INTRODUCTION

Hero Honda Motors Limited, based in Delhi, India, is the world's third largest
manufacturer of motorcycles after Honda and Yamaha. Hero Honda is a joint
venture that began in 1984 between the Hero Group of India and Honda of Japan.
It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since
2001, when it produced 1.3 million motorbikes in a single year. During the fiscal
year 2008-09, the company has sold 3.28 million bikes and the net profit of the
company stood at Rs.1281.7 crore, up 32% from the previous fiscal year.
Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in
Dharuhera and Gurgaon, both in India. Third plant at Haridwar, Uttaranchal has
also started production by April, 2008. It will have production facilities such as
Lean Manufacturing concept, more flexible lines & stream line material flow,
within & proximity (planning to set vendors in nearby locations constituting
HHML Park) to achieve just-in-time manufacturing. It specializes in dual use
motorcycles that are low powered but very fuel efficient.
COMPANY PROFILE
“Hero” is the brand name used by the Munjal brothers in the year 1956 with the
flagship company Hero Cycles. It is a joint venture between India's Hero Group
and Honda Motor Company; they are related to Jagdish Lal Munjal.
During the 1980s, Hero Honda 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 Honda sold millions of bikes
purely on the commitment of increased mileage.
Hero Honda has consistently grown at double digits since inception; and today,
every second motorcycle sold in the country is a Hero Honda. Every 30 seconds,
someone in India buys Hero Honda's top-selling motorcycle: Splendor.
Hero Honda bikes currently roll out from two globally benchmarked
manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants
together are capable of churning out 3.9 million bikes per year. A third state-of-the-
art manufacturing facility at Haridwar in Uttranchal will soon be commissioned to
cope with sustained customer demand.
Hero Honda's extensive sales and service network now spans over 3,000 customer
touch points. These comprise a mix of dealerships, service and spare points, spare
parts stockists and authorized representatives of dealers across different areas.
Hero Honda values its relationship with customers. Its unique CRM initiative,
Hero Honda Passport Program, one of the largest programs of this kind in the
world, has over 3 million members on its roster. The program has not only helped
Hero Honda understand its customers and deliver value at different price points,
but has also created a loyal community of brand ambassadors.
TWO WHEELERS IN INDIA

1 Hero Honda : Achiever - CBZ - Hunk - Karizma - Passion – Splendor

.

2 Bajaj : Avenger - Boxer - CT 100 - Discover - Eliminator -

. Legend - Pulsar - Pulsar 220 - Platina - Wind - XCD
Kristal - Chetak - Saffire - Sunny - Wave

3 TVS : Victor - Flame - Apache

.

4 Honda : Activa - Aviator - Dio - Unicorn

.

5 Yamaha : Crux - Gladiator - Libero - RX-135 - RX 100 - R15 ·

.
FZ16 - FZ-S

6 Others : Rajdoot 350 - Royal Enfield Bullet

.
HERO HONDA SPLENDOR
Hero Honda Splendor has come up with all possible features of any standard bikes. Apart
from these features, this bike also has many advanced and customer friendly features.
This bike is equipped with every safety and comfort features for the convenience of the
biker.

There are found models in Hero Honda Splendor:

• Super Splendor
• Splendor +
• Splendor NXG
Super Splendor

This Bike comes with 125 cc new generation quantum core engine with an output of 9
bhp (6.7 kw). It’s 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.

It is found in different colors:

• Frost Blue
• Cloud Silver
• Mono Tone Black
• Dual Tone Black
• Blazing Red

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.

It is found in different colors:

• Candy Tahitian Blue
• Hi Performance Red
• Blue Blaze Metallic
• Cloud Silver Metallic
• Chilli Green
• Hi Granite Blue
• Tornado Grey
• Black with Blue Silver Stripe
• Black Calliper Yellow
• Black Old Stripe
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.

