EXECUTIVE SUMMARY

Hero Moto Corp the Principal activities of the Company is manufacturing and
marketing of motorcycles and spare parts. The Company is a joint venture between
Hero 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 outstanding financial
results for the year 2010-11. Profit after tax (PAT) is Rs. 462.93 crore, a growth 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, the company achieved
a 48 per cent market share in the motorcycle category during the year; and 33 per cent
of the total two -wheeler market. The company recorded a cumulative 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 the
company 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 revenue
increased from Rs. 783 crore in 2008-09 to Rs. 4539 crore in 2010-11. PAT has
increased from Rs. 50 crore in 2008-09 to Rs. 463 crore in 2010-11. The total sales
has also increased from 2,68,931 motorcycles in 2010-11 to 14,25,302 motorcycles in
2010-11, with volume market share jumping from 27 per cent to 48 per cent in
motorcycles; and 9% to 33% in two-wheelers. Mr. Brijmohan Lall, Chairman and
Managing 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 like
to make special mention of the excellent support provided all through by our joint
venture partners Hero Moto Corp Company, and Hero Cycles Ltd. Our relationship
with 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 and
delight 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 the
launch of the most comprehensive Customer Relationship Programme, 'The Hero
Moto Corp Passport Programme'. Further, despite strong competition and pressures
on the economy as a whole, the company has improved operating profits significantly,
mainly because of cost rationalization, strong working capital management and
manufacturing efficiencies."He added, "We are committed to continue our lead, by
delivering even better value to the customers, in the year ahead. Accordingly, several
new and exciting product launches are lined up for 2008-09, and in the future. The
manufacturing facilities to support the customer demand would also be pro-actively
set 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 flown
in 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 and
consistent achievements. Last year they achieved the distinction of being No. 1 Joint
Venture of Hero Moto Corp Company worldwide; and this year achieved the unique
status of World No. 1 two wheeler companies. Our relationship has always been
strong and solid. We are proud of this achievement for the Hero Group, Hero Moto
Corp Company, and the Indo-Japanese co-operation. We would continue to provide all
the necessary support to Hero Moto Corp, for it to remain on the top".

TABLE OF CONTENTS
Sl.No.
1.

Topic
TITLE PAGE

Pages. No
i

2.

EXECUTIVE SUMMARY

Ii

3.

TABLE OF CONTENTS

Iii

4.

INTRODUCTION

1-2

5.

COMPANY PROFILE

2-7

6.

BRANDING STRATGIES AND PRODUCTS

8-26

7.

CONCLUSIONS & RECOMMENDATIONS

27-30

8.

REFERENCE & BIBLIOGRAPHY

31

INTRODUCTION
The Indian Two Wheeler Industry
The Indian two wheeler sector contributes the largest volumes amongst all the
segments in automobile Industry. Though the segment can be broadly categorized in
to 3-sub segments viz; scooters, motorcycles and mopeds; some categories introduced
in 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 shift
towards motor cycles at the expense of scooters. In the rural areas, consumers have
come 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 scooters
declined drastically from 33% to 25%, while that of mopeds declined by 2% from
19% to 17% during the year 2009-10. All new vehicles are a now being replaced by 4
stock 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 today
grown into a multiunit, multi-product, geographically diversified group of companies.
The hero group began with simple Philosophy: to provide excellent transportation to
the common man, at a price he could easily afford. Even today the dream providing
the total satisfaction is all its sphere of activity. To consumers, in excellent products at
an affordable price; a thorough understanding the fast changing consumer
understanding the fast changing consumer behaviour, new market segment and
opportunities, 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 it
competitors by it superior and reliable product quality complemented with excellent
marketing 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 the
4-stoke market as compared to Bajaj Auto and TVS.
TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent as
a 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 continued
its price based competitions and Hero Moto Corp cycle and Scooter Ltd. a new
entrants 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 upto 38.68%
TVS motors sales surged by a whooping 73.6% sat more importantly it is the success
of its model Victor.
Baja Auto has continued with its impressive performance witnessing significant
growth is the motor cycle and three wheeler segments. Based on the performance fill
data one can expect the company to meet it excellence by FY09.
Hero Moto Corp is the largest player is the motorcycle segment. Focused on
contemporary design and style, the company has a compare leusine ranges bikes viz;
CD-100 DX
CD-100 SS
Splendor
CBZ
Passion

