ACKNOWLEDGMENT At the very onset, I would sincerely like to thank of building up our confidence,which let to the fulfillment of our

project.The completion of this project is due to the help of few individuals whom I cannot letgo unhanded.I wish to express our deep gratitude especially to our guide without whose guidance, support and encouragement. I would have not been able to complete this report that delves cursorily on the aspects of Marketing Strategy of Hero Moto Corp Ltd It is needless to say that any piece of creative work require the involvement of a number of individuals, since it is beyond the scope of limitation to enlist each and every individuals associated withthis work who extended their co-operation in sharing unbiased views and feedback which helped to collect concrete data. Hence, I would express our sincere gratitude to all those who played contributory role directly or indirectly towards accomplishment of our project.

PREFACE If we want to go global in the world market then we must know the trend of themarket, what features must be there in the product so that it should get popularityamong the masses and also should know about competitors position in every field.The objective of survey is to know the strategy of Hero Moto Corp in the worldmarket and we must know what should be the price range and what types of marketing should be done so that it gets familiar with every type of person. So needsand objectives of the market survey is very important to get a good market share ,stand in the market and to survive the business in the present competitive world wherethere is a trend of cutthroat competition.Hero Moto Corp is a leading company in bikes sector. Knowing the comparative position of a brand vis--vis its competitors is an essential thing as well as product isessential for deciding appropriate marketing strategies for any company. It was then the project was undertaken in order to 1.What is the prospective customers market for Hero Moto Corp in the world2.Know the choice of residents of other foreign countries3.Know the brand image of Hero Moto Corp4.Perceive the future sales of Hero Moto Corp products5.Pricing in the view of prospective customers6.Mode of purchasing the product

EXECUTIVE SUMMARY

Hero Moto Corp the Principal activities of the Company is manufacturing andmarketing of motorcycles and spare parts. The Company is a joint venture betweenHero Group, India. The Motorcycles of the Company features facilities such as four stroke technology, phenomenal fuel economy and low exhaust pollution levels. The major brands of the Company include Splendor, Joy and Passion. The two manufacturing facilities of the Company are located in Haryana. Motorcycles accounted for 95% of fiscal 2009 gross revenues and spare parts, 5%. Grows over 500% in five years For 2010-11, volume up by 38 per cent ; net profit soars by 88 per cent; total turnover up by 42 per cent Achieves a high 48 per cent motorcycle market share; and 33 per cent two-wheeler market share Announces 350 per cent final dividend and 250 per cent celebration dividend (over and above special interim dividend of 250%) Over the last five years, company's total turnover grows by a whopping 580 %; PAT by 919 % New Delhi, April13, 2011: Hero Moto Corp Co..,the newly crowned World No. 1 two wheeler companies, declared outstandingfinancial results for the year 2010-11. Profit after tax (PAT) is Rs. 462.93 crore, agrowth of 88 per cent. The company's total turnover (sales plus other income, net of excise) grew to Rs. 4539.49 crore, a growth of 42 per cent. In a landmark run, thecompany achieved a 48 per cent market share in the motorcycle category during theyear; and 33 per cent of the total two -wheeler market. The company recorded acumulative sale of over 14.25 lacs motorcycles for the year 2010-11.The company's Spare Parts business also showed a remarkable increase of 39 per cent, taking the annual sales to Rs. 209 crore. Encouraged by the response thecompany has set a target of Rs. 250 crore for the current financial year.Hero Moto Corp's growth over the last five years has been truly outstanding, with both revenue and PAT showing significant jumps of over 5 times. While the revenueincreased from Rs. 783 crore in 2008-09 to Rs. 4539 crore in 2010-11. PAT hasincreased from Rs. 50 crore in 2008-09 to Rs. 463 crore in 2010-11. The total saleshas also increased from 2,68,931 motorcycles in 2010-11 to 14,25,302 motorcycles in2010-11, with volume market share jumping from 27 per cent to 48 per cent inmotorcycles; and 9% to 33% in two-wheelers.Mr. Brijmohan Lall, Chairman andManaging Director, Hero Moto Corp., commending the company's achievement said,"I thank all our stakeholders - our Hero Moto Corp family of employees, ancillaries,-vendors, dealers, other business associates, and most importantly, our customers.They have been instrumental in our achieving the World No.1 status. I would also liketo make special mention of the excellent support provided all through by our jointventure partners Hero Moto Corp Company, and Hero Cycles Ltd. Our relationshipwith them has been wonderful and mutually satisfying. As we move forward, our collaborative approach will help us continue our lead." On the momentous occasion,Mr. Pawan Munjal, Director and CEO, Hero Moto Corp. Said, "The key reason for our success has been our continuous pursuit of pro-actively delivering value anddelight to our customers. This is evident from the pioneering initiatives we undertook during 2011 - like the full two-year warranty on all Hero Moto Corp models, and thelaunch of the most comprehensive Customer Relationship Programme, 'The HeroMoto Corp Passport Programme'. Further, despite strong competition and pressureson the

economy as a whole, the company has improved operating profits significantly,mainly because of cost rationalization, strong working capital management andmanufacturing efficiencies."He added, "We are committed to continue our lead, bydelivering even better value to the customers, in the year ahead. Accordingly, severalnew and exciting product launches are lined up for 2008-09, and in the future. Themanufacturing facilities to support the customer demand would also be pro-activelyset up, as has been done till now." Especially present on the occasion was Mr. K Suzuki, Senior Managing Director, Hero Moto Corp Company, Japan, who had flownin only that morning to attend the Press Conference and the World No. 1 celebrations.Clearly ecstatic he said, I congratulate Hero Moto Corp for their wonderful andconsistent achievements. Last year they achieved the distinction of being No. 1 JointVenture of Hero Moto Corp Company worldwide; and this year achieved the uniquestatus of World No. 1 two wheeler companies. Our relationship has always beenstrong and solid. We are proud of this achievement for the Hero Group, Hero MotoCorp Company, and the Indo-Japanese co-operation. We would continue to provideall the necessary support to Hero Moto Corp, for it to remain on the top".

INTRODUCTION The Indian Two Wheeler Industry The Indian two wheeler sector contributes the largest volumes amongst all thesegments in automobile Industry. Though the segment can be broadly categorized into 3-sub segments viz; scooters, motorcycles and mopeds; some categories introducedin the market are a combination of two or more segments e.g. scooter and stepthrus.The market primarily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well known Japanese firms earlier.But with most of the companies now planning 100% subsidiaries in India.In the last four to five years, the two-wheeler market has witnessed a market shifttowards motor cycles at the expense of scooters. In the rural areas, consumers havecome to prefer sturdier bikes to with stand the bad road conditions. In the process of the share of motor cycle segment has grown from 48% to 58%, the share of scootersdeclined drastically from 33% to 25%, while that of mopeds declined by 2% from19% to 17% during the year 2009-10. All new vehicles are a now being replaced by 4stock motorcycles. Reduced excise duties and fierce competition has led to a fall in prices of certain models.Hero, a name synonymous with two wheelers in India, began its journey around four decades ago. Starting as a manufacturer of by cycle components, hero has todaygrown into a multiunit, multiproduct, geographically diversified group of companies.The hero group began with simple Philosophy: to provide excellent transportation tothe common man, at a price he could easily afford. Even today the dream providingthe total satisfaction is all its sphere of activity. To consumers, in excellent products atan affordable price;

a thorough understanding the fast changing consumer understanding the fast changing consumer behaviour, new market segment andopportunities, and marketing mix sensitive changing customer needs from the core of Heros marketing strategy and philosophy.Hero Moto Corp. is one of the leading companies in the two wheeler Industry. At present, it is segment with around 47% the market share during financial yr. 2000-01.The company ahs emerged one of the most of successful players, much ahead of itcompetitors by it superior and reliable product quality complemented with excellentmarketing techniques.

Hero Moto Corp has been an early entrant in the 4-stroke segment of the two wheeler industry. With a right mix of product styling and pricing the company has graped the4-stoke market as compared to Bajaj Auto and TVS.TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent asa low cost transportations and provide a tremendous potential is all parts of India.However the company is likely to face threat Bajaj Auto Ltd (BAL) which continuedits price based competitions and Hero Moto Corp cycle and Scooter Ltd. a newentrants in the 2 wheeler market.Infact the company has achieved excelled the Industry growth rates by a huge margin.From April to December 2008 while the motor cycle industry sales were upto38.68% TVS motors sales surged by a whooping 73.6% sat more importantly it is thesuccess of its model Victor.Baja Auto has continued with its impressive performance witnessing significantgrowth is the motor cycle and three wheeler segments. Based on the performance filldata one can expect the company to meet it excellence by FY09.Hero Moto Corp is the largest player is the motorcycle segment. Focused oncontemporary design and style, the company has a compare leusine ranges bikes viz;CD-100 DXCD-100 SSSplendor Street SmartSteek CBZPassionIt splendor model is an urban centric with its fuel efficiency which accounts to over 60-70% of its sales. The passion launched in mid Jan. 2001 has a resending successcontributing to 26% of its sales.TVS offers a wide ranges of twowheelers motorcycles- Victor/Fiero/Max100/max100R/Max DL.Scooterette- TVS scootyMoped- chap/XL/XL super/XL supper HD/sports.TVS plans to launch 4 new models in the coming 15 months. A 4-stroke version of Indias best selling scooterttes; TVS-scooty and 4-stroke version of the existingmoped line will be launched this year.

Bajaj Auto Ltd: Offer product a service to the customers so as to satisfy their needs.Its having 4-stroke single cylinder natural air cool the displacement of engine is111.6 CC having the engine power it 7-7 bhp at 7000 spm. The bike is having ahydrometric disc brake in front wheel. Flash is an added future in the bike.In 1993 BAL manufactured 12 different model 5-5 scooter model, 3-motorcyclemodel, moped model, 3-three wheeler model.But in the recent year Bajaj developed various model in the motorcycle segmentwhich providing good riding conditions is

urban road as well as rater roads. Scooter-cub/super/super FE/chetak/stride/Msl Priya.Moped- Bajaj Sunny.Motorcycle- M-80/kawasaki RTZ/Kawasaki45 by 1993 and latest model are.Eliminator/Pulsor 180/Pulsor 150/Boxer/Caliber Crowa/Caliber Sales performance of the player:Hero Moto Corp repeated a y-o-y growth of 6.3% is its motorcycle sales for themonth of Jan 2006 at 1,45,708 units. Export during the month have surged almost64% y-o-y. On a month on-month basis the sales growth has been even higher up16.5%.

Bajaj Auto: Bajaj auto has reported y-o-y growth of 19.8% in motorcycle sales for Jan2006 at 75059 units. On a month-on-month basis the growth is 8.8%. Export performance continues to be impressive with 10,089 two and three wheelers exportedin Jan 2006, a growth of 98.6% y-o-y.Two wheeler sales for the current year are up 6.8%. The growth is driven sharply inthe motor cycle sales upto 37% in two wheeler segment, the share of motor cycle has jumped from 52.8% to 67.8% during the current year. this sharp growth in the motor cycle can be attributed to the positive response received by its need products and theencouraging performance of select existing model.

