Marketing project report on hero motocorp

Marketing project report on hero motocorp

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History of Hero MotoCorp
Hero MotoCorp is the World's single largest two –wheeler motorcycle
company. Motor Company of Japan and the Hero Group entered a joint
venture to setup Hero Motors Limited in 1984. The joint venture
between India's Hero Group and Motor Company, Japan has not only
created the world's single largest two wheeler company but also one of
the most successful joint ventures worldwide.
During the 80s, Hero became the first company in India to prove that it
was possible to drive a vehicle without polluting the roads. The company
introduced new generation motorcycles that set industry benchmarks for
fuel thrift and low emission. A legendary 'Fill it – Shut it – Forget it'
campaign captured the imagination of commuters across India, and Hero
sold millions of bikes purely on the commitment of increased mileage.
Over 20 million Hero two wheelers tread Indian roads today. These are
almost as many as the number of people in Finland, Ireland and Sweden
put together. Hero has consistently grown at double digits since
inception; and today, every second motorcycle sold in the country is a
Hero. Every 30 seconds, someone in India buys Hero 's top –selling
motorcycle – Splendor. This festive season, the company sold half a
million two wheelers in a single month—a feat unparalleled in global
automotive history.
Hero 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 bikes currently roll out from its three globally benchmarked
manufacturing facilities. Two of these are based at Dharuhera and
Gurgaon in Haryana and the third state of the art manufacturing facility

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was inaugurated at Haridwar, Uttrakhand in April this year. These plants
together are capable of producing out 4.4 million units per year.
Having reached an unassailable pole position in the Indian two wheeler
market, Hero is constantly working towards consolidating its position in
the market place. The company believes that changing demographic
profile of India, increasing urbanization and the empowerment of rural
India will add millions of new families to the economic mainstream. This
would provide the growth ballast that would sustain Hero in the years
to come. As Brijmohan Lall Munjal, the Chairman, Hero Motors
succinctly points out, 'We pioneered India's motorcycle industry, and it's
our responsibility now to take the industry to the next level. We'll do all it
takes to reach there.''
 Vision
The story of Hero Honda began with a simple vision - the vision of a
mobile and an empowered India, powered by its two wheelers. Hero
MotoCorp Ltd., company's new identity, reflects its commitment towards
providing world class mobility solutions with renewed focus on expanding
company's footprint in the global arena.
 Mission
Hero MotoCorp's mission is to become a global enterprise fulfilling its
customers' needs and aspirations for mobility, setting benchmarks in
technology, styling and quality so that it converts its customers into its
brand advocates. The company will provide an engaging environment for
its people to perform to their true potential. It will continue its focus on
value creation and enduring relationships with its partners.
 Core Values
Integrity
Adherence to ethical and moral principles

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Humility
Absence of arrogance, open mind towards absorbing new ideas,
innovations and learning
Excellence through Teamwork
Persistence and striving towards perfections in all our actions, products
and services
Speed
Responsiveness in all our actions; ability to execute, implement strategies
Respect
Towards elders, seniors; everything worthy in the material, spiritual and
the intellectual world; towards systems, processes and values
 Awards won by HeroMotocorp
 Received the 1991 Harvard Business School Award for Corporate
Performance by Economic Times.
 Received the NSIC award - National Award for outstanding
contribution to the Development of Indian Small Scale Industry by
the President of India in 1995.
 Received the 1999 National Productivity Award for the Best
Productivity Award in the category of Automobile & Tractor by the
Vice President of India.
 Received the Most Respected Company Award in Automobile Sector
by Business World in 2003.
 Received the 2006 Top Indian Company in the Automobile - Two
Wheeler sector by American Express Corporate Awards.
 CBZ Xtreme won the 'Bike of the Year' award at the NDTV Profit
Car India & Bike India Awards 2007.
 Received the Business Leadership Award by NDTV Profit in 2008.