It features:

Splendor NXG is available in a range of five attractive colors and seven stripe
combinations.
• New front fairing and a new visor
• New design fuel tank with knee recesses on either side and features a chrome fuel
tank lid.
• New body panels and sleek body graphics.
• New instrument panel - trip meter housed in speedometer, fuel gauge.
• Stylish tail lamp and die - cast alloy grab rail.
 • 160mm of ground clearance.
Colors
• Candy blazing red
• Force Silver
• Vibrant blue
• Classy maroon
• Black
WHY COMPANY CHOOSE RURAL MARKET
Hero Honda has worked out a major expansion strategy for the rural markets and is
planning to strengthen retail financing to support the initiative that could lead to
setting up of its own finance arm. Pawan munjal, MD of Hero Honda, told TOI
that rural market would be a special focus area for the company as it is looking at
new growth areas to maintain sales momentum in a shrinking market. "We have
created a special ‘rural vertical' to push growth and this would spearhead our
expansion in the rural market,' Munjal said.
India's largest two wheeler company Hero Honda Motors is spreading its wings to
capture the commuting bikers' imagination in rural India, after witnessing flat sales
growth in 2007-08. The two wheeler market leader plans to cover 100,000 of the
600,000 villages in the country by the end of this financial year under a campaign
named Har Gaon, Har Aangan (every village, every household).
Anil Dua, Senior Vice-President (Sales & Marketing), told DNA Money that "We
realized that, while two-wheeler penetration in urban areas is 25 per cent, it is
only 10 per cent in rural areas and so the latter segment needs to be tapped more
extensively. Under the rural vertical, we started collecting a lot of data at rural
touch points…….many of our dealers are now meeting sarpanches, headmasters,
aanganwadi workers and other opinion makers to understand the rural consumer
better". The rural initiative generated sales of 16,000 additional bikes in a single
month.
PROMOTIONAL STRATEGIES

1. BRAND AMBASSADORS OF HERO HONDA:

Hrithik, Saurav Ganguly, brand ambassadors of Hero-Honda

Hero Honda, a leading manufacturer of motorcycles, has roped in film actor
Hrithik Roshan and captain of Indian Cricket team Saurav Ganguly as its brand
ambassadors for three years till 2003.
The latest commercial featuring Hrithik Roshan, Priyanka Chopra and six
cricketers, is perhaps the longest ad, at three minutes.
They would endorse the company products, attend corporate and brand events and
help promote its “We care” campaign comprising safely riding, environment and
friendliness.
Hrihik and Gauguly said they were glad to be associated with Hero Honda. Honda
has embarked upon an ambitious project to achieve sale of one million bikes this
year with a market share of 47 per cent. The turnover would be in excess of Rs.
3000 crore.
In October alone, 11, 22,000 motorcycles have been sold. Compared to 66,063
units in the corresponding period. Last year, the increase in sales is a phenomenal
69 per cent. Cumulative sales jumped up by 41.58 per cent to 5.72 lacks units
during April-October as against 4.04 lacks units in the same period last year.
PROMOTION POLICY:
➢ Company gives advertisement in different media vehicles time to time. Like
in TV. Magazines, newspaper, etc.
➢ Hero Honda also organizes free service camps every year.
➢ Hero Honda also takes art in trade fair.
➢ Hero Honda with the help of ICICI Bank provides loan to the customers &
also provide easy monthly installment scheme to customers.
➢ Hero Honda gives huge commission to their dealers.
2. ADVERTISEMENT:
Hero Honda - Sa Re Ga Ma Pa Challenge 2009 - Watch Hindi Zee TV
Program
Hero Honda - Sa Re Ga Ma Pa Challenge 2009 is the 3rd installment of the Sa Re
Ga Ma Pa Challenge series which premiered on July 4, 2008 on Zee TV
The show is hosted by Aditya Narayan, who also hosted the previous competition
Sa Re Ga Ma Pa Challenge 2007. This show features three new mentors, Aadesh
Shrivastava, Shankar Mahadevan and Pritam, who join Himesh Reshammiya.The
concept is similar to the previous show Sa Re Ga Ma Pa Challenge 2007 where the
contest invited singers from all around the world. Auditions were held outside
India & contestants were judged by various music artistes from the Indian Music
industry. Only the top contestants from the auditions were selected to participate in
the show.
Hero Honda is Rock Solid on its Top Position: An AdEx India
Analysis
The boom in the Automobile industry has also benefited TV Channels in terms of
advertising revenues from the Cars/Jeeps as well as the Two Wheelers category.
Last time we delved into the advertisers/brands within the cars/jeeps category.
First, let's see which advertisers topped TV advertising in 2002. Hero Honda
Motors Ltd was the top advertiser then, accounting for a little over 25% (one
fourth) of the share. TVS Motor Company came a close 2nd with its share just
above the 25% mark and Bajaj Auto was ranked third with shares close to 17%.
3. PLAN HAR GAON HAR AANGAN:
Hero Honda was quick to realize that there was a huge opportunity waiting to be
tapped. A rural vertical was set up under Dua sometime in 2007. Five hundred
sales representatives were taken on board for the mission Har Gaon, Har Aangan
(every village, every courtyard.)