India is the second largest manufacturer and producer of two wheelers in the world. Itstands next only to Japan and China in terms of the number of two-wheelers producedand domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the publictransportation system etc.The Indian two-wheeler industry made a small beginning in the early 50s whenAutomobile Products of India (API) started manufacturing scooters in the country.Until 1958, API and Enfield were the sole producers.In 1948, Bajaj Auto began trading in imported Vespa Scooters and three-wheelers.Finally, in 1960, it set up a shop to manufacture them in technical collaboration withPiaggio of Italy. The agreement expired in 1971.In the initial stages, the scooter segment was dominated by API, it was later overtaken by Bajaj Auto. Although various government and private enterprisesentered the fray for scooters, the only new player that has lasted till today is LML.Under the regulated regime, foreign companies were not allowed to operate in India.It was a complete seller market with the waiting period for getting a scooter fromBajaj Auto being as high as 12 years.The Motorcycles segment was no different, with only three manufacturers viz Enfield,ideal Jawa and Escorts. While Enfield bullet was a four stroke bike, Jawa and theRajdoot were two-stroke bikes. The motorcycle segment was initially dominated byEnfield 350cc bikes and Escorts 175cc bike.The two wheeler market was opened to foreign competition in the mid-80s. And thethen market leaders- Escorts and Enfield were caught unaware by the onslaught of the100cc bikes of the four Indo-Japanese joint ventures. With the availability of

fuelefficient low power bikes, demand swelled, resulting in Hero Moto Corp then the only producer of four stroke bikes (100cc category), gaining a top slot.The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki andHero Moto Corp brought in the first two-stroke and four stroke engine motorcyclesrespectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years.The Industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw asudden growth in the 80s. the industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990.The entry of Kinetic Hero in mid-eighties with a variometric scooter helped in providing ease of use to the scooter owners. This helped in inducing youngsters andworking women, towards buying scooters, who were earlier inclined towards moped purchases. In the 90s, this trend was reversed with the introduction of scooterettes. Inline with this, the scooter segment has consistently lost its part of the market share inthe two-wheeler market.In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in adecline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4 mnvehicles. Barring Hero Moto Corp , all the major producers suffered from recession inFY93 and FY94. Hero Moto Corp showed a marginal decline in 1992.The reasons for recession in the sector were the incessant rise in fuel prices, highinput costs and reduced purchasing power due to significant rise in general price leveland credit crunch in consumer financing. Factors like increased production in 1992,due to new entrants coupled with the recession in the industry resulted in companieseither reporting looses or a fall in profits.India is one of the very few countries manufacturing three- wheelers in the world. It isthe worlds largest manufacturer and seller of three-wheelers. Bajaj Auto commands amonopoly in the domestic market with a market share of above 80%, the rest is shared by Bajaj Tempo, Greaves Ltd and Scooters India.The total number of registered two wheelers and three-wheelers on road in India, ason March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler populationhas almost doubled in 1996 from a base of .6mn in 1990.Automobile Industry in India TVS Centra crosses an astounding 20,000 sales mark in40 days Hosur, March 6, 2006: TVS Motor Company today announced that the salesof TVS Centra, powered by the indigenously developed Variable Timing Intelligent(VT-i) engine technology crossed 20,000 units in just 40 days since its launch in midJanuary 2004, the best ever clocked by any new product from the TVS Motor Company stable. This achievement is expected to spiral the overall growth of TVSMotorcycles sales in the coming months.The impressive sales figures reflect the customer's faith in the technological capabilityof TVS Motor Company to fully live up to its promise of delivering a worldclass product at an affordable price. Due to excellent customer feedback across the country,TVS dealers are being pressurised with enquiries on the new 100 CC 4 Stroke Centraand its revolutionary VT-i engine technology. Having caught the public's imagination,TVS Centra has fully lived up to its promise of a 'Fill it Once a

Month Bike' where afull tank of petrol lasts for a month based on the average use of motorcycle customers.A panel of leading auto experts in India, after having tested TVS Centra, haveendorsed the fact that it was the 'best in its class' and also commended TVS Motor Company on its technology prowess and innovation.TVS Centra is powered by VT-i engines which are designed to deliver superb performance on fuel efficiency and torque delivery based on three fundamentalactions namely variable ignition timing and superior combustion of fuel, frictionreduction and fuel wastage reduction.Added to its technological edge are features that include attractive price, fuelefficiency, low maintenance, contemporary style, ride comfort and backed by TVSMotor Company's reliability, making it truly the preferred two-wheeler in its class.Chennai, January 5, 2004: India's leading two wheeler major, TVS Motor Company'scommitment to produce the best technology in its products for its customers has led tothe launch of TVS Centra with Variable Timing intelligent engines(VT-i), a 100 CC 4 Stroke motorcycle targeted at the Popular Segment.This revolutionary new VT-i engine technology, developed indigenously by TVSMotor Company, inbuilt into TVS Centra will make it the most fuel-efficientmotorcycle in the Country. It will be rightfully called as the 'Fill it Once a MonthBike' where a full tank of petrol will last for a month based on the average use of motorcycle customers.The VT-i Engines by TVS Motor Company will go down in the history of theAutomobile Industry in India as one of the most innovative technologydeveloped indigenously. The VT-i engines are designed to deliver superb performance on fuel efficiency and torque delivery based on three fundamentalactions namely variable ignition timing and superior combustion of fuel, friction reduction and fuel wastage reduction. This action facilitates deceleration fuel cut off,faster warm up of the Engine and has four curve ignition mappingLike all TVS Motor Company products, TVS Centra too has been engineered anddesigned keeping in mind extensive customer feedback and changing customer needs.TVS Centra will be the first motorcycle in India that will bundle price, mileage,maintenance, style, reliability, power, ruggedness and ride comfort making it truly avalue for money personal transportation two-wheeler. Those who want all these performance attributes in a commuter motorcycle at a great price; nothing will beatthe TVS Centra for all the advantages it offers.TVS Centra is built around to give a mileage that will offer atleast 10 per cent morethan any other motorcycle in the country, today. It will be powered by 7.5 BrakeHorsePower (Bhp) at 7250 RPM making it the most powerful motorcycle in its class.TVS Centra will also be known for its nimble handling and riding comfort enablingeasy maneuvering even in busy city traffic. Its contemporary style with big muscular tank and well-rounded looks with a horizontal engine and superior ergonomics willmark a new standard in the popular segment of two wheelers. It will come withEconometer to keep a check on the mileage / power ratio, wide and skid free seat andUtility space.Victor the Saviour TVS launched Victor 110 cc model in September 2001, with leading cricketer SachinTendulkar as the brand ambassador the model has proved to be a big success. Thesuccess of TVS Victor is especially significant because it was developed withindigenous technology.

Two stroke Max Range On the way out The company is currently looking forward to phase out its two stroke Max range,which is perceived to be less fuel efficient with a new four stroke range. The changeover is expected to take place by the end of June 2010. Two new launches could out TVS on a high growth trajectory TVS CentraTVS Centra a new 100 cc model has recently been launched and the company has setambitions targets of achieving monthly sales in the range of 15000-20000 bikes per month.Also, a new upgraded 125 cc TVS Victor has been launched which will improve thetrajectory of the company.Three Wheeler ProjectEntering A New MarketTVS Motor has set the stage for entry into the three-wheeler markets with the settingup of a new plant at Nanjangud, near Mysore in Karnataka. We understand that thecompany would be targeting the sub-one ton passenger and goods carriers segment of the market.With an investment of about Rs 50 crore in phase-1, it will cater to both passenger and cargo segments. The total investments for the three wheeler and four-wheeler quardricycle project are expected to be in the range of Rs 500 crore in the next two-three years. It plans to go with petrol version of three wheelers and expects higher demand to come from B class towns. The company expects higher margin and lowcompetition in three-wheeler business as compared to its two-wheeler business. Threewheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh unitsFY 03, and are expected to grow at the same rate for the next five years. TVS isexpected to roll out its first three-wheeler by the end of FY05 to garner a 30% marketshare with around 100,000 unit sales by the end of FY08.Three-Wheeler Market ScenarioThese are two main segments in the Indian passenger three -wheeler markets are: Number of seats including driver not exceeding 4 and maximum max not exceeding 1tonne. Number of seats including driver excluding 4 but not exceeding 7 max mass notexceeding 1.5 tonnes.The three-wheeler goods carrier segments are:Maximum mass not exceeding 1 tonne Others.

Around 95% of the three-wheeler sold in India belong to the smaller vehicles categoryin which Bajaj Auto is the major player and has around 90% market share. The other players in the segment are Atul Auto and Piaggio group, Italy.Similarly, in the three-wheeler segment, domestic sales of the goods carrying varietygrew a whopping 46.95%. This growth in 2008-09 could have possibly come fromtwo factors.1) The increasing number of cities whose corporations have legislated that larger goods carrier, like trucks be kept out for logistics purpose.2)The increase in the number of offerings in this category, especially from companiessuch as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.Quardricycle-A new introduction in the Indian marketThere is a new challenger emerging in the Quardricycle

segment. These new vehiclescould impact on the entry level sales. These new vehicle could impact on the entrylevel sales. Quardricycles are three wheelers converted into four wheelers by using, acolumn axle. All the major three-wheeler units have prepared Quardricycles prototypes.Plans setting up manufacturing units in Indonesia / VietnamTVS motor is actively looking to set up a foothold in the south east Asian markets andhas made top level visits to Indonesia & Vietnam. Indonesia is the third largest two-wheeler market in the world with an estimated size this year of two million units.Presently in Indonesia there is one motorcycle for every 15 people, in Vietnam onefor every seven people. Further in Indonesia forty million households, representing86% of the total not having a motorcycle.Merger of engine components Division of Lakshmi Auto components with TVSMotor:TVS motor would merge engine component division of Lakshmi Auto ComponentLtd. (LAC) and investments and other assests with itself and the dwap ratio has beenfixed at once phase of TVS motor for every seven share held as consideration for themerger. Presently TVS motor holds 66.5% of equity capital of LAC, which would becancelled. Around 66% of LACs sales come from the engine components division,mode of which is currently being sold to TVS motor. LACs total net sales in HI FY09 were Rs. 69 crore and made anet profit of Rs. 10.5 crore..

The Plastics and Rubber components division of LAC will be transferred to thewholly owned subsidiary company, Sundaram Auto Components Ltd. The totalconsideration on slump sale based is Rs. 12.25 crore. Strong focus on R&D The company has put in place a strong R & D team consisting 400 engineers & isspending about 3% of its turnover on R & D every year and has in the process setup astrong world class facility for product design and development. During 200910, thecompany applied for 16 patents & published five technical research papers ininternational conference. Modified research projects are carried in association withleading international research labs and Indian institutes. R & D as percentage of salesin expected to increase from 1.5% in FY o2 to 3.2% in FY 11. ValuationThe companys valuations are dependent on five events: Current four businesses grow at the normal industry growth rates. New product launches achieve their targets and are well accepted by themarket.

Three wheeler foray achieve targeted volume in the desired rates of return oncapital employed. Quadricycle foray achieve the desired rate of return on the capital employed. Overall investment returns. In TVS motor company VICTOR is the most popular bike and veryinterestingly without any media interaction FIERO F2 has taken the 2nd spotwith CENTRA on the 3rd spot which has taken a lead with only one placefrom MAX-R .It is recommended that FIERO F2 should be given equal sales promotion than CENTRA because of its popularity has come through peoplenetwork and not through channel media.