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 Hunk won Bike of the Year at the TopGear Design Awards in 2008.
 Won Two-wheeler Manufacturer of the Year at the NDTV Profit Car
& Bike Awards 2009.
 Won the Company of the Year award at the Economic Times
Awards for Corporate Excellence 2008-09 in 2010.
 Adjudged as the best brand in the Auto (Two-Wheelers) category in
the Brand Equity "Most Trusted Brand" 2011 survey.
 Adjudged the Business Leader in Automobiles (two-wheelers) at the
NDTV Profit Business Leadership Awards 2012.
 Received Business Leader of the Year Award by the President of
India, Shri. Pranab Mukherjee, at the AlMA Managing India Awards
2013.
 Hero Motocorp Plant Locations in India
Hero MotoCorp has manufacturing facilities located at five locations in
India. The five manufacturing plants of Hero MotoCorp have a combined
production capacity of more than 9 million vehicles annually.
 Satyavedu, Andhra Pradesh
 Dharuhera, Haryana
 Gurgaon, Haryana
 Neemrana, Rajasthan
 Haridwar, Uttarakhand
Hero MotoCorp has over 7,000 dealership and service centre units in 29
states and four union territories of India.

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Map showing Hero Motocorp plants in India

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LIST OF ALL THE PRODUCTS/BRANDS

Being the largest manufacturer of two-wheelers in India and the world,
Hero MotoCorp produces a diversified range of models and variants to
cater to the needs and demands of its customers.

Following are the current models.

Scooters
 Pleasure
 Maestro Edge
 Duet

Motorcycles
 HF Dawn
 HF Deluxe
 HF Deluxe Eco
 Splendor+
 Splendor Pro
 Splendor Pro Classic
 Splendor iSmart
 Splendor ismart 110cc
 Passion Pro
 Passion Pro TR
 Passion XPro
 Super Splendor
 Glamour
 Achiever
 Impulse
 Hunk
 Xtreme (Thriller in LATAM)
 Xtreme Sports (Thriller
Sports in LATAM)
 Karizma
 Karizma ZMR

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TWO BRAND OUT THE WHOLE PORTFOLIO

1. Hero Pleasure
2. Karizma ZMR

BRANDLOGO AND TAGLINE
1. Hero Pleasure

“WHY SHOULD BOYS HAVE ALL THE FUN? ”
2. Hero Karizma ZMR

“WHERE ONE JOURNEY ENDS ANOTHER STARTS. ”

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Four P’s OF MARKETING

1. 4p’s for karizma ZMR
 PRODUCT
Products are the means by which organizations satisfy consumer needs.
The elements of then product mix which the marketer can control include
quality levels, styling, special design features, durability, packaging,
range of sizes or options, warranties, after-sales service and brand image.
The ranges of products offered by firms need to adapt to changes in the
marketing environment.
Hero has launched Karizma ZMRR with following elements:
Karizma ZMR is a very stylish bike. It focused on youngsters. It looks
very great with black magnesium alloy die -cast wheels dual light
tailpiece, front indicators, the stunning colors, the powerful 225 cc
engine,the fairing, silencer unit, stepped up seat, panel shapes and new
yellow black instrument binnacle. The tank holds 15 litres of fuel.
This is a sporty bike and youngsters like only sporty bikes. It is available
with five colors that are Red, Vibrant, Blue, Moon Yellow, Force Silver
and Black. It has Four stroke engine and one cylinder. It gives best
possible seating position for the rider and the pillion. The pillion seat has
little bit longer than rider.
The top speed of the bike has 125kph. The Karizma's mileage figures
depend on how it is ridden. Under city riding conditions, the bike
returned 30kpl and on the highway conditions, the bike returned an
impressive 45kpl at a speed of 70kph. Overall it is a great bike with
superb refinement, comfort and great handling.

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 PRICE
Pricing is one of the most important elements of the marketing mix
.Pricing is a critical element of following by most companies marketing
mix, as it determines the revenue which it will generate. While setting
price many factors are considered as it is difficult part of the marketing
mix. Prices can be varied with the place. Pricing is difficult and must
reflect supply and demand relationship
The Hero Karizma ZMR price is reasonable in India. The Bike surely
appeals to all youngsters as a personal choice. It is a highly capable and
stylish bike but high price puts it out of reach for many.
The Hero Karizma ZMR use product line pricing. It means they use
different price for same product range. A Hero company offering different
Bikes with different features at different prices. The greater the features
and the benefit obtained the greater the consumer will pay. This form of
price discrimination assists the company in maximizing turnover and
profits.
The Hero Karizma ZMRcharges different prices in different states
according to different colors. It charges highest price in Mumbai that is
83,638/- and lowest price from Delhi that is 75,707/- Indian Rupee.
 PROMOTION
Promotion is also called sales promotion or marketing promotions.
Promotion is used by companies to communicate the be nefits of their
products to their target markets. Promotional tools include advertising,
personal selling, public relations, sales promotion, sponsorship and
increasingly direct marketing methods.
The Hero company uses so many tools for the promotion of their brands.
They raise awareness in customers throw advertising. They use
television, radio, newspaper, posters, and internet as a medium for

