You are on page 1of 8

PLACEMENT OF HERO MOTO CORP Hero Moto Corp Limited sells the motorcycle through a widely spread all

India networks of o v e r 4 5 0 o f d e a l e r s . T h e m o t o r c y c l e c a n b e s e r v i c e d a t t h e a u t h o r i z e d d e a l e r s o r S S P s (Spare and Service points).In the year 1996, Hero Moto Corp was the first company to introduce Indias first chain of automated services workshops. To expand the service network further to smaller towns, the company has appointed Service extensions. Hero Moto Corp genuine spare parts are available from the dealers, SSPs and the stockiest. The company provides good after sales service through its well-established dealer network. The company has a policy of three S, Single S for stockiest, Double S for services and three SSS for sales. The company is having about 460 of SSS, which deals in Sales, Service, and Stock, 260 of SS, which deals in Service and Stock and 12 of S, which exclusively deals in stocks. The Network As On 31st March 2002 Is As Under: Dealers (3s_-Sales, Service, Spares)-458, Ssps (2 S-Service And Spares)-256, Stockiest (Single SSpares)-12The company has developed a unique distribution network, which

has given it a distinctive competitive advantage. The whole idea behind establishing this vast distribution network isto reach the customer even in the remote areas. The company has segregated the areas as Urban, Rural, and semi rural and has appointed dealers in many of these areas, after seeing the potential. The companys major thrust is the easy availability of all the models in every part of the country. The companys bikes are sold through the dealers and they are required to provide proper infrastructure, Workshops, Facilities, and trained Personals. The dealers are given targets and they are required to sell sufficient number of vehicles to earn a return on investments. Regional offices are in constant touch with these dealers. P r e s e n t l y t h e c o m p a n y i s h a v i n g 8 r e g i o n a l o f f i c e s i n t h e c o u n t r y . T h e r e g i o n a l o f f i c e s constantly assist these offices as a kind of linkage between the company and the dealer and the dealers. The sales and the marketing personals at the regional offices are trained and encourage maintaining a cordial relationship with various dealers on the basis of trust and understanding. The companys service engineer and the other sales staff supervise all the facilities at the dealer and the service outlet from planning the layout to the errection of the s p e c i a l l y d e s i g n e d b e n c h e s a n d t h e t o o l s . I n f a c t a l l t h e p o s s i b l e e f f o r t s a r e m a d e b y t h e company to make the dealers to

become the part of the Hero family and its culture. The company has appointed fleet of more than 400 trucks from around 45 transporters to assist them in the delivery of vehicle. From the factory and within the factory premises, the company has a good fleet of trucks and trailers. The company to deliver the vehicle to the dealers showroom in the factory fresh condition uses these trucks and trailers. The cargos are loaded in the trucks and the trailers and they are delivered at the s t o c k y a r d s o f t h e dealers in whichever part of the country they may be located. So the company in this way delivers the motorbikes in the fresh factory conditions. By the time the bike reaches our d e a l e r s t h e y m i g h t h a v e d o n e h a r d l y a c o u p l e o f k i l o m e t e r s . T h e c o m p a n y b e l i e v e s t h e marketing efforts should go beyond ensuring product availability. The focus is therefore on a vast distribution network. In order to ensure the customers a b e t t e r q u a l i t y s e r v i c e a t t h e various in which stations, all the company mounts an staff effe ctive and the t r a i n i n g program other senior staff

the mechanic,

supervisory

personnel participate. T h e c o m p a n y i s a l s o p l a n n i n g t o s e t u p s o m e o f t h e fully equipped express authorized h i g h w a y . I n t h e s e h i g h w a y s , o n e w o u l d s e e a H e r o M o t o C o r p d e a l e r e v e r y 1 5 - 2 5 KMS.This concept is thought by the company with a view to provide good after sales services to the customer. This exercise will also check the company to check the u s e o f s p u r i o u s p r o d u c t s , w h i c h u l t i m a t e l y s p o i l t h e b i k e . T h e h i g h w a ys t o b e c o v e r e d i n t h i s scheme are: NEW DELHI-GWALIOR NEW DELHI-CHANDIGARH AMBALA-LUDHIANA KOLKATTA-DHANBAD The company has a dream to increase this figure of 458 dealers to 650 by the end of 2003a n d i n c r e a s e t h e f i g u r e o f 2 5 6 s e r v i c e s t a t i o n s t o 3 5 0 b y t h e e n d o f t h e y e a r 2 0 0 3 . T h e company is going by an expansion process. The company is perhaps the second company after Maruti Udyog Limited to implement a f a c t o r y f r e s h concept. The company is the only company in the two-wheeler segment having so much of vast distribution network. Hero Moto Corp will be