Marketing Strategy A thorough understanding of the fast-changing Marketing Strategy, new marketsegments and product opportunities along with sensitivity to changing customer needs,form the core of Hero's marketing strategy and philosophy. At Hero we essentiallyhave a completely customer-driven approach. A nation-wide dealer network comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225 franchiseholders for motorcycles, ensures convenient access to the Group's products across thecountry.With a deep sense of belonging to the Hero fraternity, the Group's dealer network hascatalyzed growth and acted as a strong bridge between the customers and the Group.Conventionally, very few Indian bicycle manufacturers were interested in exports.However, the Hero Group's foray into the overseas markets pioneered Indian exports inthe bicycle segment as early as 1963. It was a move prompted primarily by the need to be attuned to the global marketplace.While initial exports were restricted to Africa and the Middle East, today more than 50 percent of the Group's bicycle exports meet the demands of sophisticated markets inEurope and America. This is primarily because of appropriate product development andexcellent quality that Hero offers.The Group has undertaken a steady up gradation of technologies and there has beendiversifications and setting up of newer establishments to meet stringent internationalstandards. 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." PARTNERSHIPS, ALLIANCES AND JOINT VENTURES

 Hero's quest for a low-budget, fuel-efficient and environment-friendly two-wheeler led Hero Moto Corp to enter into a Technical Collaboration with Steyr Daimler Punch of Austria in 1987 for the manufacture of the 65cc, Porsche-design minimotorcycles. Munjal Showa Limited was formed in Technical and Financial Collaboration withShowa Corporation, Japan, to design, develop and manufacture of front forks,shock absorbers, struts and gas struts. Sunbeam Auto Limited has set-up a state of the art piston manufacturing facilityin technical collaboration with M/S Hero Foundry Company Limited of Japan, the pioneers in the world for manufacturing high-strength lightweight pistons used inlight, powerful fuel-efficient engines Munjal Auto Industries Limited has a jointventure with the State-owned Gujarat Industrial Investment Corporation, to cater to the needs of the overseas market. Hero Cycles CR Division was set up in consultation with MECON, Asia's largestengineering consultants and in Technical Collaboration with Wean United, USA. Hero Cycles Cold Rolling Division has also entered into a technical collaborationwith Kawasaki Steel Corporation, Japan for the improvement of production yield,elimination of defects, reduction of customer returns and enhancement of maintenance operations against certain predetermined targets.

QUALITY Quality at Hero is attained not just by modern plants and equipment and through latesttechnology, but by enforcing a strict discipline. At the Group factories, attainingquality standards is an everyday practice - a strictly pursued discipline. It comes froman amalgamation of the latest technology with deep-rooted experience derived fromnearly four decades of hard labor.It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Conformance to quality at Hero begins on the shop floor. Every worker ensuresat each stage of manufacturing that any of the faulty products are not allowed to gothrough further

manufacturing and distribution cycles.Today quality is ensured from steel processing to the finished product. Eachcomponent goes through numerous tests at the stages of design, raw material procurement and, of course, during the manufacturing process.Constant technology up gradation ensures that the Group stays in the globalmainstream and maintains its competitive edge. With each of its foreign collaborations,the Group goes onto strengthen its quality measures as per the book. The Group alsoemploys the services of independent experts from around the world to assist in newdesign and production processes. Nevertheless, in this race to acquire the most modern techniques and technologies andto collaborate with the most advanced players in the market, the core competencecontinues to be derived from the Group's philosophy - "To Engineer Satisfaction."

MARKETING MIX: Standardised Marketing Mix: An international marketing strategy for using basically the same product, advertising,distribution channels & other elements of the marketing mix in all the countries of companys international market. Adapted Marketing Mix: An international marketing strategy for adjusting the marketing mix elements to eachinternational target market, bearing more costs but hoping for a larger market share &return. International Scenario A two-wheeler is used as a personal/family vehicle or a goods carrier in the envelopingcountries, whereas it is confined to sports/racing (heavy motorcycles) or short istanceshopping (mopeds) in developed countries.The world two-wheeler market is dominated by Japan. Japanese manufacturersaccount for around 65% of the total two-wheeler production in the world. However, production within Japan has been declining due to lower domestic demand and shiftin manufacturing base outside the country. Japan is also the world's largest exporter of two-wheelers in the world controlling around 75% of the world trade. Its major markets are China, USA and Europe. In terms of player positions, Hero Moto CorpCorporation, Yamaha Motors and Suzuki Motors Corporation share the top three slotsin the world twowheeler market. The table below shows the production and salesfigures of motorcycles and scooters in Japan during the past decade More than 50% of the production in Japan is exported out of the country. This scenario contrasts

directlywith the Indian scenario. In India, only about 15% of the production in FY11 wereexportedThe Asian continent is the largest user of two-wheelers in the world. This is due to poor road infrastructure and low per capita income, restrictive policy on car industry.The technology for two-wheelers is not as well developed as for car industry. This isdue to oligopoly between top five players in the segment, compared to thirtymanufacturers in the car industry

1. Enhancing quality of life The Hero Moto Corp group is committed to creating a better quality of life for peopleeverywhere and to furthering the interest of the society by being a responsiblecorporate citizen. 2. Creating Happiness We will bring happiness into every home, offering high consumer durable vehicles ataffordable prices, and comfort. 3. Achieving progress We will pursue innovative technologies in the field of customer care vehicles andenergy, create product and services that will improve to quality of life, realize thegoals of the world community and protect the environment 4. Sustaining growth We will be a source of pride to our business associates by ensuring mutual prosperityand growth through the implementation of forward looking corporate strategies aimedat identifying opportunities and responding intelligently to dynamics of change.5.Pursuing ExcellenceWe will provide a conducive environment for enabling our employees to developtheir potential and make a significant contribution to the group success. PLACEMENT OF HERO MOTO CORP Hero Moto Corp Limited sells the motorcycle through a widely spread all India networks of over 450 of dealers. The motorcycle can be serviced at the authorized dealers or SSPs(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, thecompany 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 threeSSS 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 S-Spares)-12The company has developed a unique distribution network, which has given it a distinctivecompetitive 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 appointeddealers in many of these areas, after seeing the potential. The companys major thrust is theeasy 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.Presently the company is having 8 regional offices in the country. The regional officesconstantly assist these offices as a kind of linkage between the company and the dealer andthe dealers. The sales and the marketing personals at the regional offices are trained andencourage maintaining a cordial relationship with various dealers on the basis of trust andunderstanding. The companys service engineer and the other sales staff supervise all thefacilities at the dealer and the service outlet from planning the layout to the errection of thespecially designed benches and the tools. Infact all the possible efforts are made by thecompany 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 toassist them in the delivery of vehicle. From the factory and within the factory premises, thecompany has a good fleet of trucks and trailers. The company to deliver the vehicle to thedealers showroom in the gactory fresh condition uses these trucks and trailers. The cargosare loaded in the trucks and the trailers and they are delivered at the stockyards of thedealers in whichever part of the country they may be located. So the company in this waydelivers the motorbikes in the fresh factory conditions. By the time the bike reaches our dealers they might have done hardly a coupler of kilometers. The company believes themarketing efforts should go beyond ensuring product availability.The focus is therefore on a vast distribution network. In order to ensure the customers a better quality service at the various stations, the company mounts an effective training porograme in which all the mechanic, supervisory staff and the other senior staff personnel participate.The company is also planning to set up some of the fully equipped express authorizedhighway. In these highways, one would see a Hero Moto Corp dealer every 15-25KMS.This concept is thought by the company with a view to provide good after salesservices to the customer. This exercise will also check the company to check the use of spurious products, which ultimately spoil the bike.

The company has a dream to increase this figure of 458 dealers to 650 by the end of 2003and increase the figure of 256 service stations to 350 by the end of the year 2003.Thecompany is going by an expansion process.The company is perhaps the second company after Maruti Udyog Limited to implement afactory fresh concept. The company is the only company in the two-wheeler segmenthaving so much of vast distribution network. Hero Moto Corp will be adding 25 moredealers and 50service stations to build a network of 575 dealership-cum-service points(including 400 dealerships) across the country.The level of investment in an automated Hero Moto Corp service station is expected to bearound 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 provide bill discounting through our dealers. Consumer Finance: In order to focus onorganized 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 segmentsand product opportunities along with sensitivity to changing customer needs, form the coreof Hero's marketing strategy and philosophy. At Hero we essentially have a completelycustomer-driven approach. A nation-wide dealer network comprising of over 3,500 bicycledealers, 350 dealers for mopeds and 225 franchise holders for motorcycles, ensuresconvenient access to the Group's products across the country.With a deep sense of belonging to the Hero fraternity, the Group's dealer network hascatalysed growth and acted as a strong bridge between the customers and the Group.Conventionally, very few Indian bicycle manufacturers were interested in exports.However, the Hero Group's foray into the overseas markets pioneered Indian exports in the bicycle segment as early as 1963. It was a move prompted primarily by the need to beattuned to the global marketplace.While initial exports were restricted to Africa and the Middle East, today more than 50 percent of the Group's bicycle exports meet the demands of sophisticated markets in Europeand America. This is primarily because of appropriate product development and excellentquality that Hero offers. The Group has undertaken a steady upgradation of technologiesand there has been diversifications and setting up of newer establishments to meet stringentinternational 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 consumer to tryand occupy other segments of the motorbike market and therefore the new productlaunches from Hero Moto Corp in the last three year have been in this direction. Thecompany has also upgraded some of its bikes to stay in contention

and to meet Euroemission norms. The new underlining theme for the company One for everyone has ledto the launching of new products, which are as follows: Street Smart: Hero Moto Corp introduced its Street Smart in 1997. The company whowere 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 bikewas built in such a way that it resembled more like a scooters, than a motorcycle, butactually 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 Ambition Hero shifted its focus from catering to the fuel efficient consciousconsumer to try and occupy other segments of the motorbike market and therefore the new product launches from Hero Moto Corp in the last three year have been in this direction. The company has also upgraded some of its bikes to stay in contention and to meet Euro emission norms. The new underlining theme for the company One for everyone has led to the launching of new products With the launch of new motorbikes and various other motorbikes in the pipeline, Hero Moto Corps strategy is 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

