Preface

The topic chosen by me for my project is marketing strategy

“In reference to hero Honda automobiles the two wheeler especially

in the stylish motorcycle. At present hero Honda is market leader in

the Indian market.

Today there are various companies coming in Indian and these

certainly will exist a cutthroat competition in these field . I have

chosen a hero Honda as a topic essence of my project .today two

wheeler consumer due to new manufacturing entrant has started

getting a wide choice while buying one these gave to considered the

facility provided by the two wheeler the price mileage , maintenance

and service etc. while buying a two wheeler .

A normal customer is quit puzzled and faces for an uneven some

time huge problems in deciding which vehicle to buy. I realized the

problem and decide to take these up as the challenge and provide

answer to as the requirement of the Hero Honda.

Chapter - 1

Introduction
Satisfaction is the persons feeling of pleasure (or) disappointment

resulting from comparing a product perceived performance (outcome)

in relation to his/her expectation. if the performance fall short of

expectation the customer is dissatisfied . if the performance matches

the exception the customer is satisfied if the performance exceeds

the expectation the customer is highly satisfied ( or ) delighted many

companies are aiming for high satisfaction because they are much

ready to switch. ]

Buyer’s expectation formed on the basis of past buying experience,

friend and the associate advice and the marketers and the

competitor’s information and promises. if marketers raise

expectations two high , the buyer is likely to be disappointed . Even if

the company sets expectation should match the performances.

≈} A customer is the most important person even in

any company

≈} A customer never depend on company, but the

company depends on him.

≈} A customer is the person who bring company his

 Wants.

≈} A customer is not a interruption of marketers

Work he is the purpose of it.

Two wheelers in India

In 60 decade several vehicles were running in the Indian roads those

are the sun beams, AIS, BBA and Royal Enfield. From these motor

cycles only the Royal Enfield has existence in the motorcycle market.

After 60 decade some other motorcycles and scooter had been

launched in Indian two wheeler market those are the Rajdoots, Java,

Vespa and Lamrata .

Indian witrossed the first spate of modernization in two wheeler

industry in 1978-79 during that period Piaggio sauntered the Indian

market in a joint venture with the Lohia machines and our major
Japanese motor cycle manufacture set up joint venture companies to

produce 50cc two wheeler for the first time.

Objectives of the study

≈} To know the customers expectations

towards hero Honda.

≈} to find out the customer opinion regarding

 Various aspect of the bike.

≈} To give the appropriate suggestion to the

company regarding he performances.

Our brand

Our brand identity:

  Our brand is the visual expression of the ought and the action it

conveys to everyone our intention two constantly inspire the

confidence.

 Our customers are the primary audience for our brand.

 Indeed, our brand identity is shaped as much by their belief in

hero Honda as the as it it’s our brand.

 We can do this by the living on the brand essence and by

continuously seeking to enhance our customer experience.

 In doing so, we ensure a special pace for our self in the heart

and in the mind of the customer.

Our brand essence

 Our brand essence is thje soul of our brand

 Our brand essence encapsulates or mission at Herohonda

 It is the singular representation of our terms of endearment

with our customers.

 It provies the basis on which we grow profitability in the

market.
  Our brand essence is excitement

 Hero Honda strives to inspire the confidence through te

excitement engineering.

 Blending together youthfull creativity and competitive

technology to exceed the spoken and the implict

expectations of our customers.

 By challenging the given . by exploring the unknown and

thereby stretching ourself towards tomorrow, today.

Learning

 Learning is how we insure our proactively

 It is the values that embraces knowledges as the plat form

for the building well informed.

Innovation

 It is how we can create the future

 It is that which provokes us to reach beyond the abivous in

persuite of that which exceeds the ordinary.

Speed

 It is how we convey clear convection.

 It is the value that keeps us sharpley responsive , mirroring

our commitment towards our goal and process.

Chapter -2
 History

India has the largest number of two wheeler in the world

with41.6 million vehicles. India has a mix of 30 percent automobile

and 70 % two wheeler in the country. India was the second largest

two wheeler manufacture in the world starring in 1950’s with the

British automobiles product of India (API) that manufactured the

scooter. API manufacture the lamberts but, another company Bajaj

automobiles LTD. Surpassed API and remaining through the turn of

the century from its association with piaggio of Italy

(Manufacturer of Vespa)

The license raj that exist between the 1940s to 1980s in India ,

did not allow the foreign companies to enter the market and import

were tightly controlled .these regulatory maze , before the economic

liberalization , made the business easier for local player to have a

seller market . Customer in India was forced to wait 2 years to buy a

scooter from Bajaj. The CEO of Bajaj commented that he did not

make a marketing department, only in dispatch department. By the

year 1990, Bajaj has a waiting list that has twenty six times of annual

output for scooter.

