadkan¶ in the field of sports (Cricket), and
entertainment (Hindi films), three years. Priyanka chopra and Hritik Roshan the two stalwarts
in their fields are also designed as brand ambassadors for Hero Honda for a period of three
years. 6he national Launch of the Hero Honda passport programme specifically targeted at
enhancing customers relationships, the implementation of the Hero worldwide safety riding
campaign at dealer Level, 6o streamile operations and sales administration, the company also
introduced the service excellence awards for SSP¶s decentralized the settlement of free


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service coupons reimbursement, reorganized the Dharuhera Service Center as the National
6raining Center, with latest technology to provide specialized advanced courses. Dealer level
implementation of the integrated dealership software package was also another significant
activity undertake. 6he major success were the volume and revenue increase of by over two
and a half times, and a market share increase in motor cycles, from 52% to from 60% and in
2 wheeler, a doubling from 36% to D0%. For the current year ending 2009, the company
would achieve a volume of over 2 million bikes under project ³OM´ and revenue in excess of
Rs.3000 crore. 6he spare parts business itself was striving for revenues of Rs. 2D5 Crores.
Service reporting at all authorized outlets would exceed the ten million mark. 6he market
perception inevitably revolved around the admirable achievement of Hero Honda as the No:-
1 two wheeler company in India. It revealed that the total customer base of the company on a
world wide basis had crossed the D million mark. 6he road envisaged in the light of these
facts was just an ambitious with the emphasis being to sustain a growth rate of 15% per
annum as well as be alert and responsive to new development particularly the resurgent and
aggressive competition with new players and bikes as in addition to the China / W6O impact
world trade organization. Hero Honda¶s own marketing initiatives as well as the emerging
potential of second hand motorcycle business. Key aspects in accessories business, social
commitment and socially relevant programmers, and communications drives were also
pointed out. Specific brand building and customers relationship exercise like the passport
programme, satisfaction survey, safety riding, campaign, service extension assistance the
various multi-levels training and development programmes, seminars and workshops, CBZ
club, product quality reviews and field quality visits were all essential and indispensable
ingredients to achieves the required results. And for this the most vital input was inevitably
the passion from one and all. D‘AL‘R 6he advantage of efficiency to keep prices reasonable
and increase customers Loyalty Is a vital components in the company¶s priorities. With D05
dealers, 1 8 SSPs and 15 stockiest, the company¶s strength in terms of dealership and service
points for the various brands in an achievement that was laudable by all counts. 6he dealers
to take the company to newer heights, and fulfill the declared version of the company that
expectation were essential in any relationship building process and for this constants
evaluation and review of the essential internal components was impressive on the part of
dealers. ‘mphasizing on the urgent need to begin the marketing initiatives on a war footing
with immediate action. 6his was one mantra that was imperative in today¶s market
environments. And the second mantra, is to stress the customers. It was thus vital to continue
to strengthen the existing customers bonds and relationship and enhance the brand loyalty
factor. Importance of small gestures like services due letter cannot be overemphasized. 6he


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effort at all times must to be provide the customers with total satisfactions on servicing. With
90 dealers had already attended the training programmes, the remaining would also be able to
derive the benefits to training through a phased training programme throughout the year. 6he
training would also be cross board, covering dealers, dealer associates, service technicians,
and senior managers. 6he chairmen also had praise for all the dealers Acknowledging their
hard work and continuous efforts he said, ³ you are the real front end of the company with the
customers and you all deserve compliments. Some of you enjoy a relationship of over 15
years with the company and same dealers have joined recently. Hero Honda dealers have
continued to demonstrate their spirited enthusiasm in aggressively promoting the Hero Honda
product range. 6hough innovative initiatives the efforts at utilizing local events, function and
programmes to maximize the impact of the companies commitment have been highly
beneficial in all fronts while local and regional interest in hero Honda brands in generated to
high Level, the awareness and the subsequent appreciation for the company¶s commitment to
customer¶s satisfaction through outstanding standards, state of the art technology and the
brand quality that is awesome in features as it in benefits is widely and skillfully generated.
6he strategic display of products also further enhance the approval accorded by the
enthusiastic on lookers and visitors at local shows.

Hero Honda vs Bajaj (2 wheeler market INDIA)

Hero Honda's strong hold on the domestic motorcycle market is getting a tough
challenge from rival Bajaj Auto.

Bajaj has been regaining its lost ground after it did a u-turn and was forced to refocus on the
100cc segment. Bajaj¶s volumes were crashing miserably after it announced its intention to
exit this segment. 6he new strategy appears to be working well for the company as its market
share in this big-volume segment has been steadily increasing. 6he under-125 cc segment
(mainly 100c) enjoys the lion's share of the domestic motorcycle market and commands D%
share of total industry sales. 6he segment is dominated by Hero Honda through its old 100cc
warhorses Splendor and Passion models, while other players, including Bajaj, have mainly
been on the fringes. However, Bajaj's decision to position its Discover model for this segment
is yielding rich dividends. Numbers for 2009-10 show that while Hero Honda still dominates
the under-125 cc segment, it has been losing market share to Bajaj Auto after the launch of
the Discover 100cc in July last year.