MotoCorp. Necessarily the pricing policy is completely a blend of two strategies 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 segment that is in the process of passing on the whole benefit of cost advantageachieved 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 been changed except the budgets except once in APRIL 2011,when the companystarted off with their celebration offer, and thus decided to sanctioned a discountand curtail on every Model Rs 1001\-. The company is surely in a business of 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 qualityrather than cheap products.Well Hero Moto Corp has bikes at different price point but there is one commonthing 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 efficiencyof the bikes is much better than its competitors the different price points for HeroMotors Limited are : NAMEPRICEDawn ------------------- 32,000Splendor ---------------41,000Passion ---------------- 44,000Cbz--------------------- 52,000-60,000Thus we find that HML has bikes for every one for entry level customers they havedawn which is a no frill attached product whose emphasis is on mileage with performance .And for customers who like to have bike which is good at performanceand with descent looks they have Splendor which is their fastest selling bike and account for half of the total sales. Customers who are looking for style with performance can go for Passion which is a huge success among the urban class as it is priced little bit higher than splendor and the looks of the bike are astounding. For 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 tryingto introduce new models and they are trying to introduce models at the premiumsegment as it has high margins and the company feels that its the segment which iswill grow in the near future as the income of people will increase with the change of life styles .HML also intend to introduce few models which are economical in natureas they this segment provides the volumes to the company. Hero Moto Corp stillwants to charge a price of premium 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-- HeroMoto Corp cares for your safety--invited all Hero Moto Corp owners to attend theRide Safe programme on October 27, 2011 at Delhi's India Gate lawns. This was thefirst phase of the programme, where three instructors from Japan demonstratedtechniques 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.Promotion in this sector cannot be like that in the Fast Moving Auto pats(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 reputedadvertising agencies like Reddifuusion, Lintas, sachi & Sachi and others.The company has also signed a kind of agreement with two celebrities just now to betheir brand ambassadors. Hero Moto Corp, a leading manufacturer of motorcycles,has roped in film actor Hrithik Roshan and captain of Indian Cricket team SouravGanguly as its brand ambassadors for three years till 2003.They would endorse the company products, attend corporate and brand events andhelp promote its "we care" campaign comprising safety riding, environment, andfriendliness.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.Cumulative sales jumped up by 41.58 per cent to 5.72 lakhs units during April-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 helmetand other riding equipmentAnd as bike handling requires knowhow, skill, and rigorous mental conditioning, wehave put together certain safety tips and suggestions that will enhance the ridingcomfort. 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 cent from Rs 41 crore in 1999-2000. Apart from concentrating on mainstreamSplendor-- the world's largest selling bike-- and upscale CBZ motorcycles, Hero MotoCorp has identified ``soft areas'' like services and spares parts for the purpose of intense communication. The creative account of Hero Moto Corp rest with big nameslike Hindustan Thompson Association, Lintas, Sachi and Sachi and so on. Hero MotoCorp

is also planning a major campaign to re-launch the restyled step-thru StreetSmart. While customer references-- and not media strategy-- are expected to supportthe CD brand sales, Hero Moto Corp will look at social areas -- 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 communityservices, safety and services programmes, tree-plantations 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 giveriding tips to bike owners SPORTS & ENTERTAINMENT In sports promotions, Hero Moto Corp will stickto cricket (following titlesponsorship of the World Cup last year, it has signed a three-year contract for Hero-Hero-Salve Challenger Trophy) andgolf (it will continue with Hero-Hero MastersGolf).Moreover, after a successful association with movies-- last year it signed Pyar MeinKabhi Kabhi starring Dino M and Twinkle-- Hero Moto Corp is in theprocess of identifying title sponsorships of youth-centric movies. Says Sobti, In terms of mediaexposure, we are looking at sports, moviesand news. Niche channels are also worth putting your money on.'' For theCBZ, this year it is planning to run commercials inyouth channels like MTV;Discovery and Star Movies.In sports promotions, Hero Moto Corp will stick to cricket, it has signed a three-year contract for Hero-Hero-Salve Challenger Trophy) and golf (it will continue withHero-Hero Masters Golf). Moreover, after a successful association with movies-- lastyear it signed Pyar Mein Kabhi Kabhi starring Dino M and Twinkle-- Hero MotoCorp is in the process of identifying title sponsorships of youth-centric movies. Interms of media exposure, the company is looking at sports, movies, and news. For theCBZ Motorcycle, this year it is planning to run commercials in youth channels likeMTV; Discovery and Star Movies. The Target: Services will be a major differentiator,'' says Sobti.``The campaignswill highlight the high level of services and automatedfacilities at our dealerships.''Hero Moto Corp is expecting a 30-35 per centgrowth in spare parts revenue, whichaccounted for Rs 100 crore in 1999-2000.In the new fiscal, Hero Moto Corp is aimingto take the sales of Splendor from40,000 a month to 50,000 a month; CBZ from 4,500a month to 5,000; and a10-15 per cent growth in CD and CD-SS brands up from 25,000 a month now. There-launched step-thru Street Smart is expected to account for around25,000-30,000 in the first year.Services will be and is the differentiator. The campaigns will highlight the high levelof services and automated facilities at the companys dealerships. Hero Moto Corp isexpecting a 30-35 per cent growth in spare parts revenue, which accounted for Rs 100crore in 1999-2000.In the new fiscal, Hero Moto Corp is aiming to take the sales of Splendor from40, 000 a month

to 50,000 a month; CBZ from 4,500 a month to 5,000;and 10-15 per cent growth in CD 100 and CD100-SS brands up from 25,000 a monthnow. Supporting all of the Hero Moto Corp's growth projections are amulet-prongedstrategy including a thrust on a customer relationship programme, major increase inadvertising and promotion (A&P) spending, expansion of dealership network, and afocus on organized consumer financing. DEALERSHIP EXPANSION Hero Moto Corp will add 25 more dealers and 50service stations to build a network of 575 dealership-cum-service points(including 400 dealerships) across the country.The level of investment in an automated Hero Moto Corp service station isexpectedto be around Rs 10 lakh, apart from land and building. No dealerhas any problem inexpanding business,'' says Sobti. We've tied up withCitibank and Centurion to provide bill discounting through our dealers.''Consumer Finance: In order to focus onorganised consumer financing, HeroHero tied up with Tata Finance a week ago. Thisis Hero Moto Corp's secondtie-up following Centurion, which is accounting for around 3,000 bikes a month through 100 dealerships.We've got a good internal rate (based on IRM), which is standard acrossthe country,''says Sobti. ``These finance companies bring refreshinglycustomer-friendly focus toour organisation.''With Tata Finance, Hero-Hero's reach will be extended to over 150dealerships.Also, Tata Finance is expected to add 2,000 bikes a month. Presently, consumefinancing, including non-organised financing, contributes around 20,000 Hero MotoCorp bikes a month. Gauging Consumer: Hero Moto Corp is chalking out acustomer relationship programme, which is expected to be established in the nextthree years. We're discussing with Result McCann,'' says Sobti.The programme will initially attempt at building relationships with Hero Moto Corp'stop three to five lakh owners, out of its customer base of three million.

SALES PROMOTIONS Hero Moto Corp regularly has promotions running for its dealers as well as customersin order to ensure that there is a interest among the target customers abut the companyand its products. Normally Company participates in road shows, Sponsors collegefestivals, promotes eco friendly initiatives, Have festive Season offers, and sometimes price discounts to attract the attention of the people. These promotions are targetedmainly on youngsters as they are the primary buyers of bikes.The company launches financial schemes as Zero % finance schemes in collaborationwith different banks so that customers can pick bikes in easy installments. The effectof these promotions can be understood from the fact that 35 % of bikes are soldthrough this medium.

INTRODUCTION OF MARKET RESEACH Marketing is a restless, changing dynamic field, since 1920 many important anddramatic changes have taken place in marketing. Thousands of new products,including those of entire new industries such as automobiles, electronic andcomputers, textiles, footwear etc. have appeared on the market.Though al these occur through a gradual procedure of change but pronounced shift inthe orientation of times from production to marketing moreover, the role of marketingitself has been changing. The various crises of the 1970s material and energyshortage, inflation, economic stagnation, high unemployment, dying industries haveforced the marketing executives to assume a wide range of responsibilities that havegrown in complexities.Due to the many challenges offered by the environment, the companies executives are becoming more driven in their strategy decision making for making sound marketingdecisions in response to this requirement of formalized means of acquiring manyways has reached a stage of maturity i.e, marketing research.Market research has become a great tool for these companies to get the feedback andformulate strategies accordingly in todays eager to know. What consumer perceivesabout various brands for the perfect selection of target market. In an era wherecompetitive pressures have make the cost of failure prohibitive, research has becomecrucial in getting the market plan right. As the project was globalization of HeroMoto Corp I found that the company is making its marketing mix strategies byconsidering the consumer at the central point because, now a days, the consumer has become more aware and is no more a novice. Thats why marketing research has become an important tool in the hand of marketer to understand the versatile nature of ever changing consumer behavior as depicted by the marketing research, as refined byAmerican Marketing Association.Is the function which links the consumer, customer and public to the marketer through the information used to identify and refined marketing opportunities and problems, generate, refine and evaluate marketing actions: monitor marketing performance and improve understanding of marketing as a process.Marketing research specifies the information required to address these issues designsthe method for collecting information managers and implements the data collection process, analysis the results and communicates the finding and their implications. ADVERTISING The advertising includes both print and television media. The company uses theservices of Lintas, Sachi, and Sachi but Hindustan Thompson Association deals mainof the advertising. Besides of giving the commercial advertising the company alsoreleases the advertisement, which are of public interest and especially the companyreleases the social advertising as to how to go about the safe driving. The companykeeps on sponsoring different Programes and various kinds of games like thecompany every year sponsors Golf Championship. c The company has also recentlydecided to increase their adverting budget for the current year as they have to releasemore advertisements in public interest and the company has to re-launch

the StreetSmart model once again which was a tremendous failure in the early stager of itslaunch.Sale Promotion-The company does sale promotion for both dealers and the customers.The company is currently offering the promotion to their customers as they areoffering a discount of 1001.This discount is the company sanctioned discount and thedealers may also offer some kind of discount due to competition to attract customersand to increase the sale figures. The company also offers a kind of promotion to thedealers; The Company is having a slab system as a tool for promotion to the dealer. Advertising & Promotion: Hero Moto Corp is enhancing the A&P budget by around 35 per cent from Rs 41crore in 2010-2011. Apart from concentrating on mainstream Splendor-- the world'slargest selling bike-- and upscale CBZ motorcycles, Hero Moto Corp has identified``soft areas'' like services and spares parts for the purpose of intense communication.While customer references-- and not media strategy-- are expected to support the CD brand sales, Hero Moto Corp will look at social areas -- like civic issues, associationwith NGOs, contribution to greener causes-- for corporate communications.The corporate campaign will be largely complemented by onground initiatives under the umbrella brand of ``We Care'', incorporating activities in the arena of communityservices, safety and services programmes, treeplantations and environmental-friendly projects.In line with Hero's worldwide, safety riding programme, this fiscal Hero Moto Corpwill take the riding programme-- where trained personnel will give riding tips to bikeowners-- to over 100 dealerships across 90 towns. PERSONAL SELLINGAs a part of sales promotion, the company also does personal selling to the corporatesector. This is done in case of institutional selling. In the beginning only the CSDcanteens were included but now even Multi National Companies also form a part of the institutional sellingHeros corporate week-The week in December 2001 was observed as the corporateweek. This week was observed in the year 201 to spread awareness among thecorporate employees about the company and its range of products. In this week various vendors participated as well as various dealers participated. This platform wasalso used as making and building more cordial relations among the employees and thedealers. CHANNEL OF DISTRIBUTION IN HERO MOTO CORP Hero Moto Corp continues to have the same policy of directly approaching thedealers. However the company has made some changes in the dealershiprequirements. The company has now divided its into three categories, A, B and Cdepending upon the status of the town. Hero Moto Corp has made some regulationsand its dealers are bound to fulfil specific requirements for their showroom andworkshops in terms of area. The company has also started focusing

on the ruralmarketing such as Agartala (Tripura), Tinsukia (Assam) and Bhagalpur (Bihar). Thecompany has also increased the number of dealers from 350to 400. Distribution Channels -Hero Moto Corp has very strong Distribution channel in India. Hero Moto Corpdistributions their through Regional officer, Authorized dealers Etc.