COMPANY PROFILE
HERO MOTO CORP'S MISSION
Hero Moto Corps mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the highest standards of ethics and
social responsibilities.
This mission is what drives Hero Moto Corp to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake holders.
HERO MOTO CORP 'S MANDATE
Hero Moto Corp is a world leader because of its excellent manpower, proven management,
extensive dealer network, efficient supply chain and world-class products with cutting edge
technology from Hero Moto Corp Company. The teamwork and commitment are manifested
in the highest level of customer satisfaction, and this goes a long way towards reinforcing its
leadership status.
FROM THE CHAIRMAN'S DESK LEADING WITH A DREAM
We had a dream. The dream of making motorcycles that would touch and transform the lives
of our customers by giving them a mode of transport that was fuel-efficient, comfortable and
environment friendly. One that would enhance their efficiency at work, enable them to share
moments of joy with their families and add up to a better quality of life.
In a scenario where the customer had a few choices, our vision was to offer the highest
quality at a reasonable price, to meet our customers expectations, and to exceed them.
Behind the success of Hero Moto Corp, is the saga of team-work. We would like to
acknowledge the role played by our jv partners, Hero Moto Corp company, all our business
associates, shareholders and employees.
In the new millennium, we stand committed to innovation, to change, to achieving
breakthroughs to moving forward in the new century, while retaining the values that have
been like a beacon in this journey thus far.

BOARD OF DIRECTORS
No. Name of the directorscategory of directorship
1 Mr. Brijmohan Lall Munjal
Chairman & whole-time director
2 Mr. Pawan Munjal managing director
3 Mr. Toshiaki Nakagawa joint managing director
4 Mr. Yutaka kudo whole-time director
5 Mr. Om prakash munjal non-executive director
6 Mr. Sunil kant munjal non-executive director
7 Mr. Masahiro takedagawa non-executive director
8 Mr. Takashi nagai non-executive director
9 Mr. Narinder nath vohra non-executive & independent director
10 Mr. Pradeep dinodia non-executive & independent director
11 Gen.(retd.) Ved prakash malik non-executive & independent director
12 Mr. Analjit singh non-executive & independent director
13 Dr. Pritam singh non-executive & independent director
14 Ms. Shobhana bhartia non-executive & independent director
15 Mr. Sunil bharti mittal non-executive & independent director

KEY POLICIES
AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY
At Hero Moto Corp, our goal is not only to sell you a bike, but also to help you every
step of the way in making your world a better place to live in. Besides its will to
provide a high-quality service to all of its customers, Hero Moto Corp takes a stand as
a socially responsible enterprise respectful of its environment and respectful of the
important issues.
Hero Moto Corp has been strongly committed not only to environmental conservation
programmes but also expresses the increasingly inseparable balance between the
economic concerns and the environmental and social issues faced by a business. A
business must not grow at the expense of mankind and man's future but rather must
serve mankind.
"we must do something for the community from whose land we generate our wealth."
A famous quote from our worthy chairman mr.brijmohan lall munjal.

ENVIRONMENT POLICY
WE at Hero Moto Corp are committed to demonstrate excellence in our environmental
performance on a continual basis, as an intrinsic element of our corporate philosophy.
TO ACHIEVE THIS WE COMMIT OURSELVES TO:
Integrate environmental attributes and cleaner production in all our business processes
and practices with specific consideration to substitution of hazardous chemicals, where
viable and strengthen the greening of supply chain.
Continue product innovations to improve environmental compatibility.
Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
Institutionalise resource conservation, in particular, in the areas of oil, water, electrical
energy, paints and chemicals.
Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.
QUALITY POLICY
Excellence in quality is the core value of Hero Moto Corp's philosophy. We are
committed at all levels to achieve high quality in whatever we do, particularly in our
products and services which will meet and exceed customer's growing aspirations
through: Innovation in products, processes and services. Continuous improvement in
our total quality management systems. Teamwork and responsibility.