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Hero Honda's share fell close to 6% to D.6% at the end of the last fiscal from 80% at the end
of 2008-09.Bajaj's share increased to 1 %,up from 10.5% at the end of fiscal 2008-
09.While,Bajaj's volumes are rising steadily in the under-125 cc segment, with numbers
going up by 115% last year (9.28 lakh units),Hero Honda saw a growth of 23% (D0.55 lakh).

Splendor and Passion, the company's mainstay brands, were old bikes and thus faced a threat
from newer models. "We do not see them as old brands as we have been constantly
rejuvenating them. In any case, we are getting good sales volumes from them and thus feel
that we have no reasons to worry.

But Hero Honda has other reasons to worry too. While it is losing grip on the entry level bike
segment, rival Bajaj has been going strong in over 125cc segment, with around 50% market
share, thanks to its Pulsar brand of motorcycles. 6his segment that provides relatively higher
profit margins is crucial and has been growing at a rapid pace.

Hero Honda Hunk Vs. Bajaj Pulsar 150cc DTSi

While Here Honda is world¶s leading bike maker, Bajaj is leading Indian bike marketer.
6here certainly lies so much of a difference between the two. Honda has been there for long
in the bike market and is known for service as well as reliability and Bajaj has been an
innovator. ‘very now and then it comes with something new and innovative and no doubt
Bajaj bikes have mass appeal as well. In the Indian roads 150cc segment motorbikes have
gained popularity and is now established market leaders in world of biking because of its
awesome performance with reasonable pricing and ease of handling. It was Bajaj who
introduced Bajaj Pulsar 150cc D6Si (Digital 6win spark ignition) powered engine with
tagline of definitely male. Wonderful marketing caption as analyzed by pundits it created
uproar in 150 cc bike segment as a whole. However, Bajaj Pulsar 150cc faced competition
from the Honda¶s Hunk model. 6here is some amount of confusion amongst bike buyers as to
what they choose between the two. 6hey can¶t go for a marketing tagline and invest about
60k plus rupees on a bike. So, here is a brief comparison of the two bikes in terms of look,
performance, reliability, pricing & more.

Looks: Hero Honda Hunk model portrays a majestic look with its exquisite style and side
skirt in the tanks. Available in four colors of black, blue, silver and red, Hunk has a thump
and muscular look with its gold polished front forks and silver finished central section.
‘quipped with butterfly-like headlight, Hunk reflects a sporty look with everyone stopping
by to give a glance as it graces the Indian roads.


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However, it¶s the look of the Bajaj Pulsar that has a unique appeal. 6he fuel tank is huge with
muscle and the design of Pulsar has been tweaked in Japan to make it as one showstopper,
and the telltale headlight and the razor edged tail-end of the bike give it a fresh new look.
Pulsar also has so many gadgets and hi-fi electronic gadgets to impress. Maybe looks wise,
Bajaj pulsar 150cc D6Si seems to better the Hero Honda Hunk 150cc, but again looks are
very much subjective, ain¶t it?

Performance: 6he 150cc engine of Hunk produces 1D.2 Ps @8500 rpm and powers 12.98
Nm torque at 6500 rpm. It is here that the 150cc Bajaj Pulsar D6Si engine produces 1D.09 Ps
at 8500rpm and 12. 6 torque at 6500 rpm. 6hus the power delivery of Bajaj Pulsar is bit mild
in comparison to other bikes in the 150 cc segment. Although the engine is smooth yet it
makes noise and loses its smoothness when pushed hard. However, Honda Hunk model does
not vibrate even at a speed of 80 kmph.
6he Bajaj Pulsar 150cc model has advantage of better throttle responsiveness with its feature
of Digital 6win spark ignition. Similarly, 6he Honda Hunk model also responds with a
slightest twist. In the Pulsar model clutch works perfectly but guess the gearbox needs some
modifications. However, the Hunk model of Honda boasts of a 5-speed gearbox and the
clutch is extremely smooth and the gears can be shifted with slightest effort. Pulsar 150cc is
known to have notchy gear shifting and the clutch is not as smooth as it is in the Hunk.

Fuel Efficiency: Mileage wise Honda Hunk gives about 55-60 km/L for the economy riding
and 65 km/L on a long drive and Pulsar 150cc D6Si gives around D5-50 km/L mileage on
economy ride and about 55 on long drive (should it be driven smoothly).