The motorcycle segment has the same long wait time with three

manufacture; Royal Enfield, ideal Jawa and Escorts. Royal Enfield

made a 350cc bullet wit the only four – stroke engine at that time and

took the higher end of the higher end of the market but , there was

little competition for there costumer . Ideal Jawa and escorts took the

middle and lower end of the market respectively.

In the mid-1980s the Indian government regulation changed and

permitted companies to enter the Indian through minority joint

venture. The two wheeler market with for indo Japanese joint venture:

Hero Honda TVS S Suzuki, Bajaj Kawasaki and kinetic Honda. The

entry of these foreign companies changed the Indian market

dynamics from the supply side to demand side with a large selection
of two wheelers on Indian market customer started gain over the

product they bought and raise the higher customer expectation.

 Hero entered the joint venture for technical and financial

participation with one of the largest automotive makers

 Honda motors company limited of Japan, in 1984 for the

manufacturing of 100cc motor cycles in India.

 Group companies Hero corporate service limited – Hero

mind mine –munlal

In 1984-1985 HHML came in existence by collaboration of hero motor

limited and Japans Company Honda motors limited for the first 100cc

with four stroke motorcycle is made by Hero Honda motor limited in

India.
Company profile

Hero is the brand name used by the Munjal brother in the year 1956

with the flag ship company hero cycle’s .the two wheeler

manufacturing business of bicycle component had originally started in

the 1940’s and turned in the world largest bicycle manufacture today.

The Munjal run their own steel make free wheel and other critical

bicycle component and and have diversified in to different like product

design. the Hero group philosophy is;

“ to provide excellent transportation to the common man at

easily available and affordable and to provide the total

satisfaction in all its sphere of activity “

he hero group has a passion for setting the higher standard and

engineering satisfaction is the prime motivation way of life and work

culture of the group .

In year 1984 Mr. Brijmohan lal munjal , the chair man and managing

director of hero Honda motors , headed an alliance between the

Munjal family and Hero Honda company LTD HHM mission statement

is :

” we, at hero Honda , are continuously striving for synergy

between technology , system and human resources to provide

product and services that meet the quality price and aspirations

of the customer”.

Product profile

Price list

Model PRICE RTO INS TOTAL

CD-Dawn 32900 1699 845 35444

CD-DLX(MAC) 36650 1850 918 39467

PLEASURE 36740 1850 912 39502

SPL.NXG 39550 2050 999 42599

SPL.PLUS 41250 2099 999 42599

PASION PLUS 43750 2105 1005 46905

SUP.SPL.(RING) 44150 2199 1024 47373

SUP.SPL(MAC) 44900 2399 1109 48408

GLR.(MAC/SELF) 46250 2250 1055 49555

GLR.(DISK/SELF 48250 2350 1086 51686

CBZ.EXE (SELF/DISK) 57500 2750 1218 61468

HUNK 57000 2725 1216 60941

KARIZMA 73900 3400 1446 78746

CD-DELUXE(RING) 35400 1800 899 38098

Colors in Vehicle

 GLAMOUR

Candy blazing red, cloud silver metallic, tornado metallic

grey, impulse orange metallic, excellent blue

metallic.

 CD DELUXE

Candy blazing red, cloud silver, candy Tahitian blue,

amaranth maroon, cool mint grey.

 SPLEDOUR
 black candy red , blaze , boon silver, metallic, sierra metallic,

granti blue metallic.

 PLEASURE

Orange , Candy blazing red, grey silver, Tahitian blue

metallic.

 CD DAWN

Black ,maroon, red

 CD 100SS

Candy ruby red black , amazing blue metallic,green metallic.

 PASSION PLUS

Moon yellow, cloud silver ,amaranth maroon, Tahitian blue,

Candy blazing red,black with purple strips.

 KARIZMA

Green , sky blue black metallic, yellow shade.