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advertising. People easily understand the features and benefits of the
product from these modes of advertisement. They accept the brand
identity and ready to buy the product.
The Hero Karizma ZMR focused on product incentive promotion tactics.
For this they offer free trials or sample packages, coupons, prizes, and
more.
It use Business to business promotion strategy, such as trade shows,
conventions, sponsorships, contests, give-aways such as pens, notepads,
hats, etc (all imprinted with the company's identity on it).
It also use Print communications for promote the brand, such as
brochures, catalogues, flyers, single sheet promotions, etc
 PLACE
Place is also known as channel, distribution, or intermediary. It is the
mechanism through which goods and/or services are moved from the
manufacturer/ service pro vider to the user or consumer. The
organisation must distribute the product to the user at the right place at
the right time. Efficient and effective distribution is important if the
organisation is to meet its overall marketing objectives
The Hero company use intermediaries such as as wholesalers, agents,
retailers, the Internet, and direct marketing for sell their products. The
Hero provides their bikes indirectly to its target customers. The
advantage of indirect distribution is that it reduces the cost of
manufacturer.
We can see reach easily on the outlets of Hero company in every city and
buy their products. This company use Exclusive distribution for selling
their products. It means exclusive distribution Involves limiting
distribution to a single outlet. The Hero Karizma ZMR is highly priced,
and requires the intermediary to place much detail in its sell.

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2. 4p’s For Pleasure

 PRODUCT
The Hero Pleasure is a pretty basic scooter that features a minimalist
design language, but it has all it needs to be able to deal great with the
city traffic.
At its heart sits an efficient 102cc, air-cooled, 4-stroke single cylinder
OHC engine which delivers 5.03 KW at 7000 RPM and 7.85 Nm at 5000
RPM. The unit is fueled by a relatively small 5 liter fuel tank and is mated
to an automatic transmission.
As far as ergonomics are concerned, the Hero Pleasure comes with a large
under-seat box, a wide seat, an inner rack, a luggage hook and roomy
footboards.
The Hero Pleasure is equipped with a pair of tiny 10 inch wheels which
are paired with 3.50 x 10 – 4 PR / 51 J front and 3.50 x 10 – 4 PR / 51 J
rear tires.
The scooter is offered with a warranty period of 5 years or 50000 kms
from the date of purchase, whichever is earlier.
 PRICE
The Hero Pleasure charges different prices in different states according
to different colors. It charges highest price in Mumbai that is 45,755/-
and lowest price from Delhi that is 51,839/- Indian Rupee.
 PLACE
The Hero company use intermediaries such as as wholesalers, agents,
retailers, the Internet, and direct marketing for sell their products. The
Hero provides their bikes indirectly to its target customers. The

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advantage of indirect distribution is that it reduces the cost of
manufacturer.
We can see reach easily on the outlets of Hero company in every city and
buy their products. This company use Exclusive distribution for selling
their products. It means exclusive distribution Involves limiting
distribution to a single outlet. The Hero Pleasure is highly priced, and
requires the intermediary to place much detail in its sell.
 PROMOTION
Promotion is also called sales promotion or marketing promotions.
Promotion is used by companies to communicate the benefits of their
products to their target markets. Promotional tools include advertising,
personal selling, public relations, sales promotion, sponsorship and
increasingly direct marketing methods.
The Hero company uses so many tools for the promotion of their brands.
They raise awareness in customers throw advertising. They use
television, radio, newspaper, posters, and internet as a med ium for
advertising. People easily understand the features and benefits of the
product from these modes of advertisement. They accept the brand
identity and ready to buy the product.
The Hero Pleasure focused on product incentive promotion tactics. For
this they offer free trials or sample packages, coupons, prizes, and more.
It use Business to business promotion strategy, such as trade shows,
conventions, sponsorships, contests, give-aways such as pens, notepads,
hats, etc (all imprinted with the company's identity on it).
It also use Print communications for promote the brand, such as
brochures, catalogues, flyers, single sheet promotions, etc

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SEGMENTATION , TARGET MARKET , POSITIONING
OF HERO KARIZMA ZMR

 SEGMENTATION
Demographic Segmentation
• Age-17-28
• Gender- Male,
• Occupation
• Youngsters
Psychographic Segmentation
• Upper class
Behavioral Segmentation
• Benefits
• loyal to Brand
• Experiencers
• Believers

 TARGET MARKET

• Age: 20-30
• Gender: Males
• Density: Urban
• Customer Class: Business class

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• Those who love:
• Adventures,
• Excitement ,
• Thrill,
• Glamour.