HERO MOTO CORP IN INDIAN HAS 3500 AUTHORISED DEALER Criteria for selection of distributions; Financial position to the distributors Goodwill Situation of show room Past record Experience Promotion a)Sale locating customers Hero Moto Corp regularly has promotions running for its dealers as well ascustomers in order to ensure that there is a interest among the target customers abutthe company and its products. Normally Company participates in road shows,Sponsors college festivals , promotes eco friendly initiatives ,Have festive Seasonoffers , and sometimes price discounts to attract the attention of the people . These promotions are targeted mainly on youngsters as they are the primary buyers of bikes.The company launches financial schemes as Zero % finance schemes in collaborationwith different banks so that customers can pick bikes in easy installments . The effectof these promotions can be understood from the fact that 35 % of bikes are soldthrough this medium.

b)Qualifying customers "We are happy with our financial performance. It gives immense joy to see this kindof 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 partnersHero Moto Corp Co for their continuous support." Sales Performance Hero Moto Corp reports leadership performance with 50 % net profit in q2, 1011defies industry trend with turnover (net sales & other operating income), at rs. 3202crore; ebidta at 13.58 per centAug09 Aug 10 fy 09-10 fy 10-11 Total turnover (Net sales & Other Operating income)Rs 3202 crores, growth of 35.6 per cent Net profit after tax at Rs 306.30 crores, growth of 50 per cent EBIDTA margin for the quarter 13.58 per cent Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent Total sales for H1 stands at 18,66,349, growth of 19.7 per cent Over 55 per cent share in domestic motorcycle market Launches first-of-its kind music video to celebrate 25 years of Hero Moto Corp New Delhi, October 21, 2008: Hero Moto Corp (HML), the world's largest two-wheeler company for seven consecutive years, today firmly reiterated its undisputedleadership in the domestic two-wheeler market with impressive bottom line growthfor 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 Moto Corp's profit after tax in the corresponding period last fiscal (July - Sept,2010-11) stood at Rs 204.33 crore.Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, agrowth of 35.6 per cent over Rs 2361 crore recorded in the corresponding periodlast fiscal. The company has recorded an EBIDTA margin of 13.58 per cent in thequarter. 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-industrytop line growth. After posting a growth 11.38 per cent in the first quarter, thecompany kicked off the second quarter with a 39.8 per cent growth in sales in themonth of July, and followed up with 26.8 per cent growth in August and 22.4 per cent in September. Hero Moto Corp consistently keeps growing its share in thedomestic motorcycle market, and currently enjoys over 55 per cent share.Hero Moto Corp's cumulative sales for the second quarter (Q2) this FY stands at9,72,095 units - a growth of 28.5 per cent over Q2 last FY (2009-10). Thecumulative sales for the first six months (H1) stands at 18, 66,339 units of two-wheelers compared to 15, 59,486 units sold in H1 in the last FY reflecting aconsistent 19.7 per cent growth in cumulative sales.Dr. Brij Mohan Lall, Chairman, Hero Moto Corp, said "We are happy with our financial performance. It gives immense joy to see this kind of results in the 25thyear of our company. I wish to thank all our stakeholders customers, associates, dealer

friends, ancillaries and also our joint venture partners Hero Moto Corp Co for their continuous support."Mr. Pawan Munjal, MD & CEO, Hero Moto Corp., said "Our numbers speak for themselves. Even in this volatile and competitive environment, our top linecontinues to outpace the industry growth, our market share is at an all time high, andthe financial balance sheet is a delight all the factors which form the hallmark of aresilient company with cutting-edge management. We will continue to keepinnovating 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 pricesmovement, and other factors such as inflation, interest rate scenario and availabilityof retail finance. These factors will play a crucial role in the industry growth in thesubsequent quarters," he added.Hero Moto Corp has already rolled out its festive season initiatives, with the launchof four new models the allnew "Passion Pro" and three refreshes of its existingmodels - new CBZ X-treme, a selfstart version of Splendor NXG and the refreshedPleasure. During the coming months, the company will further augment its product portfolio with new launches across segments.Key Hero Moto Corp brands continue to drive strong volumes across segments -CD Deluxe in entry segment, Glamour, the new Splendor NXG, Splendor + andPassion Plus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the premium segment.Celebrating its 25th year, Hero Moto Corp released an innovative music video inthe month of September. Titled " Hero Moto Corp Dhak Dhak Go", and involvingas many as eight brand ambassadors of Hero Moto Corp, the music video has beenreceiving rave reviews.Hero Moto Corp recently won two very coveted awards - "The Most preferredBrand of two-wheelers" award at the recent CNBC Awaaz Consumer Awards 2010,and the "NDTV Profit Business Leadership Award".Hero Moto Corp closes calendar year 2007 with sales of over 33 lakh bikesHero Moto Corp consolidates market leadership with impressive growth of 15% inMarch10 Hero Moto Corp Continues Growth Momentum With 9.5 Per Cent Increase in MaySalesHero Moto Corp Continues To Consolidate Market Leadership With 27 Per CentGrowth In August SalesHero Moto Corp Net Profit Zooms 31% To Rs 275 Crore In Q3 (Fy 2010-11)Hero Moto Corp passes on excise duty cut benefit to customersHero Moto Corp posts record 6 lakh-plus units in retail sales in October 2010Hero Moto Corps positive performance continues in Nov 10Hero Moto Corps September 08 sales jump 22 per centHero Moto Corps strong sales performance continues into 2010Reports 13% growth in cumulative sales in apr-nov2010Hero Moto Corp closes calendar year 2007 with sales of over 33 lakh bikes New Delhi, Tuesday, April 21, 2010: Recap of year 2008 Slew of launches across various segments this calendar year Multi-focal strategy leading to betterthan-industry performance and gain inmarket share Doubled volume and share in the premium segment Consolidated over 50 per cent share in domestic motorcycle market New Delhi, January 2, 2011: Hero Moto Corp (HML), the worlds largest twowheeler manufacturer, today reported cumulative sales of 33, 09,051 units of twowheelers for the period JanuaryDecember 2010. The companys cumulative salesfor the calendar year 2009 was 32, 53,229. This achievement is significant in

viewof the prevailing slow down of the two wheeler industry.For the month of December 2007, HML reported sales of 240,532 units of two-wheelers. The companys sales for the corresponding period last year were 252,462units.The better than industry performance of HML through 2010 has been possible dueto the companys multi-focal strategy of bringing in new products across segments,supporting them with extensive 360 degrees communication, leveraging propertiessuch as cricket and entertainment for brand building and augmenting its distributionnetwork. As a result, Hero Moto Corps share in the domestic motorcycle markethas grown to upward of 50 per cent.Year 2007 saw Hero Moto Corp launch new models across segments. The companymore than doubled its volume and share in the premium segment this year, with the new all-muscle and macho Hunk, and the sporty and stylish CBZ X-treme bothdoing very well. New 100cc bike Splendor NXG, refreshed Pleasure, new Super Splendor, refreshedPassion Plus, were other additions to Hero Moto Corps product portfolio in 2010.The company crossed the twenty million cumulative sales mark this year andlaunched the special edition Splendor Plus to mark the occasion. In the month of December, continuing with its engagement with youth, Hero Moto Corp broughtthe legendary rock band Scorpions to India, for performances in Mumbai andBangalore as part of the bands Humanity World Tour 2009-10. This came closeon the hills of the very popular Hero Moto Corp Campus Rock Idols, a nationwidecontest of amateur rock bands that culminated into a grand finale in Delhi in the firstweek of December.Hero Moto Corp consolidates market leadership with impressive growth of 15% inMarch08For fy 2009-10, Hero Moto Corp overtakes previous fiscals sales tally, even asdomestic motorcycle industry declines by more than 10 % New Delhi, Tuesday, April 21, 2010: Achievements and Highlights for FY 0-08o Defying the industry trend, Hero Moto Corp achieved sales of 33,37,142 units of two-wheelers, thereby consolidating leadership in domestic motorcycles marketwith more than 52 per cent market share.o Hero Moto Corp retained the coveted position of 'World's No 1 two-wheeler company' on unit sales by a single company during calendar year 2007 for theseventh year in a row.o Crossed half a million retail sales in the festive season in 2009, and achievedlandmark cumulative sales of twenty million bikes in course of 2009. New Delhi, March 31, 2010: Hero Moto Corp (HML), the worlds largest twowheeler manufacturer, further consolidated its undisputed market leadership,reporting impressive sales numbers for the month of March. Once again, defying theindustry trend, the company sold 3,20,594 units of two-wheelers in the month, agrowth of 15 per cent. Hero Moto Corp had sold 277,915 units of twowheelers inMarch 2011.The companys total sales for the financial year 2009-10 stand at 33,37,142 two-wheelers, as compared to 33,36,756 units for the previous financial year (2007-08).

This is significant in view of the severe slowdown that the domestic two-wheeler industry is going through for the past more than a year.Mr. Pawan Munjal, Managing

Director, Hero Moto Corp said, The year 2009-10has seen a leadership performance from us. Despite the industry slowdown, we have been able to manage positive growth thereby taking our share in the domesticmotorcycle market upward of 52 per cent. At the end of the financial year, I woulddefinitely like to thank our millions of customers across the country, who havemade it possible. We will continue to focus on our customers and they can surelylook forward to many more launches and various initiatives in the coming year.HMLs good run through the industry slump in 2007 has been possible due to thecompanys multi-focal strategy of bringing in new models and variants acrosssegments, supporting them with innovative communication across media,leveraging properties such as cricket and entertainment for brand building andaugmenting its distribution network.Hero Moto Corp also recently associated itself with the Indian Premier League(IPL) as a partner and is also the official sponsor of the Delhi Daredevils (DelhisIPL Team).Fiscal 200910 saw Hero Moto Corp launch new models across segments. Thecompany more than doubled its volume and share in the premium segment this year,with the new all-muscle and macho Hunk, and the sporty and stylish CBZ X-treme both doing very well. Other new launches such as Splendor NXG, and refreshes of successful models including Pleasure, Super Splendor, and Passion Plus, wereadded to Hero Moto Corp s product portfolio in the FY 07-08.The company also crossed the landmark 20 million cumulative sales during thecourse of year.Hero Moto Corp continues growth momentum with 9.5 per cent increase in maysales New launches such as the refreshed splendor nxg & hunk driving volumes inrespective segments New Delhi, Tuesday, April 21, 2009: New Delhi, June 1, 2008: Carrying on itsimpressive growth momentum in the new financial year (2008-09), (HML), theworlds largest two-wheeler manufacturer for seven consecutive years, todayreported a 9.5 per cent growth in its sales in May 2008.