MISSION STATEMENT IN PURSUIT OF EXCELLENCE

We, at Hero Moto Corp, are continuously striving for synergy between technology,
systems, and human resources to provide products and services that meet the quality,
performance, and price aspirations of our customers. While doing so, we maintain the
highest standards of ethics and societal responsibilities, constantly innovate products
and processes, and develop teams that keep the momentum going to take the company
to excellence in the new millennium".
WE CARE FOR ENVIRONMENT
A philosophy closest to Hero Moto Corp is that which pertains to the environment,
which is why the company goes that extra step to ensure that each one of the high
technology 4-stroke Hero Moto Corp motorcycles meet the most demanding of

pollution norms at every level. This is a policy that the company has followed since
the very beginning.
WE CARE FOR COMMUNITY
Hero Moto Corp is a company with a difference. Constantly involved in social
activities, spreading. Awareness about the community and environment, the company
has taken a giant step in the fields of Health care; Education; Engineering;
Environment and many more
International Marketing
Based on our own brand of globalization, they have built our distribution network
over 60 countries worldwide and multiplied our exports from 5 percent of
total turnover in Fiscal 2007-08 to over 15 percent in Fiscal 2010-11.
Motorcycles form the major chunk of the sales revenue of Hero Moto Corp. A small
proportion of the revenue comes from the sales of spares. The proportion of sales
revenue coming from each of these two segments in the FY10 is depicted in the graph
below:

MAIN OBJECTIVE OF COMPANY

Through the company has wide list goals to be achieved but the major objective of the
company has to achieve areas follows:1. To provide right product to right people at right time.
2. Price should be reasonable; by this every level of person can afford the
product.
3. To maximize the share holders value by customer value enhancement.
4. Changes should be according to prospective customer
5. To provide delivery of standard product.
6. To provide value for money to there consumers.

QUALITY
Quality at Hero is attained not just by modern plants and equipment and through latest
technology, but by enforcing a strict discipline. At the Group factories, attaining quality
standards is an everyday practice - a strictly pursued discipline. It comes from an
amalgamation of the latest technology with deep-rooted experience derived from
nearly 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 ensures
at each stage of manufacturing that any of the faulty products are not allowed to go
through further manufacturing and distribution cycles.
Today quality is ensured from steel processing to the finished product. Each component
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 global
mainstream 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 also
employs the services of independent experts from around the world to assist in new
design and production processes.
Nevertheless, in this race to acquire the most modern techniques and technologies and
to collaborate with the most advanced players in the market, the core competence
continues to be derived from the Group's philosophy - "To Engineer Satisfaction."

MARKETING MIX STRATEGY

Product Mix

Product Variety Quality

Design

Brand Name

Warranties

Service

Features

Price Mix

List Price

Discount

Allowances

Payments Periods

Credit Terms
Place Mix

Channels

Coverage

Assortments

Inventory

Transport

Promotion Mix

Sales Promotion

Advertising

Public Relations

Direct Marketing

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 each
international 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 enveloping
countries, whereas it is confined to sports/racing (heavy motorcycles) or short istance
shopping (mopeds) in developed countries.
The world two-wheeler market is dominated by Japan. Japanese manufacturers
account 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 shift
in 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 Corp
Corporation, Yamaha Motors and Suzuki Motors Corporation share the top three slots
in the world two-wheeler market. The table below shows the production and sales
figures 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 directly
with the Indian scenario. In India, only about 15% of the production in FY11 were
exported
The 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 is
due to oligopoly between top five players in the segment, compared to thirty
manufacturers in the car industry.

EXPORTS
HERO CYCLES
HERO MOTO CORP
HERO PUCH
HERO CORPORATE SERVICES (Herosoft, Hero
Mindmine, Hero serveIT)
MUNJAL SHOWA LIMITED

1. Enhancing quality of life

The Hero Moto Corp group is committed to creating a better quality of life for people
everywhere and to furthering the interest of the society by being a responsible
corporate citizen.
2. Creating Happiness
We will bring happiness into every home, offering high consumer durable vehicles at
affordable prices, and comfort.
Achieving progress
We will pursue innovative technologies in the field of customer care vehicles and
energy, create product and services that will improve to quality of life, realize the
goals of the world community and protect the environment
3. Sustaining growth
We will be a source of pride to our business associates by ensuring mutual prosperity
and growth through the implementation of forward looking corporate strategies aimed
at identifying opportunities and responding intelligently to dynamics of change.
4. Pursuing Excellence
We will provide a conducive environment for enabling our employees to develop
their potential and make a significant contribution to the group success.