Fuel Efficiency: Mileage wise Honda Hunk gives about 55-60 km/L for the economy riding
and 65 km/L on a long drive and Pulsar 150cc D6Si gives around D5-50 km/L mileage on
economy ride and about 55 on long drive (should it be driven smoothly).

Brakes: What about the disc brakes of these two motorbikes? Pulsar is equipped with good
disc brakes, but it needs to be applied carefully as the brakes of Bajaj Pulsar are extremely
sensitive. With applying front brakes too quick in the Pulsar model, it has a tendency to
topple over. However, the front wheel of Honda Hunk has a 2D0 mm disc brake and the rear
wheel is equipped with 130 mm drum breaks and that by itself provides with enough stability
in the Indian road conditions.


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Dashboard: If you are a fan of digital display panels, I am afraid that the Hunk may
disappoint you a little bit. While the Hunk has nicely designed 3 dial dashboard displaying all
the necessary details, Pulsar¶s digital console is seductive for many Pulsar fans.

Quality & Handling: Pulsar 150cc D6Si generates more noise, as it gets older; say a 2-year-
old pulsar is noisier than a new Pulsar, but hardly there is any such difference in Hunk.
However, if the rider is fond of speed drive, his Pulsar 150cc D6Si will get heated up when
driven at 60kmph speed for sometime. Yowza! Hero Honda Hunk stays cool no matter speed
driving for a considerable length of time. It also means a difference with maintenance. Pulsar
150cc D6Si warrants change in clutch plates more often than a Hero Honda Hunk. So speed
handling, Hunk betters the Pulsar.

Comfort: 6he riding position of Pulsar gives a sporty kind of feeling in comparison to the
Hunk model. Pulsar can boast of a plush ride quality with great shock absorbers. 6here are a
few who complain of awkward seating position on a pulsar and that a Bajaj Pulsar 150cc
doesn¶t make a pillion rider feel as comfortable, especially if it¶s a female. 6he riding
position of Honda Hunk is comparatively better with raised handlebars and neatly placed foot
pegs. 6he innovative gas-charged rear suspension gives a nice feeling as well. Additionally,
the cushioned seats of Hunk model are extremely comfortable for long distance ride. 6he
front seat of the Hero Honda Hunk model is separated by a step from the back seat and makes
the pillion feel, male or female, quite comfortable.

Technology: 6he digital technology incorporated into this high-flying motorbike, Bajaj
Pulsar that gives a great satisfaction of a rare and daring riding experience. 6he bike was
developed to ride in any kind of terrain with its nitrogen assisted rear gas shockers; telescopic
suspension, optimized and improved exhaust gas system. While again Hunk is also a new age
technology driven bike with low fuel consumption. Digital console of Bajaj Pulsar could be
no competition, as most new age bikes will have that feature. Again the Hunk is slightly
heavier than the Bajajs pulsar 150cc as it weighs 1D5 kg. Hero Honda Hunk lacks the L‘D
6ail lamps, digital meter and has slightly hard gearbox.

Pricing: As regards price, Bajaj Pulsar 150 cc D6Si is priced competitively at Rs.59,190 (ex-
showroom Delhi) and coming to about Rs.68,000 on road. On the other Hero Honda Hunk is
priced at Rs.55,000 (ex-showroom) with auto start as optional and costing about Rs.65,000
on road.


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Verdict: But all said and done, in the 150cc segment on the marketing front Pulsar 150 D6Si
kicked off Hero Honda Hunk, but in core biking (by which I mean quality, handling and
reliability) Hunk kicked the butt of Pulsar and there is no debate to this. Still better I would
say, ask an owner who owns a Hunk for 2 years or so, he is still a happy man to have spent
very little on maintenance and the Pulsar 150cc D6Si owner would have changed clutch
plates, shock absorbers and is already looking for an upgrade of Pulsar (if he is a diehard
Pulsar fan) or some other better model. 6he spares of Bajaj maybe cheaper than Honda but
even Auto Car India acknowledged that Bajaj as a whole suffers from quality problems.

HERO TO TAKE A CALL ON HONDA TIES BEFORE 2014

J 25-year old joint venture with Japan¶s Honda Motor , deadline in 201D

J 6he Munjals of the Hero group and Honda Motors are equal partners in Hero Honda,
India¶s largest motorcycle company.

J Honda decided to establish its 100% subsidiary in India and produce scooters and
motorcycles.

J 6he two partners have also not agreed on the issue like Honda¶s desire that the J
firm join its umbrella parts company Honda Motor India.