Hero Honda’s Marketing Strategies in India

New Delhi, October 21, 2008: Hero Honda Motors Ltd

(HHML), the world's largest two-wheeler company for seven

consecutive years, today firmly reiterated its undisputed

leadership in the domestic two-wheeler market with

impressive bottom line growth for the second quarter (Q2)

– July to September - of this financial year (FY) 2008-09.

Even as the industry continued to face tough market conditions

on account of uncertainty over interest rates and overall credit

squeeze, the company reported 50 per cent growth in profit

after tax (PAT) at Rs 306.30 crore for the second quarter. Hero

Honda's profit after tax in the corresponding period last fiscal

(July - Sept, 2007-08) stood at Rs 204.33 crore.

Total turnover (Net sales & Other Operating income) grew to Rs

3202 crore, a growth of 35.6 per cent over Rs 2361 crore

recorded in the corresponding period last fiscal. The company

has recorded an EBIDTA margin of 13.58 per cent in the

quarter. The EBIDTA margin in the previous quarter (April -

June '08) was 12.20 per cent.

The strong financial performance is in line with the company's

better-than-industry top line growth. After posting a growth

11.38 per cent in the first quarter, the company kicked off the

second quarter with a 39.8 per cent growth in sales in the month

of July, and followed up with 26.8 per cent growth in August and

22.4 per cent in September. Hero Honda consistently keeps

growing its share in the domestic motorcycle market, and

currently enjoys over 55 per cent share.

 Dr. Brij Mohan Lall, Chairman, Hero Honda Motors Ltd,

Said "We are happy with our financial performance. It gives immense

joy to see this kind of results in the 25th year of our company. I wish

to thank all our stakeholders – customers, associates, dealer friends,

ancillaries and also our joint venture partners Honda Motors Co – for

their continuous support."

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors

Ltd,

said "Our numbers speak for themselves. Even in this volatile and

competitive environment, our top line continues to outpace the

industry growth, our market share is at an all time high, and the

financial balance sheet is a delight – all the factors which form the

hallmark of a resilient company with cutting-edge management. We

will continue to keep innovating – in bringing in technologically-

superior products, in our network expansion, in brand building, in our

financial management, and in our communication."

"Going forward, we will have to keep a close watch on the commodity

prices movement, and other factors such as inflation, interest rate

scenario and availability of retail finance. These factors will play a

crucial role in the industry growth in the subsequent quarters," he

added.

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd ,

“The year 2007-08 has seen a leadership performance from us.

Despite the industry slowdown, we have been able to manage

positive growth thereby taking our share in the domestic motorcycle

market upward of 52 per cent. At the end of the financial year, I would

definitely like to thank our millions of customers across the country,

who have made it possible. We will continue to focus on our

customers and they can surely look forward to many more launches

and various initiatives in the coming year.”

HHML’s good run through the industry slump in 2007 has been

possible due to the company’s multi-focal strategy of bringing in new

models and variants across segments, supporting them with

innovative communication across media, leveraging properties such

as cricket and entertainment for brand building and augmenting its

distribution network

(HERO HONDA CONSOLIDATES MARKET LEADERSHIP WITH

IMPRESSIVE GROWTH OF 15% IN MARCH’09

FOR FY 2008-09, HERO HONDA OVERTAKES PREVIOUS

FISCAL’S SALES TALLY, EVEN AS DOMESTIC MOTORCYCLE

INDUSTRY DECLINES BY MORE THAN 10 %)

HERO HONDA CONTINUES TO CONSOLIDATE MARKET

LEADERSHIP WITH 27 PER CENT GROWTH IN AUGUST SALES

New Delhi, Tuesday, April 21, 2009: Reports robust sales of

305,516 units during the month

Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda

Motors Ltd, “Our strategy is yielding results. The strategy hinges on

creating winning brands across segments, investing in brand building,

exploring untapped markets in rural and upcountry areas while

consolidating urban presence and rapidly expanding our network.

However, the industry continues to face uncertainty on account of

high interest rates and overall credit squeeze. The festival month of
October is going to be crucial in determining the overall outlook of the

industry for the year.”

Key Hero Honda brands continue to drive strong volumes across

segments - CD Deluxe in entry segment, Glamour, the new Splendor

NXG, Splendor + and Passion Plus in deluxe segment, and Hunk,

CBZ X-treme and Karizma in the premium segment.

Hero Honda’s scooter Pleasure has also been growing strongly,

with more than 12,000 units being sold in August this year.