These representatives have been given work tasks and not sale targets - they need
to meet potential customers and opinion leaders in villages. So far, Hero Honda has
mounted three two-month long "waves" through these men. Each wave has
resulted in additional sale of 15,000-16,000 motorcycles.

Farmers, Hero Honda knows, have money in their pockets twice a year when they
harvest their crop - once around May and June and then around October and
November. These "waves" are mounted just before the harvest so that Hero Honda
is on their radar screen when they have cash in hand.

It also realised that one reason customers in these markets choose Hero Honda
over others is the easy availability of spares and authorised mechanics. As a result,
in the resale market, it commands a premium over rivals. This makes Hero Honda
a preferred brand, claims Munjal.

Thus, the company decided to ramp up rapidly its touch points with customers -
showrooms, service centres and so on. From 2,000 in 2006, the number has risen to
3,500 now. Munjal says the plan is to add at least 500 every year. Most of these
will be service points.

"Customers can travel over long distances to buy a motorcycle but not for service.
A customer can take his motorcycle for servicing four or five times a year," adds
Dua. Many of these touch points can start as a service centre and over time become
a sale centre.
4. CORPORATE SOCIAL RESPONSIBILITY:
STAKEHOLDER TIES AT THE GRASSROOTS
Hero Honda Motors takes considerable pride in its stakeholder relationships,
especially ones developed at the grassroots. The Company believes it has managed
to bring an economically and socially backward region in Dharuhera, Haryana,
into the national economic mainstream.
An Integrated Rural Development Centre has been set up on 40 acres of land
along the Delhi-Jaipur Highway. The Centre-complete with wide approach
roads, clean water, and education facilities for both adults and children-now
nurtures a vibrant, educated and healthy community.
The Foundation has adopted various villages located within vicinity of the Hero
Honda factory at Dharuhera for integrated rural development. This includes:
• Installation of deep bore hand pumps to provide clean drinking water.
• Constructing metalled roads and connecting these villages to the National
Highway (NH -8).
• Renovating primary school buildings and providing hygienic water and
toilet facilities.
• Ensuring 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.

RAMAN MUNJAL VIDYA MANDIR

 The 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, CBSE affiliated co-
educational school with over 1200
students and 61 teachers. The 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

Multi-specialty hospital equipped with

the latest diagnostic and surgical
technology. The Raman Munjal
Memorial Hospital provides
healthcare to the rural pXopulation in
and around Dharuhera, and also caters
to accident and trauma victims driving
along the Delhi-Jaipur highway.

Raman Munjal Sports Complex

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and
hockey and football grounds are used by the local villagers. In the near future,
sports academies are planned for volley ball and basket ball, in collaboration with
National Sports Authority of India.
Vocational Training Centre
In order to help local rural people, especially women, Hero Honda has set up
a Vocational Training Centre. So far 26 batches comprising of nearly 625
women have been trained in tailoring, embroidery and knitting. The 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
This Scheme was launched on 21st September, 1999, covering the nearby
villages of Malpura, Kapriwas and Sidhrawali. The 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.
4- A’s OF HERO HONDA
1.Availability
a) Hero Honda's 2 plants are in Dharuhera and Gurgaon, both in India.
Third plant at Haridwar, Uttaranchal has also started production by
April, 2008.
b) Hero Honda's extensive sales and service network have spans over
3,000 customers touch points.
c) The number of touch points (dealerships plus sales and service
outlets) is already 3,500 from 2002 and another 500 would be added
every year.

2. Affordability
a) Hero Honda offer cheapest motorcycles in India cost between Rs 30,000
and Rs 35,000.
b) Hero Honda with the help of ICICI Bank provides loan to the customers
& also provide easy monthly installment scheme to customers.

3.Awareness
a) Hero Honda Motors Ltd was the top advertiser then, accounting for a
little over 25% (one fourth) of the share.
b) Five hundred sales representatives were taken on board for the
mission Har Gaon, Har Aangan (every village, every courtyard.)
c) Company gives advertisement in different media vehicles time to
time. Like in TV. Magazines, newspaper, etc.
d) Hero Honda also organizes free service camps every year.
e) Hero Honda also takes art in trade fair.