• Benefits:
• Comfort,
• power,
• quality,
• performance,
• sports,
• Stylish.
• Masculine, and
• Best machine.

 POSITIONING

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PUNCHLINE - Above all.
TAGLINE – jet set go,
Always game,
SLOGAN – Desh ki dhadkan
MESSAGE – The advertisement gives the message that if you are
an adventure, thrill, loving person than you should definitely drive
this bike, because it is made for those people only.
IMPACT – Youngsters gets attracted because of the feelings of
adventure, thrill, sports, glamour and style.
U.S.P. - PGM-FI (Programmable Fuel Injection)

SEGMENTATION , TARGET MARKET , POSITIONING
OF HERO PLEASURE

 SEGMENTATION
Young girls who are chirpy and hep.
 TARGET
College and school going girls between the age group of 16-25.
 POSITIONING
Girls who want to enjoy every moment in life and want to live free.

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DIRECT AND INDIRECT COMPITITORS OF KARIZMA
ZMR

1. Honda

 Unicorn
 Target Segment: Age group 18-45
College going students or young and
middle aged consumer
 Product Strategy: Stable performance with better handling
 Pricing Strategy: Going rate pricing
 Promotion Strategy: Moderate Spending
 Positioning Strategy: Hassel-free bike for daily usage

2. Yamaha

 FZ-S, Fazer & R-15
 Target Segment: Age group 18-30
College going students or young
professionals
 Product Strategy: Technologically advanced
Scaled down version of their
internationally successful bikes
 Pricing Strategy: Premium pricing
 Promotion Strategy: High Spending
 Positioning Strategy: Youth-centric and style with technology

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3. TVS

 Apache-RTR
 Target Segment: Age group 18-35
College going students or young
professionals
 Product Strategy: Replicating every successful feature
of bikes available in segment
 Pricing Strategy: Going rate pricing
 Promotion Strategy: Moderate Spending
 Positioning Strategy: Youth-centric and high acceleration
Bike


DIRECT AND INDIRECT COMPITITORS OF HERO
PLEASURE

1. HONDA ACTIVA

 TARGET SEGMENT FOR MEN AND FAMILY COMMUTING
 SUPERIOR BRAND EQUITY OF HONDA ENGINE

2. TVS SCOOTY

 TARGET SEGMENT LIGHTWEIGHT WITH DIFFERENT COLOURS
FOR YOUNG WOMEN
 EASY AVAILABILITY OF SPARE PARTS

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DETAIL OF PROMOTIONAL TOOLS AND TECHNIQUES WHICH
ARE USED BRAND AMBASSADORS, MEDIA, ADVERTISEMENT,
SALESPROMOTION,PERSONALSELLING,DIRECTMARKETING,P
UB LICITY,PUBLIC RELATION OF HERO PLEASURE &
KARIZMA ZMR

1. Advertising

 Discarded product categorization on the basis of engine size.

 Product differentiation was the key.

 Avoided customer confusion of products.

 Karizma ZMR (premium segment) comes with the punch line,
“Always game”.

 Pleasure comes with punch line, “Girls who want to enjoy every
moment in life and want to live free”.

2. Brand ambassador:

 A brand ambassador is a celebrity (or an attractive or interesting
person ) used to helpadvertise a product or services. Alia Bhatt
becomes brand ambassador for Hero Motocorp

 Its Alia Bhatt who is new brand ambassador for the new Hero
Pleasure scooter. have a look at Alia Bhatt in Ad Hero Pleasure –
“Why should boys have all the fun”. Now days this scooter
advertisement hitting on television where Alia actually having fun
with scooter and enjoying nature Scooter is originally made for

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girls only and the new Hero Motocorp’s advertising also reveals the
same with Alia. Hero pleasure scooter is sticking to “why should
boys have all the fun” theme and through the latest ad, the
company shows the various features of the Pleasure scooter with
Alia Bhatt.