New Delhi, Tuesday, April 21, 2009: Highlights

Corporate performance: • Consolidated over 50% share in the

domestic motorcycle market

• Reported highest ever sales in a month in October 2007

(365,022 units)

• Crossed half a million retail sales in the festive season

• Closed calendar year 2007 with sales of over 33 lakh two-

wheelers

Mr. Pawan Munjal, Managing Director & CEO, Hero Honda

Motors Ltd.

said, “Given the industry slowdown scenario, we are very

enthused by our robust financial numbers for the third quarter.

However, this was not unexpected. We had undertaken some

strategic initiatives since the beginning of this fiscal, including a

conscious effort to rationalize costs across the board, and its

results are now visible. Our bottom line has seen a consistent

improvement, and we have been able to demonstrate that it is

possible to keep gaining market share while maintaining a

robust bottom line.

“With input costs softening and our sharp focus on cost

efficiencies, we should be able to further improve upon our

financial results,” he added.

Hero Honda's strategy for aggressive top line growth through

new product launches, brand building initiatives backed by

innovative communication has resulted in market share gain

across every segment. Indeed, Hero Honda’s share in domestic

motorcycles market has been growing upward of 50 per cent,

despite the slowdown in the two-wheeler industry.

SEGMENTATION, TARGETING & POSITIONING

From the current segmentation, targeting & positioning and

consumer surveys we found that our client has targeted the

following segments:

♦ Congested areas of urban cities.

♦ Males/Females between the age group of 18-36

♦ Middle class people , mostly officials & executives

The client analysis from our questionnaire it was found that our client

has targeted the right segment

HHML & TVS 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. Therefore, in order to meet

the sales target, two options are available with the client; one is

to redesign the bike and second is to reposition the bike as

“Bike with one time investment”. Since redesigning of bike may

involve a big task and huge investment therefore we

recommended repositioning the bike.

The gap between motorcycles sold by Hero Honda and its closest

rival is approximately 1 m units (23% of industry size). One of the

reasons for the tremendous performance of Hero Honda is the

significant increase of share of motorcycles in the two-wheeler

segment, from 42% in FY99 to 77% in FY04. No doubt, that the shift

in preference of Indian populace from scooters and mopeds towards

motorcycles has facilitated the growth of Hero Honda. However its

performance vis-à-vis industry indicates that the performance of Hero

Honda was better than the industry peers, barring two years. In the

seven-year period ending FY04, it has achieved a CAGR of 30% in

two-wheeler volumes against 11% of the industry.

 Segmentation Positioning

Targeting

Key factor of marketing strategy

“India and Bharat co- exist today. India comprises of fast growing

cities and town; Bharat is made up of villages entering the economic

main stream. We seek to walk & march with both India and Bharat”
Strong Fundamentals

The company has clarified about its intention of setting a third plant

in addition to its existing two plants. The company has embarked

upon a green field expansion plan and has earmarked Rs 2 bn for the

same. It should be noted that the company has a strong cash flow
position, it generated Rs 9 bn from operation in FY04 and is virtually

a debt free company.

EXAMPLES

Super Splendor

This Bike comes with 125 cc new generation quantum core engine

with an output of 9 bhp (6.7 kw). Its relaxing seating arrangement with

other comfort features like less strain while clutching and declutching,

low noise and less vibration engine etc, makes it more market friendly

bike.

For the convenience of the biker, there are few features included here

are trip meter, peep hole, large utility box etc. Some safety features

included here are pass switch and push cancel indicator switch,
muffler with heat shield etc.

Splendor +

4 stroke single cylinder lair-cooled, OHC engine delivers power of 5.5

Kw (7.5PS) @ 8000 rpm . Running with the maximum mileage of 85

kmph, this bike is giving the optimum satisfaction for long journey.

Its double cradle frame gives the steadiness in biking. Its wider 1230

mm wheelbase provides the proper base for safer riding.

Lighting fitting included in it like multi reflector with halogen bulb

makes the biking secured at every time.

Splendor NXG
Splendor NXG comes with a new engine and pioneering features and

combines stylish looks with a high performance engine. It features

trapezoidal multi -reflector headlamps which is powerful even at low

speeds. This is achieved by powerful battery which powers the DC

high beam in the headlamp and its strength is not dependent on the

engine rpm. Circuitry for the low beam and pilot lamp has also been

enhanced for low variation in intensity arising from changes in the

engine rpm.