CORE COMPETENCIES

Core competencies provide a different approach to strategic development. Instead of

maintaining a ³portfolio´ of Strategic Business Units the large organizations need to maintain
a set of competencies within the firm which allow it top successfully pursue its strategies.
Hero Honda¶s spectacular performance ± its sales and profits have trebled to Rupees DD65
crore and Rupees D62 crore, respectively, in the last three years - have fetched it unending
kudos from corporate India. It will definitely continue to be a major player in the motorcycle
industry and may even hold on to the top slot for a long, long time to come. Hero Honda is
financially robust ± it churns out Rupees 650 crores in cash flows every year and is sitting on
free reserves of another Rupees 685 crores.

GENERIC STRATEGY


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6hree basic or generic strategies open to any business are: 1. Cost Leadership: 6his will
provide above average profits and managing all aspects of the value chain to reduce costs at
every point creates it. A cost leader will sell a standard µno-frills¶ product or service, and is
likely to be a large firm reaping the advantages of economies of scale. 2. Differentiation: A
strategy of differentiation involves meeting customer¶s needs by outperforming the
competition by offering better µvalue added¶ through a unique offer to the customer. While
most of the companies gamble with products, HHML on the other hand prefers a tried-and-
tested approach. 6hey have Managed top get consumers to buy there premium,
technologically ± superior products. 6heir strategy was to consolidate its leadership and
maximize profitability by focussing its resources on a few good products. 3. Focus: A focus
strategy may be effective where neither an overall cost leadership nor a differentiation
strategy is possible for a firm. MARK‘6 L‘D S6RA6‘GIC CHOIC‘/OP6ION
S6RA6‘GY: 1. 6hey must address the need for power in a new premium category and not in
commuter bikes. 2. Consumers are basically looking for fuel efficiency, durability, style,
power and price. Its products the Splendor & Passion offer fuel efficiency and durability.
Karizma Cbz offers style. Power and price bikes. Now they must look for new products. 3.
Not having proper in-house Product ‘ngineering skills have caused Hero Honda dearly. 6hey
must hence improve in-house Product ‘ngineering skills. D. Lack of product creation skills
also means that the speed at which Hero Honda launches new products is likely to be less
than that of its rivals. 6hus to launch new products at a speed in line with their competitors is
one strategy that Hero Honda must look in to cash on. 5. 6he company uses both imported
and indigenous raw materials and components to manufacture the motorcycles. As a result,
the increase or decrease in the import tariffs has an impact on the company's bottom line. 6he
proportion of imported and indigenous raw materials, components and spares used in FY03 is
as follows.

Imported (as % of total) Raw Material & Components Spares 1 .90 31.21 Indigenous (as %
of total) 82.1 68. 8 Hence the company must try to use more of localized/indigenous
components. Alternate Recommendations: 6he two wheeler industry in India is experiencing
a shift from Scooters to Motorcycles. In the motorcycles segment, the customers are shifting
from 2-Stroke to D-Stroke motorcycles citing fuel efficiency as a major reason. Hero Honda
must catch on this opportunity. 6his has made the ride smoother for Hero Honda. But this
coupled with the low cost of production has attracted MNC¶s to enter India in a big way. 6his
has been signaled by the arrival of Honda Motors, Japan, through its fully owned subsidiary.
6his has made the motorcycle companies to reduce their prices. Hero Honda has reduced the


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price of its leading brands by an average of Rs. 2300. 6his price cut is expected to have a
positive impact on the demand for two-wheelers. 6he company is expected to face stiff
competition from foreign players in 2010. Hero Honda must hence try to reduce the cost of
production and this can be achieved through reduction along the value chain.

CONCLUSION

"Honda, for its part, has also made similar statements. However, industry analysts do have
doubts. Says an industry analyst, "Honda's track record in India does lead to some
apprehensions. An analysis of Honda's past tie-ups in India would prove so. For instance,
Honda exited the joint venture with Kinetic by selling its stake to the promoters and launched
a replica of Kinetic Honda's ungeared scooter; its 60:D0 ventures with SI‘L for cars
progressively became a 99:1 partnership and its venture with the Shriram group for gensets
ended when it bought out Shriram's stake. 6his does throw up some questions with regards to
the path ahead for Hero Honda." 6hese examples prove that Honda has always wanted to
have its own entity, says another analyst. Most of the customers of Hero Honda belong to
congested areas. 6hey mostly belong to middle class and are mostly officials/ executives.
6hus, we conclude client has targeted the right segment. From the findings we conclude that
a customers while purchasing a bike, customers takes into consideration mainly fuel
efficiency, good looks, low maintenance cost and reliability. 6he main competitors of Hero
Honda are Bajaj Auto, Yamaha and 6S. 6he consumer preference basically depends upon
wider network and better services. Customers are influenced more to buy a product by
advertisements rather than dealer friend¶s or family recommendations.


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BIBLIOGRAPHY

News and views from marketing division of hero honda.

Ame business magazine.

Auto magazine.

Business india

Financial express

Business line

www. indiainfoline.com

www. herohonda.com

www.economictimes.com


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