4. Acceptability
a) Hero Honda has accepted by people because its strong brand image and
product quality.
b) Hero Honda is considered to be most fuel-efficient bike on Indian roads.
c) Hero Honda bikes are purchased more by daily users who needs more
average of bikes as well as look.
 d) People prefer Hero Honda because of its product varieties & stylish
design etc.

MARKET SHARE
Hero Honda Motors Ltd on 14- July- 2009 reported a forecast-beating 7.1 per cent
rise in net profit. Helped by falling commodity prices, a cut in excise duties and
sales in rural areas.
Hero Honda's closest rival, Bajaj Auto Ltd, second week of July, 2009 reported a
23 per cent drop in net profit for its fiscal third quarter as a lack of financing and
high interest rates crimped demand.
Hero Honda was not as affected, as 60 per cent of its revenues come from rural
markets, where purchase are less reliant on loan financing than in urban areas and
where its 100 cc bikes are popular, Munjal said.

Compan Apr-Jun Apr-Jun Growt Marke Rural Urban

y 2008-09 2009-10 h t Marke Marke
%) Share t share t share
(%)
Hero 877,089 1,094,99 24.84 51.26 10% 25%
Honda 6
Bajaj 391,100 331,731 -15.18 15.53
Auto
TVS 292,530 315,785 7.94 14.78
Motors
Honda 226,068 284,890 26.01 13.33
Total 1,865,76 2,135,86 14.48 -
Market 7 9
SALES IN RURAL MARKET
Hero Honda is a joint venture between Honda Corporation, Japan and the Mumjal
family with both parties owning 26% each. Hero Honda has made its strong
presence in the rural India and so it is able to withstand against the market
competition. Selling of deluxe models of the bikes and a decline in raw – material
prices has brought an improvement in the EBITDA margin level, in the financial
year 2008. The dealership network of Hero Honda is strong and it also has a good
penetration effect in the rural areas. The company has manufactured 46,000 units
in Haridwar plant and its daily production has reached between 1000 to 1200
units on a daily basis.
Recently, Hero Honda reported an impressive July sales at 281317. The PAT
growth was driven by low tax provision at 22.2% versus estimated 29.5%. The
EBITDA is at Rs. 3.4B (verses estimation of Rs. 4.2B), which is due to lower
realization growth and higher other expenditure. There are few banks which are
likely to reduce auto loan interest rate at 1 to 2%. In the coming month, Hero
Honda is expected to do better sales volumes on account of better monsoon and
growth in the rural area.
CONSUMER SEGMENT

Target Transportation need Translates to Product choice

segment Product
features
Men/ To carry load -carrying family, Strong, sturdy Motorcycle/
Family delivering goods etc and powerful Honda Activa

Women To move around with ease and Great mileage, ScootyPep /

comfort, not to depend on others easy to maneuver Hero Honda
for commuting need –scooter is and safe to ride pleasure
an agent of liberation

WHY PEOPLE PREFER HERO HONDA

REASON OF CUSTOMERS PREFRENCE
BAJAJ HERO HONDA
COMPETITORS
BAJAJ AUTO
Two-wheeler major Bajaj Auto is set to fight back falling sales with a renewed focus on
bigger engine bikes backed by six new launches in 2009.

The company will kick off with a new product, which will directly target rival Hero
Honda’s best-selling Splendor/Passion range, the 135 cc XCD priced at Rs 45,000 and
due for debut on January 21.

Followed by this, the company also plans two more new rollouts in value-segment (125-
135 cc engine size) in April and July and three premium models (150 cc and above) later
this year.

Speaking to ET, Bajaj Auto managing director Rajiv Bajaj said: “We want to pursue our
strategy of being a motorcycle specialist and our focus is on motorcycles in the 125 cc
and above engine size, which has 35% share in the domestic two-wheeler market.
Currently, we own 50% of the market for 125 cc and above engine size. We want to grow
both our product range as well as our marketshare in that segment. We do it through our
DTSi engine technology, and for us, that’s the core differentiator.”

Apart from a head-to-head pricing with its rival brand, the XCD 135 cc DTSi will come
with a number of features than the premium stable mate Pulsar. That includes a 5-speed
gearbox, a 10.5 hp output and 65/70 km per litre mileage. It will sport a digital cockpit,
nitrox rear suspension, low-friction front suspension, twin pilot headlamps and LED tail
lamps.