Segmentation of Hero Honda Splendor: -

Geographical Segmentation

Geographic Segmentation calls for division of the market into

different geographical units such as nations, states, regions,

countries, cities, or neighborhoods. In the South Asian context,

geographic segmentation assumes importance due to variations

in consumer preferences and purchase habits across different

regions, across different countries, and across different states

in these countries.

Demographic Segmentation

In Demographic Segmentation, we divide the market into groups

on the basis of variables such as age, family size, family life

cycle, income, occupation, education, religion, race, generation,

nationality and social class. One reason demographic variables

are so popular with marketers in that they’re often associated

with consumer needs and wants. Another is that they’re easy to

measure. Even when we describe the target market in non-

demographic terms (say, by personality type), we may need the

link back to demographic characteristics in order to estimate the

size of the market and the media we should use to reach it

efficiently.
Psychographic Segmentation

Psychographics is the science of using psychology and

demographics to better understand consumers. In

psychographic segmentation, buyers are divided into different

groups on the basis of psychological/personality traits, lifestyle,

or values. People within the same demographic group can

exhibit very different psychographic profiles. Values and

lifestyles significantly affect product and brand choice of

consumers. Religion has a significant influence on values and

lifestyles. The strict norms that consumers follow with respect

to food, habits or even dress codes are representative examples

in this regard.
 The four groups with higher resources are:

1. Innovators: - successful, sophisticated, active, “take- charge”

people with high self-esteem. Purchases often reflect cultivated

tastes for relatively upscale, niche-oriented products and services.

2. Thinkers- mature, satisfied, and reflective people who are

motivated by ideals and who value order, knowledge and

responsibility. They seed durability, functionality, and value in

products.

3. Achievers- successful, goal-oriented people who focus on

career and family. they favor premium products that demonstrate

success to their peers

4. Experiences- Young, enthusiastic, impulsive people who seek

variety and excitement. They spend a comparatively high proportion

of income on fashion, entertainment and socializing.

The four groups with lower resources are:

1. Believers- conservative, conventional, and traditional people with

concrete beliefs. They prefer familiar products and are loyal to

established brands.

2. Strivers- trendy and fun-loving people who are resource

constrained. They favor stylish products that emulate the

purchases of those with greater material wealth.

3. Makers- Practical, down-to-earth, self-sufficient people who like to

work with the hands. They seek products with a practical or

functional purpose.

4. Survivors- Elderly, passive people who are concerned about

change. They are loyal to their favorite brands.

Behavior Segmentation: -

In behavioral segmentation, marketers divide buyers into groups

on the basis of their knowledge of, attitude toward, use of, or

response to a product.

Decision Roles:

People play five roles in a buying decision: Initiator, Influencer,

Decider, Buyer and User. Recognition of the different buying roles

and specification of the people who play these roles for specific
products and services are vital for marketers. This is especially

useful for designing the communication strategy.

Behavioral Variables:

Many marketers believe behavioral variables-occasions, benefits,

user status, usage rate, buyer readiness stage, loyalty status, and

attitude-are the best starting points for constructing market

segments.

Market Targeting: -

Effective Segmentation Criteria

To be useful, market segments must rate favorably on five key

criteria:

 Measurable, the size, purchasing power and characteristics of

the segments can be measured.

 Substantial, The segments are large and profitable enough to

serve. A segment should be the largest possible homogenous

group worth going after with a tailored marketing program. It

would not pay, for example, for an automobile manufacture to

develop cars for people who are less four feet tall.

 Accessible, The segments can be effectively reached and

served.

 Differentiable, The segments are conceptually distinguishable

and respond differently to different marketing-mix elements

and programs. If married and unmarried women respond

similarly to a sale on perfume, they do not constitute separate

segments.
  Actionable, Effective programs can be formulated for attracting

and serving the segments.

Evaluating and Selecting the Market Segments

Single- Segment

Concentration

M1 M2 M3

P1

P2

P3

Selective Specialization

M1 M2 M3
P1

P2

P3

Product Specialization

M1 M2 M3

P1

P2

P3

Market Specialization
 M1 M2 M3

P1

P2

P3

Full Market Coverage

M1 M2 M3

P1

P2

P3

Single Segment Concentration:-

The farm equipment division of Mahindra & Mahindra concentrates

on tractors, primarily targeted at agricultural markets. The Zodiac

brand concentrates on formal shirts for executives and professionals.

