VS

Demographic Segmentation

MODEL ENTRY DELUXE PREMIUM

MAKE
BAJAJ KRISTAL(100) PLATINA(125) PULSAR(150)
CT(100) XCD(125) PULSAR(180)
PLATINA(100) DISCOVER(125) PULSAR(200)
CV(100) DISCOVER(135) AVENGER(200)
DISCOVER(100) PULSAR(220)

HERO HONDA CD100(100) GLAMOUR(125) ACHIEVER(150)

CD100ss(100) GLAMOUR F1(125) CBZ(150)
CD DAWN(100) SPLENDOR +(100) CBZ Xtreme(150)
CD deluxe(100) SPLENDOR NXG(125) HUNK(150)
CD deluxe-ss(100) Super SPLENDOR(125) KARIZMA(223)
SPLENDOR(100) PASSION +(100)
PASSION(100) AMBITION (133)
PASSION PRO(100) AMBITION (135)
Gender Based Segmentation
Pricing

PRICE ENTRY SEGMENT DELUXE SEGMENT PREMIUM

MAKE SEGMENT

HERO HONDA 34,000 - 45,000(8) 41,000 - 58,000(8) 60,000 - 75,000(5)

BAJAJ 32,000 - 40,000(5) 43,000 - 52,000(4) 60,000 - 87,000(5)

Targeting
Brand Positioning
Youth Centric Programmes

• Your Subtopics Go Here

BCG-MATRIX

Sl Market Market Relative Market Quadrant

No. SBU share of share of market growth in which
Hero largest share rate the SBU
Honda competitor lies
(SBU)

1 Motorcycles 53.8% 27.5% 1.95 19.89 % STAR

( Bajaj )

2 Scooters 12.8 % 55 % 0.23 12.36 % Question

(Honda) Mark
GE Matrix- Motorcycles
 Factors Underlying Market
Attractiveness

Factors Weight Rating Value = Reasons

(1 –5) (Weight *
Rating)
Annual market 0.25 4 1.0 The Annual market growth rate of Hero
Growth rate Honda motor cycles is 11%

Overall market size 0.25 4 1.0 The overall market size is 69,15,700
units for 2008-09.
Historical Profit 0.15 4 0.6
Margin
Market Rivalry 0.20 2 0.4 Highly competitive Market with Bajaj,
Yamaha, TVS, HMSI, Suzuki as the key
Players.
Demand Variability 0.15 4 0.6 Highly consistent demand. Very low
demand variability ranging between 3-
3.5 lakh units in a financial year.
Total 1.0 3.6
 Factors Underlying Market
Strength
Factors Weight Rating Value = Reasons
(1 –5) (Weight *
Rating)
Market share 0.15 4 0.60 The Market share of Her Honda is 59%

Brand Image 0.15 4 0.60 25 Years of market “Trust & reliability”

Pricing 0.25 4 1.00 Product Range – 34,800 to 75,700

Product quality 0.2 3 0.60 Assurance of Quality by giving 3 Years

Warranty and 6 Free services

Research & 0.25 2 0.50 Hero Honda’s R&D expenses accounts

Development for 2.7% of its net sales and 90% of it
goes towards paying Royalty and
Technology fees to its Technology
partner Honda.

Total 3.30
 Business Strength
Strong Medium Weak
5.00
High
Market Attractiveness

3.67
Medium

2.33
Low

5.00 3.67 2.33 1.00

GE Matrix- Scooteritte
 Factors Underlying Market
Attractiveness

Factors Weight Rating Value = Reasons

(1 –5) (Weight *
Rating)

Annual market 0.30 4 1.20 The overall Market Growth rate is 12%
Growth rate
Overall market size 0.30 3 0.90 The market size is 11,80,000 Units for
2008-09
Historical Profit 0.10 3 0.30
Margin
Market Rivalry 0.20 4 0.80 High competition from Honda having a
market share of 55%
Demand Variability 0.10 3 0.30 Very Low Demand variability with a sale
of Approx. 12000 units a month.
Total 1.0 3.50
 Factors Underlying Market
Strength
Factors Weight Rating Value = Reasons
(1 –5) (Weight *
Rating)

Market share 0.15 2 0.30 Pleasure has a market share 12.8%.

Brand Image 0.15 3 0.45 Hero Honda pleasure has gained
acceptance among the Women
commuters.
Pricing 0.25 3 0.75 The Price of pleasure is 36,400 as
compared to 41,800 of Honda Activa.
Product quality 0.20 3 0.60 Hero Honda’s prime focus is Quality
Assurance
Research & Development 0.25 1 0.25 Very Less Development in the product
range offered.
Total 1.0 2.35
 Your Topic Goes Here

Business Strength
Strong Medium Weak
5.00
High
Market Attractiveness

3.67
Medium

2.33
Low

5.00 3.67 2.33 1.00

Ansoff Matrix
 MARKET PENETRATION Targeting foreign markets
INDONESIA
• Pro-biking showrooms NIGERIA
• Promotional SRI LANKA
campaigns BANGLADESH
• Advertising through COLOMBIA
media MEXICO
• Bajaj Auto Finance

PRODUCT DEVELOPMENT DIVERSIFICATION

• Four-wheeler diversification
• Discover 100cc Bajaj has entered into a joint
• venture with Renault and
Bajaj 220cc Nissan & are planning to
• Kawasaki Ninja launch a car next year
• Bajaj Finance
• Gearless Scooter Bajaj Auto Finance earlier a part
launch of Bajaj Auto has de-merged
from it and is now a part of
Bajaj Auto is also planning Bajaj Finance. Bajaj Auto
to move into the gearless Finance Ltd offers attractive
loans for purchase of new
scooter segment. Bajaj vehicles.
 STRENGTHS WEAKNESSES
•Brand name •Because of the joint Venture between Hero and
SWOT Analysis
•Aggressive promotion and effective advertising
•Fuel efficient bikes
Honda, Hero Honda cannot sell its bikes in countries
where Honda has a presence (Nepal, Bangladesh and
•Low in cost as compared to other competitors (entry Colombia) without its consent
level bikes) •As a result the sales of Hero-Honda through exports
•Better technology accounts for only 3% of its total sales as compared to
•Country wide presence of quality service centers 23% for Bajaj in export
•Strong presence in rural market •Honda is its technology partner till 2014 and hence
•Strong distribution network Hero doesn’t have a well established R&D division as
•High resale value compared to TVS and Bajaj and the R&D division is
•After-sales service not close to the manufacturing facility
•Brand name of Hero itself has no influence in the
industry

THREATS OPPORTUNITIES
•Stiff competition from Bajaj DTS-Si engine series •Growth in the premium segment
•Sports bikes from Yamaha •Entry into the Scooterette segment
•Mopeds from Bajaj (Wave and Kristal) •Family moped
•FDI in automobiles is 100% •Global expansion
•Entry of global giants like Harley-Davidson in the •Large market for the high-performance segment which
Indian market is increasing with the ever-growing spending power of
the Indian middle-class
THANK YOU