The bike will roll out from Bajaj’s Waluj plant and will also be produced at Pantnagar
from February.
Bajaj Auto has been badly affected by the defaults that dried up financing in the two-
wheeler market. It’s motorcycle sales declined 8% to 1,534,149 units during April-
December from 1,660,182 units for the same period last year. In December alone, it’s
sales skid 33%.

“In the entry-level segment, we witness a major sales growth with our Platina model,”
said Mr Bajaj. “Due to defaults, finance dried up and our numbers fell to about 40,000
units per month from 75,000 units,” he added.
In 2006 and 2007, the entry-level segment, where cheap and cheerful 100 cc motorcycles
rule, suddenly expanded when financiers got aggressive and offered bikes at Rs 2,000
down payment. “It was bad business and it’s over and no one will go back to that
structure,” said Mr Bajaj. For Bajaj, that leaves the problem of a shortfall of 30,000-
40,000 motorcycles a month.

Mr Bajaj is using Bajaj Auto Finance (BAF), the in-house financing company, to get over
the entry-level sales spike. “However, NBFCs typically have higher cost of finance. So
we’re countering that with 1-2 years of extended free warranty cover,” Mr Bajaj said.
Already BAF has financed 25,000 bikes in December despite its 3% higher interest rate.
“When compared to other banks, that is a good performance,” said Mr Bajaj.
Two years ago, Bajaj Auto had announced that it would not look at the entry-level
segment because there’s no money there. “We are not abandoning 100 cc bikes,” said Mr
Bajaj. “All we are saying is that we would want to address the mid/value-segment that is
now ruled by our competitor’s Splendor/Passion range, with 125 cc and above products.”