Hero Moto Corp sold 3,12,317 units of two-wheelers in May 2008, as compared to2,85,109 units in the corresponding month last year. This comes close on the heelsof a nine per cent growth the company had reported in the month of April with salesof 2,86,252 units of two-wheelers. Thus Hero Moto Corp has already clocked atotal sales of 5,98,569 units of two-wheelers in this financial year.According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero MotoCorp ., Our recent launches such as the refreshed Splendor NXG and the 150ccHunk have been driving volumes in their respective segments. While Hunk hascontributed largely to doubling our volume and share in the premium segment, therefreshed Splendor NXG has been driving the volumes in the deluxe segment. Our new campaign for Splendor NXG is currently on air on all mainline TV channels.We continue our strategy of brand building, and we will continue to utilize our various properties in the field of cricket and youth entertainment towards this end.We have carried forward our commitment to the promotion of cricket by partneringthe highly-

successful Indian Premier League (IPL), as well as being the officialteam sponsor of the Delhi Daredevils.Hero Moto Corp was bestowed the Enterprise Excellence Award 2007 by theIndian Institution of Industrial Engineering (IIIE) at an awards function held in Goain the month of May.Hero Moto Corp Continues To Consolidate Market Leadership With 27 Per CentGrowth In August Sales New Delhi, Tuesday, April 21, 2009: Reports robust sales of 305,516 units duringthe month Cumulative sales in April August 08 grows by 19 per cent New Delhi, September 1, 2008: Hero Moto Corp (HML), the worlds largest two-wheeler manufacturer, further consolidated its leadership in the domesticmotorcycle market, with a robust 26.8 per cent growth in sales for the month of August 2008. The company sold 305,516 units of two-wheelers in August 2008,compared to 240,875 units in the corresponding month last year.With this, Hero Moto Corp s cumulative sales in this financial year so far (April-August 2008) stands at 14,81,077 units as against 12,44,919 units in thecorresponding period last year reflecting a 19 per cent growth in cumulative sales.

This carries forward the companys positive growth trajectory since the beginningof this financial year (2008-09), further augmenting its more than 55 per cent sharein the domestic motorcycle market.According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero MotoCorp , Our strategy is yielding results. The strategy hinges on creating winning brands across segments, investing in brand building, exploring untapped markets inrural and upcountry areas while consolidating urban presence and rapidly expandingour network. However, the industry continues to face uncertainty on account of highinterest 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 Moto Corp brands continue to drive strong volumes across segments -CD Deluxe in entry segment, Glamour, the new Splendor NXG, Splendor + andPassion Plus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the premium segment.Hero Moto Corps scooter Pleasure has also been growing strongly, with more than12,000 units being sold in August this year.Hero Moto Corp net profit zooms 31% to rs 275 crore in q3 (fy 2007-2008)Reports turnover of rs. 2795 crore records ebidta of 13.95% New Delhi, Tuesday, April 21, 2009: Q3 HighlightsCorporate performance: Consolidated over 50% share in the domestic motorcyclemarket 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-wheelersAchievements: Retained the coveted position of World No 1 two-wheeler company for theseventh consecutive year Crossed landmark sales of Two Crore bikes; celebrated the achievement withHero Moto Corp BIKE-A-THON- a nationwide marathon of Hero Moto Corp bikes under the Hero Moto Corp Country campaign New Launches: Launched two new models Hunk (150cc) & refreshed Splendor+ along with aSpecial Edition

 Doubled volume and share in the premium segment - currently own almost 20%share New Delhi, January 31, 2008: Hero Moto Corp . (HML), the worlds largest two-wheeler manufacturer, today reported 31% per cent growth in profit after tax (PAT)at Rs 275 crore for the third quarter (October-December) of this financial year (2007-08). Hero Moto Corps profit after tax in the corresponding period last fiscalstood at Rs 209.18 crore.Total Turnover (sales turnover plus other income, net of excise) grew to Rs 2795.17crores, a growth of 3.54 per cent over Rs 2699.63 crores recorded in thecorresponding period last fiscal. The company has recorded an EBIDTA margin of 13.95% in the quarter. The EBIDTA margin in the previous quarter (July-September07) was 12.39%.This strong financial performance comes close on the heels of the companys goodoverall sales even in the face of the prevailing slowdown in the two-wheeler industry. Hero Moto Corps cumulative total turnover for the first three quarters(AprilDecember 2007) of this financial year stood at Rs. 7673.43 crores.Hero Moto Corp's strategy for aggressive top line growth through new productlaunches, brand building initiatives backed by innovative communication hasresulted in market share gain across every segment. Indeed, Hero Moto Corps sharein domestic motorcycles market has been growing upward of 50 per cent, despitethe slowdown in the two-wheeler industry.According to Mr. Brijmohan Lall, Chairman, Hero Moto Corp., Our performanceduring the third quarter of this fiscal has been very encouraging considering thecurrent slowdown in the two-wheeler industry. We have been consistently reporting better-than-industry sales numbers, and it has also been reflected in our bottom line.We wish to thank all our customers and stakeholders for reposing their faith in our company and our products.Mr. Pawan Munjal, Managing Director & CEO, Hero Moto Corp . said, Given theindustry slowdown scenario, we are very enthused by our robust financial numbersfor the third quarter. However, this was not unexpected. We had undertaken somestrategic initiatives since the beginning of this fiscal, including a conscious effort torationalize costs across the board, and its results are now visible. Our bottom linehas 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 beable to further improve upon our financial results, he added. Hero Moto Corp Passes on Excise Duty Cut Benefit To Customers New Delhi, March 1, 2008: Passing on the excise duty cut benefit in Budget 2008 tocustomers, Hero Moto Corp (HML), the worlds largest manufacturer of motorcycles, today reduced prices on all its models, ranging from Rs1000/- to Rs2400/-.The company, which sold 265,431 units of two-wheelers in the month of February,reduced the price of Splendor+ by about Rs 1300/- (ex-showroom Delhi) and onKarizma by about Rs 2400/- (ex-showroom Delhi). Similarly, the price of its

best-selling 150cc bike Hunk has been reduced by about Rs 1800/- (exshowroomDelhi).Mr. Pawan Munjal, MD & CEO, HML, said Hero Moto Corp has taken the voiceof the customer to the government, and consequently the excise duty on two-wheelers has been reduced to 12 per cent from 16 per cent. This is a welcome move,and we are happy to pass on the entire benefit to customers. The reduction in exciseduty cut will enable us to draw more customers to our fold, but the basic factorscausing the industry slowdown still remain unattended. Credit financing has beenwithdrawn in some key markets, while interest rates on consumer loans also remainvery high. This credit squeeze continues to be the most critical factor adverselyimpacting industry growth, and we still dont see any indication from the banks andthe government to address this concern. For the industry to make a turnaround andget back on the path of growth, the government has to address these key issues. c)Contacting customer and making saleSales performance Hero Moto Corp reports leadership performance with 50 % net Total turnover (Net sales & Other Operating income)Rs 3202 crores, growth of 35.6 per cent Net profit after tax at Rs 306.30 crores, growth of 50 per cent EBIDTA margin for the quarter 13.58 per cent Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent Total sales for H1 stands at 18,66,349, growth of 19.7 per cent Over 55 per cent share in domestic motorcycle market Launches first-of-its kind music video to celebrate 25 years of Hero Moto Corp New Delhi, October 21, 2008: Hero Moto Corp (HML), the world's largest two-wheeler company for seven consecutive years, today firmly reiterated its undisputedleadership in the domestic two-wheeler market with impressive bottom line growthfor 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. HeroMoto Corp 's profit after tax in the corresponding period last fiscal (July - Sept, 2009-10) stood at Rs 204.33 crore.Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, a growthof 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. TheEBIDTA 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-industrytop line growth. After posting a growth 11.38 per cent in the first quarter, thecompany kicked off the second quarter with a 39.8 per cent growth in sales in themonth of July, and followed up with 26.8 per cent growth in August and 22.4 per centin September. Hero Moto Corp consistently keeps growing its share in the domesticmotorcycle market, and currently enjoys over 55 per cent share.Hero Moto Corp's cumulative sales for the second quarter (Q2) this FY stands at9,72,095 units - a growth of 28.5 per cent over Q2 last FY (2007-08). The cumulativesales for the first six months (H1) stands at 18, 66,339 units of two-wheelerscompared to 15, 59,486 units sold in H1

in the last FY reflecting a consistent 19.7 per cent growth in cumulative sales.Dr. Brij Mohan Lall, Chairman, Hero Moto Corp, 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 Hero Moto Corp Co for their continuous support."Mr. Pawan Munjal, MD & CEO, Hero Moto Corp., said "Our numbers speak for themselves. Even in this volatile and competitive environment, our top line continuesto outpace the industry growth, our market share is at an all time high, and thefinancial balance sheet is a delight all the factors which form the hallmark of aresilient 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 pricesmovement, 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 thesubsequent quarters," he added.Hero Moto Corp has already rolled out its festive season initiatives, with the launchof four new models the allnew "Passion Pro" and three refreshes of its existingmodels - new CBZ X-treme, a selfstart version of Splendor NXG and the refreshedPleasure. During the coming months, the company will further augment its product portfolio with new launches across segments.Key Hero Moto Corp brands continue to drive strong volumes across segments - CDDeluxe in entry segment, Glamour, the new Splendor NXG, Splendor + and PassionPlus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the premiumsegment.Celebrating its 25th year, Hero Moto Corp released an innovative music video in themonth of September. Titled " Hero Moto Corp Dhak Dhak Go", and involving asmany as eight brand ambassadors of Hero Moto Corp, the music video has beenreceiving rave reviews.Hero Moto Corp recently won two very coveted awards - "The Most preferred Brandof two-wheelers" award at the recent CNBC Awaaz Consumer Awards 2008, and the"NDTV Profit Business Leadership Award". d)Order filling In order to protect against fraudulent encashment, how can one incorporate the detailsof his bank account on his dividend warrant. What is the procedure that he shouldfollow?If one is holding shares in physical form, he should duly fill the request updation formfor bank mandate and sent the same to our R & ST Agent, M/s. Karvy ComputersharePrivate Limited. The Company will take on record such request complete in allrespect and incorporate the same on future dividend warrants. However, if one isholding the shares in electronic mode then such details needs to be furnished to therespective Depository Participant with whom one holds the demat account and not toHero Motors Limited or our R & ST Agent. e)Payment Collection

All elements of current assets are not equally liquid. Inventories are the mostilliquid of current assets. Also bank overdraft, cash credit & other short-term borrowings which are used as a means of financing current assets. These arerenewable & become due for payment at a particular point of time. Repaymentschedule for such working capital finance is not as short as it is for sundrycreditors. Even such financing arrangements may go year after year withincreasing level of cash credit & bank overdraft limits. So these short termliabilities are excluded from current liabilities while qualifying liquidity. Thelacuna of this approach is that debtors & advances may become more illiquid thaninventories.