adding 25 more dealers and 50service stations to build a network of 575 d e a l e r s h i p - c u m - s e r v i c e p o i n t s (including 400 dealerships) across the country. The level of investment in an automated Hero Moto Corp service station is expected to be around Rs 10 lakh, apart from land and building. ``No dealer has any problem in expanding business,'' says Tapan, Marketing manager. ``We've tied up with Citibank and Centurion to p r o v i d e b i l l d i s c o u n t i n g t h r o u g h o u r d e a l e r s . C o n s u m e r F i n a n c e : I n o r d e r t o f o c u s o n organized consumer financing, Hero Moto Corp tied up with Tata Finance a week ago. Thisis Hero Moto Corp's second tie-up following Centurion, which is accounting for around3,000 bikes a month through 100 dealerships. A thorough understanding of the fast-changing consumer behaviour, new

market segment sand product opportunities along with sensitivity to changing customer needs, form the core of Hero's marketing strategy and philosophy. At Hero we essentially have dealer network a completely customer-driven comprising of approach. A nation-wide over 3,500

bicycled e a l e r s , 3 5 0 d e a l e r s f o r m o p e d s a n d 2 2 5 f r a n c h i s e h o l d e r s f o r m o t o r c y c l e s , e n s u r e s convenient access to the Group's products across the country. With a deep sense of belonging to the Hero fraternit y, the Group's dealer n e t w o r k h a s catalysed growth and acted as a strong bridge between the customers and the Group.C o n v e n t i o n a l l y , v e r y f e w I n d i a n b i c y c l e m a n u f a c t u r e r s w e r e i n t e r e s t e d i n e x p o r t s . However, the Hero Group's foray into the overseas markets pioneered Indian exports in the b i c y c l e s e g m e n t a s e a r l y a s 1 9 6 3 . I t w a s a m o v e p r o m p t e d p r i m a r i l y b y t h e n e e d t o b e attuned to the global marketplace. W h i l e i n i t i a l e x p o r t s w e r e r e s t r i c t e d t o A f r i c a a n d t h e M i d d l e E a s t , t o d a y m o r e t h a n 5 0 percent of the Group's bicycle exports meet the demands of sophisticated markets in Europe and America. This is primarily because of appropriate product development and excellent quality that Hero offers. The Group has undertaken a steady upgradation of technologies and there has been diversifications and setting up of newer establishments to meet stringent international standards. At the core of it all is a customer-centric scheme of policies and production and the bottom line is to "Add Value while Engineering Satisfaction. PRODUCT STRATEGIES OF HERO MOTO CORP

Hero Hero shifted its focus from catering to the fuel efficient conscious con sumer to trya n d o c c u p y o t h e r s e g m e n t s o f t h e m o t o r b i k e m a r k e t a n d t h e r e f o r e t h e n e w p r o d u c t launches from Hero Moto Corp in the last three year have been in this direction. The company has also upgraded some of its b i k e s t o s t a y i n c o n t e n t i o n a n d t o m e e t E u r o emission norms. The new underlining theme for the company One for everyone as led to the launching of new products, which are as follows: Street Smart: Hero Moto Corp introduced its Street Smart in 1997. The company who were more inclined towards the scooters and who thought that the scooters were more safer than the motorcycles, thus Hero Moto Corp decided to launch the Street Smart. The bike w a s built in such a way that it resembled more like a scooters, than a m o t o r c y c l e , b u t actually it is a motorbike. I.e. it is a hybrid Product Description (HERO MOTO CORP Ltd.) Hero Moto Corp has launched the following motorbikes in the Indian market.