COMPARISON BETWEEN HERO HONDA AND BAJAJ AUTO

There was a time when Bajaj Auto and Hero Honda were neck-and-neck race in the two-
wheeler market. In April 2009, Hero Honda’s sales were up 29.5 per cent (as compared to
April 2008) to 370,575 two-wheelers while Bajaj Auto’s sales slid 24 per cent. The gap
between the two companies increased to over 200,000 in the said month.
However, not so long ago, Bajaj Auto was giving sleepless nights to Hero Honda. In
September 2006, it had come close to displacing Hero Honda from the top slot. Hero
Honda’s rule as the leader of the Indian motorcycle market, second only to China in size,
it looked would soon be history, writes Bhupesh Bhandari writes in Business Standard’s
The Strategist....
Left with no choice, it took a decision that changed its face forever. “We said we will
focus on market share rather than profits,” recollects Hero Honda Managing Director and
CEO Pawan Munjal.
Result? From a producer of fuel-efficient motorcycles, Hero Honda has morphed into a
marketing-led organisation. Advertising campaigns, product refreshes and brand health
— walk blindfolded into the Hero Honda office in a crowded south Delhi market and the
language spoken there could lead you to mistake it for an FMCG company.
“Every two-wheeler company is focused at the product-end of the story. But all products
are similar,” says brand consultant Harish Bijoor. “Hero Honda is the first to go beyond
that. It shows in its domination of cricket, selection of youth and style icons, and
association with shows like MTV Roadies which improves involvement with the
hinterland.”
In those days, all motorcycles and their advertisements looked similar. The diagnosis was
that the company’s differentiation in terms of propositioning to customers was weak.
That was the first gap that needed to be plugged.
The second step involved discarding the earlier method of product categorization on the
basis of engine size. This took the company to unchartered waters of consumer profiling
— what is his lifestyle and attitude, what is it that he holds dear in life and so on. As a
result, Hero Honda now comes out with new motorcycles, variants and refreshes keeping
the customer profile of each segment in mind.
This shows in the commercials. Thus, the advertisement for the Karizma (premium
segment) comes with the punch line, “Always game.” The ad for the premium segment
Hunk doesn’t talk of speed or power at all — the focus is on the looks even while
standing. The CBZ Extreme comes with the promise, “Thinking is such a waste of time.”
“Both the Hunk and CBZ Extreme are 150 cc bikes but talk to different customers,” says
Hero Honda Vice-president (sales and marketing) Anil Dua, who joined Hero Honda
around September 2006 from Hindustan Unilever. “We have created very sharp positions
for all our brands. You can’t substitute one model for another in any advertisement.”
This is important. Hero Honda has a large portfolio of products (13 motorcycles and one
scooter), so it has to create distinct position for each so as to avoid customer-confusion
and cannibalization of products.
WHY IT IS SUCCESSFUL BRAND
Hero Honda has managed to put in spectacular performance going from strength
despite increase in competition; the company's sales have witnessed an uptrend,
registering an average growth of 42% in the three years under review.
Hero Honda has managed to achieve this because its strong brand image and proven
product quality underpinned the performance growth in recent years. Apart from the
strong brand "splendor" the company's performance across the spectrum of the
motorcycle market helped it exploit the growing demand for 4-stroke motorcycle.
At the lower end the company has CD 100 SS at middle level splendor, passion and
Dawn the CBZ Extreme/ Karizma range is targeted at premium segment.
Some years back Hero Honda are getting stiff competition because of Bajaj, TVS
and Yamaha have a presence in 125cc bikes segments where Hero Honda has not any
presence in this segment. Now this gap is filling up by Hero Honda's new Splendor
NXG, Glamour. But still there is a gap between 150cc to 225cc segment which is
most preferable segment by youth today.
With newer and better models are coming up customer has better and bigger choices
to choose from.
It is the competition on various aspects such as price, design technology, after sales
services and even purchases offers, which provides to both buyer and seller.
Even many dealers are in view that today Hero Honda and Bajaj, thrives on
competition.
Right now it seems that the real war is between Hero Honda and Bajaj auto. But one
cannot discount the fact that there are other players, who are gaining strength day by
day.
There was a time when Bajaj ruled the Indian Two Wheeler Industry with their
scooters in the form of Chetak and the likes. They had a minor presence in the
motorcycle market with some models from the Kawasaki range. Hero Honda was a
minor player in that market with their 4-stroke bikes, which were totally dominated by
Yamaha with their RX-100.
Situation changed dramatically when the pollution norms meant, two wheelers had
to go 4-stroke and petrol started to get expensive. Hero Honda started emerging as
the dominating force with their extremely efficient engines. People started looking
towards motorcycles instead of scooters and the day arrived when Hero Honda
became the largest two-wheeler manufacturer in the world with Splendor breaking all
records.
Hero Honda kept playing their cards with modest decorative upgrades to their range
of bikes though competition forced them to launch newer models in the form of
Ambition, CBZ, and Karisma. However, the entry-level bikes in the form of Hero
Honda Splendor and Hero Honda Passion were not upgraded to face the competition
from Bajaj or TVS. The bike still retains extremely high confidence level from the
users and sells like hot cakes.
Entry of Hero’s partner in the Hero Honda in form of Honda changed all that. They
announced their entry with an extremely successful bike Unicorn which after months
of its launch still has waiting periods of many weeks. More interesting models are
come in the market regularly. They also are competing with Bajaj heads on with their
extremely popular models in the scooters market (Activa and Dio).
This has forced Hero Honda to think again… Honda can emerge as a dominating
force in the market with its extremely high quality standards and technical expertise.
And the results are coming in front of us. They have announced their arrival in the
scooters market for the first time with a model planned for launch. Moreover, they
have released a much-needed upgrade model of their best selling Splendor.
Super Splendor is a 125cc bike, which is being manufactured at the company state-of-
the-art plant in Gurgaon, Haryana. They have priced this model at a modest Rs
42,500. This should help Hero Honda retain their market share in the executive
segment considering the brand value of Splendor.
They are also considering setting up a third plant to increase their production capacity,
which already stands at an impressive figure of 2.4 lakh units.
WHY HERO HONDA IS A WINNER
 Building a wide product range across segments
 Differentiated brand building campaigns
 Focus on driving sales in rural India
 Launching new models
SWOT ANALYSES ON HERO HONDA
 CONCLUSION

1. Most of the Hero Honda Bikes are purchased by young generation 18 to 30

because they prefer stylish looks and rest of the models of Hero Honda are
purchased more by daily users who needs more average of bikes than looks.
2. Hero Honda is considered to be most fuel-efficient bike on Indian roads.
3. Service & Spare parts are available throughout India in local markets also.
4. While buying a motorcycle, economy is the main consideration in form of
maintenance cost, fuel efficiency.
5. Hero Honda started growing in rural market rapidly with its add campaign
and promotion strategies in rural market.