Especially hospitals focus on specific therapeutic areas such as

cancer care, heart specialty, neonatal care and gynecology. Through

concentrated marketing, the firm gains a strong knowledge of the

segment’s needs and achieves a strong market presence.

Furthermore, the firm enjoys operating economies through

specializing its production, distribution and promotion. If it captures

segment leadership, the firm can earn a high return on its investment.

Selective specialization: - A firm selects a number of segments,

each objectively attractive and appropriate. There may be little or no

synergy among the segments, but each promises to be moneymaker.

This multi segment strategy has the advantage of diversifying the

firm’s risk. When Procter & Gamble launched crest White strips, initial
target segments included newly engaged women and brides to be as

well as gay males.

Product specialization: - The firm makes a certain product that

it sells to several different market segments. A microscope

manufacturer, for instance, sells to university, government, and

commercial laboratories. The firm makes different microscopes for

the different customer groups and builds a strong reputation in the

specific product area. The downside risk is that the product may be

supplanted by an entirely new technology.

Hero Honda used Product Specialization for target market of

Hero Honda Splendor.

Market specialization: - The firm concentrates on serving many

needs of a particular customer group. For instance, a firm can sell an

assortment of products only to university laboratories. The firm gains

a strong reputation in serving this customer group and becomes a

channel for additional products the customer group can use. The

downside risk is that the customer group may suffer budget cuts or

shrink in size.
 Full market coverage: - The firm attempts to serve all customer

groups with all the products they might need. Only very large firms.

Such as Microsoft (software market), General motors’ (vehicle

market), and coca-cola (nonalcoholic beverage market).

Additional considerations

Two other considerations in evaluating and selection segments are

segment-by-segment invasion plans and ethical choice of market

targets.

Segment-by-segment invasion plans: -

A company would be wise to enter on segment at a time. Competitors

must not know to what segment(s) the firm will move into next.

Segment-by-segment invasion plans are illustrated three firms, A, B,

and C, have specialized in adapting computer systems to the needs

of airlines, passenger transport, and goods transport companies.

Company A meets all the computer needs of airlines.

 Ethical choice of market targets: -

marketers must target segments carefully to avoid consumer

backlash. Some consumers may resist being labeled. Singles may

reject single. Serve food packaging because they don’t want to be

reminded they are eating alone. Elderly consumers who don’t feed

their age may not appreciate products that identify them as “old”

market targeting also can generate public controversy.

Positioning: -

Positioning is the act of designing the company’s offering and image

to occupy a distinctive place in the minds of the target market, the

goal is to locate the brand in the minds of consumers to maximize the

potential benefit to the firm. A good brand positioning helps guide

marketing strategy by clarifying the brand’ essence, what goals it

helps the consumer achieves, and how it does so in a unique way.

Everyone in the organization should under- stand the brand

positioning and use it as context for making decisions.

Competitive Frame of Reference

A starting point in defining a competitive frame of reference for a

brand positioning is to determine category membership-the products

or sets of products with which a brand competes and which function

as close substitutes. Competitive analysis will consider a whole host

of factors-including the resources, capabilities and likely intension of

various other firms-in choosing those markets where consumers can

be profitably served.
Product:-

Core Product: -

The core product or benefit of Hero Honda Splendor is Travelling and

saving the time by reach on desire place at right time.]

Basic Product: -

The basic product of Hero Honda splendor are Engine, Handle,

Shockers, Wheels, Gear box and chain set etc.

Expected Product: -

The expected products of Hero Honda splendor are: -

1. It should be 5 gear boxes.

2. It should be 90 Km/l mileages.

3. It should be 120 Km/hour Maximum speeds.

4. It should be disk brake or power brake.

5. It should be steel body.

6.

Augmented Product: -
The augmented products of Hero Honda Splendor are: -

1. It provides monthly check up for decrease the pollution.

2. It provides fast service of the product.

Pricing Strategy: -

Penetration Pricing: -

The price charged for products and services is set artificially low in

order to gain market share. Once this is achieved, the price is

increased. This approach was used by France Telecom and Sky TV.

Hero Honda Used penetration pricing strategy because that time

Hero Honda use National Segment and low income persons so they

used penetration strategy.