HERO MOTO CORP CD 100

HERO MOTO CORP CD 100 SS

HERO SLEEK

HERO MOTO CORP Splendor

HERO MOTO CORP Street Smart

HERO MOTO CORP CBZ

HERO MOTO CORP Joy

HERO MOTO CORP Passion

HERO MOTO CORP AmbitionH e r o H e r o s h i f t e d i t s f o c u s f r o m c a t e r i n g t o t h e f u e l e f f i c i e n t c o n s c i o u s consumer to try and occupy other segments of the motorbike market and therefore thenew product launches from Hero Moto Corp in the last three year have been in thisdirection. The company has also upgraded some of its bikes to stay in contention andto meet Euro emission norms. The new underlining theme for the company One for e v e r y o n e h a s l e d t o t h e l a u n c h i n g o f n e w p r o d u c t s W i t h t h e l a u n c h o f n e w motorbikes and various other motorbikes in the pipeline, Hero Moto Corps strategyis to get into these segments of the motorcycle market where they have not made inroads earlier. PRICING STRATEGIES OF HERO MOTO CORP The company has a policy to price its product very competitively. In todays world,one cannot has a skimming pricing says Mr. Tapan, marketing manager, Hero MotoC o r p . N e c e s s a r i l y t h e p r i c i n g p o l i c y i s c o m p l e t e l y a b l e n d o f t w o s t r a t e g i e s i . e . Penetration and Skimming. It has been the companys policy to provide the customerswith value for money-give more for less. We are the only company in the two wheeler s e g m e n t t h a t i s i n t h e p r o c e s s o f p a s s i n g o n t h e w h o l e b e n e f i t o f c o s t a d v a n t a g e achieved as a result of the increased localization levels of upto 60% to the customers.We are in the process of keeping our product increasing popular and affordable. Thecompany keeps telling its customers to think about Quality rather than price. Further if one talks about the changes in the price in the last three years, the prices have never b e e n c h a n g e d e x c e p t t h e b u d g e t s e x c e p t o n c e i n A P R I L 2 0 1 1 , w h e n t h e c o m p a n y started off with their celebration offer, and thus decided to sanctioned a discount a n d curtail on every Model Rs

1 0 0 1 \ - . T h e c o m p a n y i s s u r e l y i n a b u s i n e s s o f delivering quality rather than price. For instance the Boxer, which is of only 29,990and is the cheapest bike of the industry. The company gives importance to the quality rather than cheap products.W e l l H e r o M o t o C o r p h a s b i k e s a t d i f f e r e n t p r i c e p o i n t b u t t h e r e i s o n e c o m m o n thing that is they are priced at a premium of INR 2000 - 3000 from

the competitorsand it seems their strategy is working fine with the target customers as it is the largestseller of bikes in the Indian market with a market share of 48 % .Customers are redyto shell out the extra money because they believe and its fact that the fuel efficiencyo f t h e b i k e s i s m u c h b e t t e r t h a n i t s c o m p e t i t o r s t h e d i f f e r e n t price : R points N I A C for M E H e r o Motors E Limited P are

Dawn ------------------- - - - - - - - - - - - - - 52,000-60,000Thus we

32,000S p l e n d o r

4 1 , 0 0 0 Passion ---------------- 44,000Cbz---------------------

find that HML has bikes for every one for entry level customers they haved a w n w h i c h i s a n o f r i l l a t t a c h e d p r o d u c t w h o s e e m p h a s i s i s o n m i l e a g e w i t h performance .And for customers who like to have bike which is good at performancea n d w i t h d e s c e n t l o o k s t h e y h a v e S p l e n d o r w h i c h i s their fastest selling bike and

account for half of the total sales. Customers who are looking for style with p erformance can go for Passion which is a huge success among the urban class as it is p r i c e d little bit higher than splendor and the looks of the bike are astounding. F o r customers who want style and power they have CBZ which is targeted towards the premium segment and it was a runaway success initially but is not a hot seller nowdue to some problems. Hero Moto Corp is planning to introduce few more models inyears time in order to make their portfolio of products more versatile. They are tryingt o i n t r o d u c e n e w m o d e l s a n d t h e y a r e t r y i n g t o i n t r o d u c e m o d e l s a t t h e p r e m i u m segment as it has high margins and the company feels that its the segment which iswill grow in the near f uture as the income of people will increase with the change of life styles .HML also intend to introduce few models which are economical in naturea s t h e y t h i s s e g m e n t p r o v i d e s t h e v o l u m e s t o t h e c o m p a n y . H e r o M o t o C o r p s t i l l wants to charge a price of premi um as its brand enjoys a high level of respectabilityand reliability among the target customers as their products have already proved their mettle in the market and enjoy high level of

brand equity among the target customers.Hero Moto Corp has an advantage of large no of dealers and also economies of scalewhich help them to absorb the costs to a great extent. PROMOTIONAL STRATEGIES OF HERO MOTO CORPHero Moto Corp rides safe Hero Moto Corp's `Ride Safe and Good Rider' campaign is aimed at