 For Karizma ZMR Various celebrity endorsements are used as their
positioning technique. Saurav Ganguly, when he was captain of
Indian Cricket team was their brand ambassador along with
Hritik Roshan. Both these personalities are unique in their fields.
Saurav Ganguly.

 was the face of Indian cricket. People worshiped him. So, through
Saurav Gaunguly, Hero potrayed itself as the heart beat of the
country. Iconic figure Hritik Roshan is known for his youth and
physique. So through him Hero tried to lure the youth.

3. Types of Advertisements

Print advertisements:
4.

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4. Personal selling

• Wide price range.

• Each product with multiple optional features.

• Experience speaks.

• First six service free

• Once in a year free check up for hero Honda bikes from authorized
company service station.

• Good resale value.

• Various schemes for government and military employees.

5. Sales Promotion

• Large product portfolio starting from 37k to 95k.

• Consistent launch of variants in the same models.

• Wide range of colors available in each category.

• Vast network of more than 2100 committed Dealers and Service outlets
spread across the country Festive offers- Rs 1000 discount with free
accidental insurance.

6. Pleasure promotional features

• 6 free services

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• 2 years warranty

• 9 shades of color

Dual tone

• Auto start

7. Direct Selling

competition heating up, would we see discounts coming Helpful staff

2100 authorized dealers.

Concentrated on brand rather than offering discounts Hero hasn't been
offering discounts since two years. Now with the back?

For us competition never cooled down. There have been launches by our
competitors, some successful, some not. I don't see competition dying
down, and we stay true to our strategy -- no discounting of products. A
consumer's primary consideration is the brand, which is the biggest
differentiator. They will not pay attention to smaller considerations like
Rs 3,000 off or a better interest rate etc.

According to MoU, PNB will offer motorcycle financing for all Hero bikes
at 11 per cent for a period of 1 year and 11.5 per cent for a period of five
year. PNB will finance up to 90 per cent of the on-road price of Hero
bikes.

Hero Honda Motors Ltd has signed a memorandum of understanding
(MoU) with Punjab National Bank (PNB) to offer consume r financing
option for Hero Honda motorcycles for a period of up to five years.

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DISTRIBUTION CHANNEL OF HERO PLEASURE &
KARIZMA ZMR



Factory
Depot
Carry &
Forward Agent
Dealer
Dealers Branch
Customer
ASC(Authorised
Service Center)
Customer
RSO(Rural Sales
outlet)
Customer
Multi/sub
Dealer
Customer

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REPORT ON HERO MOTOCORP

Many continue to be surprised at the ability of India 's 2-wheeler segment
to buck the present recessionary trend in the economy. What, they ask
themselves, accounts for such resilience: competitive pricing? Quality ?
Technology ? Or, is it ready availability?
What makes the 2 -wheeler segment so impervious to demand
fluctuations? A 2-wheeler is the most necessary consumer durable goods
owned by lower Middle, and middle class, households.
There is multiple ownership of this product in such households. Firstly,
there is an income effect that influences 2-wheeler demand. Per Capita
GDP growth of 3.7 per cent per annum has been pushing households up
into higher income brackets. The push effect is more in lower and
middle- income groups - hence the increased demand. It also links up
with the higher contributions of the service sector to GDP; the income
impact of that has been greater on lower income households. A second
major reason is the inadequate public transport. The percentage of
people who use public transport has fallen from 85 per cent to 75. Entry-
level transport options like two- and three-wheelers have mostly filled
this gap. They have also become a sort of necessity and thus do not show
heavy fluctuations in demand.
Increased demand for two -wheelers from households has also led
financial institutions to increase credit in a sustained way in the last
three or four years. That too has imparted stability to this item,
compared to others. A good proportion of sales owes to replacement
demand.

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Bibliography

https://www.scribd.com/doc/49041758/HERO -HONDA-PLEASURE
http://business.mapsofindia.com/automobile/two-wheelers-
manufacturers/hero-motocorp-india.html
http://www.heromotocorp.com/en -in/
http://www.heromotocorp.com/en -in/the-bike/karizma-zmr-44.html
http://www.heromotocorp.com/en -in/the-bike/pleasure-53.html
http://www.marketing91.com/mar keting-mix-hero-motocorp-4-ps-hero-
motocorp/
https://www.scribd.com/doc/49041758/HERO -HONDA-PLEASURE
https://www.slideshare.net/search/slideshow?searchfrom=header&q=hero+ho
nda
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