COMPETITORS OF HERO MOTO CORP BAJAJ The Bajaj Group came into existence during the turmoil and the heady euphoria of India's freedom struggle. Jamnalal Bajaj, founder of the Bajaj Group, was aconfidante and disciple of Mahatma Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication, resourcefulness and determination to succeedwhich are characteristic of the Company today, are often traced back to its birthduring those long days of relentless devotion to a common cause.Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the ageof twentyseven. Putting the Nation before business, he devoted himself to the latter only after India achieved independence in 1947. But when he did so, he put his heartand soul into it. Within a short while, he not only consolidated the Group, but alsodiversified into various manufacturing activities, elevating the Group to the status itenjoys till this dayRahul Bajaj today heads the Group. He has been the Chief Executive Officer of Bajajsince 1968 and is recognized as one of the most outstanding business leaders in India.As dynamic and ambitious as his illustrious predecessors, he has been recognized for his achievements at various national and international forums. Bajaj is currentlyIndia's largest two and three-wheeler manufacturer and one of the biggest in theworld. Bajaj has long left behind its annual turnover of Rs.72 million (1968), tocurrently register an impressive figure of Rs.42.16 billion (US$ 936 million). TVs- Ltd: They have a vision of being a highly profitable and socially responsible, leadingmanufacturer of high value, environmentally friendly, lifetime personal transportation products for customers in global markets and to provide fulfillment and prosperity for employees, dealers and vendors Suzuki

TVS Suzuki broke out of the bottoming formation with a rise in volume and wentinto a major uptrend. The stock is well above its rising 30 WMA and its earlier intermediate bottoms, and hence, the major trend of the stock is up. The relativestrength line for the stock has moved past its zero line, indicating that the stock isoutperforming the indices. Investors ust hold on to the long positions in the stock while more long positions in the stock must be added after the next intermediatecorrection.The intermediate trend of the stock is still up and investors will have to wait for somemore time before the stock actually goes into an intermediate downtrend. Keep a closewatch at the stock and investors holding the stock must continue to do so. Tradingvolumes are less, and hence, investors must pick small quantities. LML LML is also in a major uptrend like the other stocks in this sector, as the stock moved past its earlier intermediate top and its 30 WMA in the current intermediate rise. Thestock is still in an intermediate uptrend and is currently moving sideways. It coulddrop into an intermediate downtrend on a close below 19. The breakout by the stock was not accompanied by a rise in volume and this is not a very bullish sign. Thus,investors must look at other stocks in this sector which are also in a major uptrendand are more stronger. The relative strength line has moved above its zero line andcould fall back if the stock goes into an intermediate downtrend. Investors mustalways pick up the strongest stocks in the strong sector, and hence, must avoid thisstock, even though it is in a major uptrend. KINETIC MOTORS Kinetic Engineering Ltd., founded in the year 1970, is the leading manufacturer andexporter of 2-wheelers. Born of the vision of the late Shri H. K. Firodia, KineticEngineering Ltd., it has produced useful, heart - winning products for over twodecades. KEL manufactures a wide range of Mopeds, Scooters and Motorcycles thatare very popular in the country and are well recognized for their fuel economy,quality and reliability.KEL has 3 manufacturing plants at Ahmednagar Pitampur (Indore) an Goregaon(Pune) with the capacity to manufacture 4 lakh vehicles per year. Their well endowedtechnologically advanced manufacturing set up have enabled them to reach highquality standards. The company also exports these vehicles to countries like USA,Canada, Sweden, Latin America, Denmark and the Middle EastAn agreement has recently been reached between Yamaha Motor Co., Ltd. (YMC)and its joint venture partner in India, Escorts Limited (Chairman and ManagingDirector: Mr. Rajan Nanda. Location: Faridabad, suburbs of New Delhi) under whichYMC will acquire all of the 26% of the stock presently held by Escorts Limited in the two companies' motorcycle manufacturing and marketing joint venture, YamahaMotor Escorts Ltd. (YMEL).The aims of this move to make Yamaha Motor Escorts a 100% YMC subsidiary are toincrease the overall speed of managerial and business decisions, to improve productdevelopment capabilities

and production efficiency, while also strengthening themarketing organization. Plans call for the change in the company's name and other procedures to be completed by the end of June.Ever since the establishment of the first technical assistance agreement between thetwo companies in 1985, YMC and Escorts Limited have built a cooperativerelationship dedicated to the manufacture and sales of Yamaha brand motorcycles inan environment of growing motorcycle demand in the Indian market. In November of 1995, the two companies established the joint venture company Escorts YamahaMotor Limited, based on a 50-50 capital investment. In June of 2005, that investmentratio was changed to 74% for YMC and 26% for Escorts Limited and YMC assumedmanagerial control of the company with the name being changed to YMEL andundertook numerous measures to build the company's motorcycle manufacturing andmarketing operations.In addition to YMC acquiring Escorts' 26% of YMEL stock, the company's name will be changed to Yamaha Motor India Private Limited (YMI) and concerted efforts will be made to heighten its competitiveness in the Indian market and promote the spreadof the Yamaha brand with target themes of developing products with greater appealand a distribution network that can respond more quickly to user needs.Furthermore, YMC will work to develop YMI as an exporter of business typemotorcycles to neighboring countries and other markets such as Africa and LatinAmerica, and also as a production base that can assume a variety of roles in Yamaha'sglobal manufacturing network.Presently, India's annual motorcycle demand has grown to exceed 3.8 million units,which makes it the second largest market in the world, with steady growth isanticipated for the future. Now that YMI has become a 100% YMC subsidiary, theintroduction of several new models is planned, and it is our goal to increase annual production to 350,000 units in the fiscal year 2005 and to 550,000 units by the fiscalyear 2010.

SWOT Analysis Strength i Promoters have a vast experience in the Detergent cake and Powder market and theyare well familiar with the variation in the demand pattern. ii. Company is financially and technically sound Weaknesses i. The operations of the company are sensitive to the changes introduced by theregulatory authorities from time to time which may affect the profitability of the company Opportunities i. Ever expanding domestic market

ii. Significant increase in demand of global Detergent/ Surfactants market Threats i. Increasing competition from sub-standard and unregistered Detergent companies. ii. Company may face competition from Local market and Job workers in Indian market.

DATA ANALYSIS For finding the result of Marketing Strategy in purchase of motor bike we have togo through the customers perception and attitude. As for example age group,house holds annual income and purchase. These things focus the Marketing Mix.Then we have to go in details of all factors of coaster of Marketing Strategy asfamily, gender, geographic location, social, cultural, income age, sex etc.consumer behaviour are quite different their prepurchase, purchase decision and post purchase behaviour. For different product consumer behaves in different way.For buying the motel motor bike consumer prefer look robustness, Mileage andcomfortable. Brand image of the products is very important. Finding through theconsumer survey through questionnaire as follows. Approximately 60% user are between the age group of 18 to 25, then 25-35.thus mostly the young prefer to riding the bike generation. Most of the customer are in the annual income group 60,000 to 1 lakh. Itmeans high income group mostly preferred four wheeler. Most of the customer between the age group of 25 to 35 use bike office going purpose and 18 to 25 for college going or maintain their fined circle Brand of the product most affect the behaviour of the consumer. Customer known about the brand mostly through T.V. and word of month.

Price a not effect the consumer it the quality, availability and after salesservices are good. In case of decision making friends, parents players an important role. Consumer buying decision affected by physical feature and technologicalfeature of the bike.

QUESTIONAIRE

APPENDICES QUESTIONNAIRE Motor bike is not a luxury it has become the necessity in 21 st century. I would liketake few minutes of your precious time, Just to know about your views for different bike. I assure you that your information will be confidential and itwould not be share by other organization. Name:Age:Sex:Occupation: 1.Which of the following best describe your age group?a) 14-18b) 18-25 c) 25 to 35d) above 352.What is the size of your family (Including children)?a) Single b) 2 to 3 c) 3-4 d) above 43.Which of the following best identifies you house hold annual income?a) Below 60,000 b) 60,000 to 1 Lakhc) 1 to 2 lakh d) Above 2 lakhs4.For which purpose you purchase the motorbike?a) College going b) Office goingc) Maintain friend circle d) Other purpose 5.Which of following companys motorbike do you have ?a) Bajaj b) HERO MOTO CORPc) Suzuki d) Yamahae) Any other

6.How come you know about that brand? (can make more than one)a) T.V. b) Newspaper c) Dealer effort d) World of mouthe) Internetf) Any other 7.Rate the

following in order of influence you purchase a bike?a) Brand image of the product b) Pricec) After sales serviced) Quality and feature of producte) Ease of availabilityf) Value for money8.Which option you prefer when you purchase a bike ?a) One time payment b) Financial optionc) Exchange offer d) Any other.9.Who was the decision maker in your purchase of motor bike?a) Parents b) Friends c) Yourself d) Spouse e) Other 10.Which physical features contributed most in you buying decision?a) Looks b) Body buildc) Style e) Robustness 11.What technological feature effected in your buying decision?a) Power economy mode b) Mileagec) Four stroke engined) Any other 12. From where did you purchase your bike?a) Authorized outlet b) Near by dealer c) Online d) Any other 13.Which brand has better after sales service?a) Bajaj Caliber b) Passionc) TVS victor d) Ambitione) LML Freedom f) Other.14.Are you satisfied with your decision?a) Highly satisfied b) Satisfiedc) Neither satisfied nor dissatisfiedd) Dissatisfied15.Which bike do your prefer for buying in future?a) Caliber b) TVS Victor c) Pulser d) Passione) Ambition f) LML Freedomg) Other

Hero Moto Corp has built leadership positions primarily due to its belief in thefollowing principles Understanding stakeholder (incl. International partners and customers) expectationsand delivering value for money Managing relationships Creating a Performanceculture Partnership Approach with ancillaries Efficient Current Asset ManagementAccepting and using ever-changing technology as a facilitator Strong quality and process orientation Results of Hero Moto Corp initiatives The Hero Moto Corp philosophy of empowering and training human capital, use of appropriate technologies, and constantly being close to the customer and with themaintaining a healthy work environment with the highest standards of ethics andcorporate governance has resulted in the Group companies through excelling in their chosen field through, impressive attitude year after year, leading to impressivefinancials and healthy returns to all stakeholders .Hero Moto Corp to finalise third unit location, investment soonTWO-WHEELER manufacturer Hero Moto Corp is close to finalising a location for its third manufacturing plant in the country. The company, which now has capacitiesof 2,40,000 units annually from its existing manufacturing facilities will shortlyannounce the location and investments that will go into the new manufacturingfacility, Mr Pawan Munjal, Managing Director, said here on Monday."We have been experiencing capacity constraints, especially after launching newmodels, and while we are in the process of continuously adding capacities the issuewill be resolved after our third facility is set up," Mr Munjal said.

"We expect to reachthe three-million level in this fiscal with our existing facilities," he added.The two-wheeler company is also in talks with joint venture partner Hero to make itsoperations a sourcing hub for the export markets, Mr Munjal said. "Hero hasmanufacturing and distribution presence across the world but we are convincing themto make us the sourcing hub for the 100, 125 and 150 cc range. There is a significantcost advantage in it and the talks are currently on about various possibilities," he said.The company's exports, largely to Sri Lanka, Bangladesh and Latin America, grewover 60 per cent in the last fiscal to 65,000 units and it is expecting to cross the100,000-mark this year. Mr Munjal, however, ruled out the possibility of setting upassembly operations to feed its export business.Hero Motors, meanwhile, is also gearing up for the launch of two other models, oneof them in the 150 cc power segment of the motorcycle market, in the current fiscal.Work is also under way on a range of new Quantum Core engines that Hero is nowdeveloping that will soon be deployed on its new vehicles, especially in the power range, said Mr Atul Sobti, Executive Director, Business Operations.Meanwhile, the company's new 125 cc Glamour model has already sold over 15,000units in the two weeks since its launch, according to Mr Sobti, who said that work ison to ramp up production in a phase, given the capacity constraints that it is currentlyexperiencing. "We expect to reach the level of 30,000 units/month six months fromnow," he said Hero Moto Corp sales up 34% Hero Moto Corp on Thursday reported a 34 per cent rise in sales in May at 3.03 lakhunits as against 2.26 lakh units in the same month last year. The sales in the domesticmarket stood at 2,93,758 units during May this year, while exports stood at 9,908units sales increased due to export and company is going globaly.