Price Skimming: -
Charge a high price because you have a substantial competitive

advantage. However, the advantage is not sustainable. The high

price tends to attract new competitors into the market, and the price

inevitably falls due to increased supply. Manufacturers of digital

watches used a skimming approach in the 1970s. Once other

manufacturers were tempted into the market and the watches were

produced at a lower unit cost, other marketing strategies and pricing

approaches are implemented.

Premium pricing, penetration pricing, economy pricing, and price

skimming are the four main pricing policies/strategies. They form the

bases for the exercise. However there are other important

approaches to pricing.

Promotion: -

Below the Line Promotion: -

‘Below The Line is a common technique used for touches and feel

products. Those consumer items where the customer will rely on

immediate information than previously researched items. Below The

Line techniques ensure recall of the brand while at the same time

highlighting the features of the product.

Above The Line Promotion: -

Above the line (ATL) is an advertising technique using mass media to

promote brands. Major above-the-line techniques include TV and

radio advertising, print advertising and internet banner ads. This type

of communication is conventional in nature and is considered

impersonal to customers. The ATL strategy makes use of current

traditional media: television, newspapers, magazines, radio, outdoor,

and internet.

Hero Honda used Above the Line Promotion because in the Above

the Line promotion co. members used advertisement through Radio,

T.V., Newspaper and Other media communications.

Place: -

Geographical Placing: - Geographical placing of the product

has divided into 4 markets and these are: -

1. Local

2. National

3. Regional

4. International

Hero Honda used National Market for sale the Hero Honda Splendor.
Considering all facts of marketing in a unique way for proper

and efficient definition of marketing.

Marketing threats
MANAGING RISK IS

HALF THE BATTLE WON

RISKS AND CONCERNS

• Slowdown: Sales in the lucrative premium two wheeler segment

(150 cc and above) have been affected by the economic slowdown; a

quick return to robust growth is unlikely, and this could affect Hero

Honda's near term plans for an increased

presence in this segment.

• Interest rates: Lending rates have started softening but effective

lending rates for the two-wheeler industry remain high on account of

risk aversion by banks. However, Hero Honda has de-risked its

business by focusing on segments which are not too dependent on

financing. Still, if interest rates for two-wheelers continue to remain

high and the overall credit-squeeze persists, it is likely to adversely

impact the company's efforts in realizing its full growth potential.

• Inflation: After climbing to double digits in the first half, inflation

growth was close to zero per cent by year-end. However, high fiscal

deficit and rising food prices could push up inflation again during the

year. Rising inflation may limit the downward

trend in interest rates.

• Increasing competition: Several two-wheeler companies

introduced new models in the lucrative premium segment; over time

this could impact the profitability of this segment. At the same time,

the expected fresh competition in the 100 cc segment

in 2010 poses a challenge to the company's stronghold on this

segment.

• Input costs: Prices of critical inputs came down during the year

thanks to lower commodity prices. However, prices may be close to

bottom levels, and may start perking up in the second half of the

coming year if there is an economic revival.

HERO HONDA'S PERFORMANCE

SETTING THE BENCHMARK

Hero Honda was the torchbearer for the two-wheeler industry during

the year in review. It sold more two wheelers during the year than the

combined volumes of the second, third and fourth placed competitor.

Overall, the company sold 3.72 million two-wheelers, up 12 per cent.

Motorcycle sales in the domestic

market, which account for more than 95 per cent of Hero Honda's

sales, were up 11 per cent.

During the year, the company also turned in a rollicking performance

with its scooter portfolio, with a 49 per

cent growth in domestic sales to 156,210 units. This performance

allowed Hero Honda to increase its share

in the domestic scooter market by more than three percentage points.

Hero Honda's performance in the two-wheeler industry was the only

standout performance during the year amongst the large players.

Without Hero Honda's numbers, the two wheeler industry growth

would have been marginal.

Planni
ng
 Planni
ng

observ
control
e

These prime constitutes a proper set up of the

marketing program in order to get the desired output.

Products of the company
Bibliography

WEBSITE:

WWW.HEROHONDA.COM

WWW.HEROCYCLES.COM

WWW.WEKIPEDIA.COM

WWW.TIMESOFINDIA.COM

HTTP://WWW.THEHINDUBUSINESSLINE.COM

HTTP://ECONOMICTIMES.INDIATIMES.COM/SEARCH.CMS

WWW.INDIAINFOLINE.COM

HTTP://WWW.FADAWEB.COM/INDIA

BOOKS:

AUTOCARE

OVERDRIVE
INDIA AUTO