communicatingthe philosophy of delivering safe products and promoting good driving for the overallsafety of the Hero Moto Corp customer. Created by McCann Erickson, the ad-- HeroM o t o C o r p c a r e s f o r y o u r s a f e t y - - i n v i t e d a l l H e r o M o t o C o r p o w n e r s t o a t t e n d t h e Ride Safe programme on October 27, 2011 at Delhi's India Gate lawns. This was

thef i r s t p h a s e o f t h e p r o g r a m m e , w h e r e t h r e e i n s t r u c t o r s f r o m J a p a n d e m o n s t r a t e d techniques of right driving. In the second phase, Hero Moto Corp will communicatethe launch of the 4S concept (sales, service, spare parts and safety) at Hero Moto Corpdealerships. The focus of the third phase will be to promote the launch of the HeroMoto Corp Safety Riding Promotion School, which will have riding simulators andsafety riding tracksHero Hero will take the riding programme-where trained personnel will give ridingtips to bike owners-- to over 100 dealerships across 90

towns.P r o m o t i o n i n t h i s s e c t o r c a n n o t b e l i k e t h a t i n t h e F a s t M o v i n g A u t o p a t s (Automobile) sector. The promotions in this sector are like 0% finance schemes and other sort of things. The company takes the services of many good and r e p u t e d advertising agencies like Reddifuusion, Lintas, sachi & Sachi and others.The company has also signed a kind of agreement with two celebrities just now t o betheir brand ambassadors. Hero Moto Corp, a leading manufacturer of

motorcycles,h a s r o p e d i n f i l m a c t o r H r i t h i k R o s h a n a n d c a p t a i n o f I n d i a n C r i c k e t t e a m S o u r a v Ganguly as its brand ambassadors for three years till 2003.They would endorse the company products, attend corporate and brand events and h e l p promote its "we care" campaign comprising safety riding, environment, a n d friendliness.Hrithik and Ganguly said they were glad to be associated with Hero Moto Corp. Herohas 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, 1,12,000 motorcycles have been sold, Compared to 66,063 units inthe corresponding period last year, the increase in sales is a phenomenal 69 per cent.C u m u l a t i v e s a l e s j u m p e d u p b y 4 1 . 5 8 p e r c e n t t o 5 . 7 2 l a k h s u n i t s d u r i n g A p r i l - October as against 4.04 lakh units in the same period last year.At Hero Moto Corp , our goal is not only to sell the customer a bike, but also to helphim at every step of the way in making the correct riding decisions. Assisting him inmaking the right judgments on the road, and helping him to choose the right helmet and other riding equipmentAnd as bike handling requires know-how, skill, and rigorous mental conditioning, weh a v e p u t t o g e t h e r c e r t a i n s a f e t y t i p s a n d s u g g e s t i o n s t h a t w i l l e n h a n c e t h e r i d i n g comfort. Last but not the least, it is always important to remember - a good rider is asafe rider.Hero Moto Corp is enhancing the Advertising &Promotion budget by around 35 per c e n t f r o m R s 4 1 c r o r e i n 1 9 9 9 the world's

2 0 0 0 . A p a r t f r o m c o n c e n t r a t i n g o n m a i n s t r e a m Splendor--

largest selling bike-- and upscale CBZ motorcycles, Hero MotoC o r p h a s i d e n t i f i e d ` ` s o f t areas'' like services and spares parts for the purpose o f intense

communication. The creative account of Hero Moto Corp rest with big nameslike Hindustan Thompson Association, Lintas, Sachi and Sachi and so on. Hero MotoC o r p i s a l s o planning a major campaign to re-launch the r e s t yl e d step-thru

S t r e e t Smart. While customer references-- and not media strategy-- are expected to supportt h e C D b r a n d s a l e s , H e r o M o t o C o r p w i l l l o o k a t s o c i a l a r e a s - like civic issues, association with Non Government Organizations, contribution to greener causes-for corporate communications.The corporate campaign will be largely complemented by on-ground initiatives under the umbrella brand of ``We Care'', incorporating activities in the arena of community services, safety and services programmes, treeplantations and environmental-friendly projects. In line with Hero's worldwide, safety riding programme, this fiscal Hero Moto CorpMotors Limited will take the riding programme-- where trained personnel will give riding tips to bike owners

You might also like