Passport to Customer Loyalty Last April Hero launched the Hero Moto Corp Passport, a program designed toincrease customer loyalty. Customers who sign up are issued "passports," and theyreceive points when purchasing parts or referring new customers. "This helps us ingetting to know our customers better," says Pawan Munjal. "We have 600,000members in the program, and we also organize events where they can meet sportsstars and film stars. This creates loyalty in our customers."But to create loyal customers, a company must first have loyal employees."Fortunately, Hero has a good name, Hero has a good name, so we attract very good people," says Brijmohan Lall, who at 79, still continues to put in a full day's work aschairman. "With our long experience we have created a friendly atmosphere. My door is never closed, so anyone can walk in at any time."As a reward for becoming the world's largest motorcycle manufacturer, the Munjalstook the managers (along with their wives) who had contributed most to this successon a vacation to Switzerland last

year. "We conducted a seminar on top of a Swissmountain to symbolize our success," says Brijmohan Lall. "We also invited a professor from Harvard University to come and give us a talk on how we must nowcompete and sustain ourselves at this new level."Hero Moto Corp's IT StrategyWith the Indian motorcycle market opening up to overseas competitors and morefierce domestic competition, Hero Moto Corp decided it needed to overhaul itsvarious computer systems and create a single integrated IT system. Rather thancontinue to use computers merely for data processing, it sought to use IT to integrate business operations such as product planning, materials resource planning, financialsand sales and distribution. It was also looking to automate its internal supply chain,reduce overall costs, and create a transparent information system that would helpmanagers make decisions more quickly. To do all this it teamed up with SAP in June2000 to implement the system, and went live in February 2001."Now we can look at the same information, when earlier we had three or four different versions, which didn't always match," says Pawan Munjal. "Now we (themanagers) can all look at the same costs, for example, because all the information isup there on the screen. Nothing is hidden, everything is transparent. So there are noarguments over figures now, which used to waste time and hold up decision-making."

There are improvements on the factory floor too, now that manufacturing has been brought into the new IT system. In the past there was no accurate way of checking theconsumption of raw materials and inventory in general. So excess stocks in someareas became an inevitability. "Now we know what should be there and what isthere," says Pawan Munjal. At the same time, defective parts and materials are nolonger accepted, forcing suppliers to upgrade their quality."The next step is to get dealers and suppliers online, so that orders can be takendirectly by the suppliers," says Pawan Munjal. This will eliminate any wastage that isstill left in our supply chain."In upcoming issues of the SAP 30th Anniversary Leadership Interview series, welearn how experience, innovation and vision are driving other major Asiancorporations to be leaders in their fields. CONCLUSION AND RECOMMENDATIONS, The motorcycle industry had a perceptible shift from a buyer market to the seller market with the variety of choices. Now the customer even has a plethora of choicesto choose the best-suited requirement. All the players, weather be it HML, Yamaha or any other will have to compete on the basis of many things like attributes, reliabilityand so on. There is no doubt in the fact that Hero Moto Corp Company rules themotorcycle industry and has a good brand name, but the company will certainly haveto initiate some efforts. The company has then highest market share in the motorcycleindustry and maintaining such a good share will pose a challenge to the company. Thecompany is doing very well in the business. According to me, no other company can beat this company in the years to come

because of its strong brand name in themarket. This company would be successful in the years to come as the company hasgood amount of brand loyal customers. When there is talk of bike, the first thing thatcomes to mind is Hero Moto Corp because of strong brand image. In our study themain emphasis was towards the marketing mix elements (Product, Place, Price andPromotion). The analysis is totally based on the marketing mix elements. Further for analyzing the market share of the company properly; a survey was conducted whichalso forms a part of the findings.The two-wheelers market has had a perceptible shift from a buyers market to a sellersmarket with a variety of choices. Players will have to compete on various fronts viz pricing, technology, product design, productivity, after sale service, marketing anddistribution. In the short term, market shares of individual manufacturers are going to be sensitive to capacity, product acceptance, pricing and competitive pressures fromother manufacturersThe segments, motorcycles have witnessed capacity additions in the last one-year andit will continue in the upcoming period as and when Hero opens a local subsidiary.Over this period, only the motorcycle segment is expected witness higher demand vis--vis supply, while the scooters and mopeds supply will outstrip demand.As incomes grow and people feel the need to own a private means of transport, salesof two-wheelers will rise. Penetration is expected to increase to approximately tomore than25% by 2010.The motorcycle segment will continue to lead the demand for two-wheelers in thecoming years. Motorcycle sales is expected to increase by 20%yoy as compared to 1% growth in the scooter market and 3% by moped sales respectively for the nexttwo-yearsThe four-stroke scooters will add new dimension to the two-wheeler segment in thecoming future. Perhaps, the moped segment will be the worst affected due to Y2K emission norms applicable from April 2002 as not many of the present modelsconfirm to the normsThe three-wheeler segment will witness 10%yoy growth for the next two years. Inspite of entry of Piaggio, Italy into the three-wheeler segment in the country, BajajAuto will continue to dominate the segment. In this segment, we would see playersshifting from diesel to cleaner fuels like CNG in line with norms set out by variousstate governments.On surveying Hero Moto Corp globalization, it was found that the competetion & price where preferred in the bike comparison with other company. Serviceman and businessman both like this Hero Moto Corp bike, Mileage,4-stroke,4-gear&11.0 BHP.Opinions are all most same. In my survey I found that there are only 05% bikeexports to outside India JOURNEY SO FAR Indian companies had relied heavily on their foreign counterparts for technicalsupport, design of the model etc., while they provided the distribution and branding inthe Indian market. Now that the international market for motorcycles is fairlydeveloped and consumers are well aware, most of these foreign manufacturers are planning to enter the market on their own. The inadequacy of the public transportationsystem, the upwardly mobile middle class, which has the disposable income and theintent to own a two-wheeler and the sheer size of the

Pakistan,bangladeshand srilankamarket is proving to be an attractive factor to many multinational companies. India'stwo-wheeler industry is the second largest market in the world after China. Hero MotoCorp, whose tie-up with Hero-Hero is going to expire soon, has already entered thefray with Hero-Activa. Others are also queuing up.Yamaha Corporation, which was operating in India through a joint venture withEscorts Group, had decided to call it quits in mid-2001 by buying off Escorts' 50 percent share in the joint venture. Yamaha now plans to tap the Indian market on itsown with models such as RX-135, RXZ, YBX125, YD125, and ACE. Its name has become fairly established while the joint venture had been in operation for twodecades. On its own now, Yamaha has started implementing its ambitious plans for the Indian market and has embarked on a challenge 21 project, a time-bound initiativethat is aimed at reorienting and revitalizing the entire Indian operations in order toachieve a competitive edge. Yamaha has set for itself the target of capturing 21 percent of motorcycle market by 2005. India is one of the few countries whereYamaha, the world's second largest motorcycle manufacturer operates a fully-ownedsubsidiary.

RECOMMENDATION There are no two opinions that the automobile industry is faring very well in theIndian market since the early 90s.However it can perform better in the market of it o The first recommendation is obviously about the customer care. Presently thecompany has a customer relation department but it has to be made stronger and more service provider to help the customers. o The distribution network should be made stronger so that the customers dontfeel dissatisfied for services, sales, and stocks. o This is a age of customer delight and the company should not forget thatcustomer is the king o Everywhere there is a game of production and volumes, the company that produces more can save more and prices could be made more competitively

o The company should always go for quality o The R & D base should be made stronger as the level of indigestion shouldcome down.After doing market research I would like to suggest or recommend to the Companythat there are certain out comes of research, which followed through the formal andinformal procedure during the research. Thus we are bound to draw the attention of Company to certain points which are ought to be perceived by the Company with fullcare.1.Publicity and advertisement should be broad, because competition is more.2.Size and weight of bike should be match with their C.C.3.company should follow world wide strategies for increasing their globalrevenue.4.Bike should have stepping facility. Which may help during critical situation.5. Company should provide promotional schemes to the customers.

6.All the protective parts of wheels should made of plastic and leg guard also bestrong.7.Now Company is required to recover the faith of customers towards the brandimage.8.Company should improve the mileage of the Bikes.9.Prices of the Bike must be set as it can be approved by major part of the population.10.Fuel tank portion can be changed. LIMITATIONS In my survey I found some limitations are as follows: Time was limited. Material on internet is very limited. Some customers were in hurry so they were not given proper opinion. Foreign data is not available on the net.

Bikes are exporting to very limited country

FUTURE PROSPECTS FUTURE Hero Moto Corp Is planning to launch bikes at a super Premium ranges i.e. 80,000INR just in order to show the technical expertise of the company in front of itscustomers. With competitors already in this segment Like Bajaj Eliminator we canaccept A cruiser bikes from them in this segment. In addition, the firm is also in the process of assessing the feasibility of introducing high-powered models from theHero stables as fully-built imported bikes. This is the first time after the major debacle of BMW's 645cc bike that the Hero group is now planning a foray into thelifestyle bike segment. BMW, in alliance with Hero Moto Corp, had introduced the premium bike at Rs 4.5 lakh. But an embarrassingly low demand saw the firmtrimming its tag to Rs 1.8 lakh. In addition, the firm is also planning to launch a newvolume bike, to be produced with an engine capacity between 100cc and 156cc, bySeptember 2002, Munjal said while unveiling its new basic 100cc bike Dawn. Pricedat Rs 37,855 (ex- showroom Delhi), Dawn would replac e its existing 100ccmotorcycle Joy, which was launched last year. The firm has also phased out its 100cc bike Sleek citing low volumes.

REFERENCE & BIBLIOGRAPHY 1.Phillip Litler Marketing management (Prentice-Hall of India Pvt.).2.Harper W. Bayd, Ralph West Fall, and Stanley F. Stasch Marketing research(AITBS Publisher 7 th ed. 2001).3.A.G. Sawyer and Davied J Howard, Journal of Marketing research 1999.4.consumer Behaviour by Leon G. Schiffman and Leslie Lazar Kanuk (Fifthedition)5.Research Methodology by C.R. Kothari (Second Edition)6.Business world and Business India magazine.7.Auto India Magazine for two and four wheeler. INTERNET http://encyclopedia.thefreedictionary.com/Hero+ Herohttp://www.hero Hero.com/co_policy.htmhttp://www.hero

Hero.com/co_board_directors.htmhttp://www.cmsnl.com/news/ Hero-to-strengthenstructure-of-its-rdoperations_news245.htmlhttp://www.etalkindia.com/indian_automobiles_news_foru ms/new_variant_of_hero_ Hero_bikes_launchedglamour_fi_and_cd_deluxt3336.0.htmlhttp://www.cmsnl.com/search.phpwww@heromotorcycle.comwebsite of Hero Moto Corp bike.www@tvsuzuki.comwebsite of Suzuki motor bike.nvswaminathan@bajajauto,com