PRODUCT STRATEGIES OF HERO MOTO CORP

Hero

Hero shifted its focus from catering to the fuel efficient conscious consumer 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, which are as follows:
Street Smart: Hero Moto Corp introduced its Street Smart in 1997. The company who
were more inclined towards the scooters and who thought that the scooters were more safer
than the motorcycles, thus Hero Moto Corp decided to launch the Street Smart. The bike
was built in such a way that it resembled more like a scooters, than a motorcycle, but
actually it is a motorbike. I.e. it is a hybrid
Product Description (HERO MOTO CORP Ltd.)
Hero Moto Corp has launched the following motorbikes in the Indian market.
HERO MOTO CORP CD 100
HERO MOTO CORP CD 100 SS
HERO splendour plus
HERO MOTO CORP Splendor
HERO MOTO CORP Hunk
HERO MOTO CORP CBZ
HERO MOTO CORP glamour
HERO MOTO CORP Passion
HERO MOTO CORP Karizma
Hero

Hero shifted its focus from catering to the fuel efficient conscious

consumer 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 in
roads 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 Moto
Corp. 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 customers
with 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 advantage
achieved as a result of the increased localization levels of upto 60% to the customers.
We are in the process of keeping our product increasing popular and affordable. The
company 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 company
started off with their celebration offer, and thus decided to sanctioned a discount
and 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 29,990
and is the cheapest bike of the industry. The company gives importance to the quality
rather than cheap products.
Well Hero Moto Corp has bikes at different price point but there is one common
thing that is they are priced at a premium of INR 2000- 3000 from the competitors
and it seems their strategy is working fine with the target customers as it is the largest
seller of bikes in the Indian market with a market share of 48 % .Customers are redy
to shell out the extra money because they believe and its fact that the fuel efficiency
of the bikes is much better than its competitors the different price points for Hero
Motors Limited are :
NAME

PRICE

Dawn -------------------

38,000

Splendor ---------------

44,000

Passion ----------------

52,000

Cbz---------------------

62,000-60,000

Thus we find that HML has bikes for every one for entry level customers they have
dawn 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 performance
and 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 now
due to some problems. Hero Moto Corp is planning to introduce few more models in
years time in order to make their portfolio of products more versatile. They are trying
to introduce new models and they are trying to introduce models at the premium
segment as it has high margins and the company feels that its the segment which is
will 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 nature
as they this segment provides the volumes to the company. Hero Moto Corp still
wants to charge a price of premium as its brand enjoys a high level of respectability
and 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 scale
which help them to absorb the costs to a great extent.
PROMOTIONAL STRATEGIES OF HERO MOTO CORP
Hero Moto Corp rides safe
Hero Moto Corp's `Ride Safe and Good Rider' campaign is aimed at communicating
the philosophy of delivering safe products and promoting good driving for the overall
safety of the Hero Moto Corp customer. Created by McCann Erickson, the ad-- Hero
Moto Corp cares for your safety--invited all Hero Moto Corp owners to attend the
Ride Safe programme on October 27, 2011 at Delhi's India Gate lawns. This was the
first phase of the programme, where three instructors from Japan demonstrated
techniques of right driving. In the second phase, Hero Moto Corp will communicate
the launch of the 4S concept (sales, service, spare parts and safety) at Hero Moto Corp
dealerships. The focus of the third phase will be to promote the launch of the Hero
Moto Corp Safety Riding Promotion School, which will have riding simulators and
safety riding tracks
Hero Hero will take the riding programme-- where trained personnel will give riding
tips 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 reputed
advertising agencies like Reddifuusion, Lintas, sachi & Sachi and others.
The company has also signed a kind of agreement with two celebrities just now to be
their brand ambassadors. Hero Moto Corp, a leading manufacturer of motorcycles,
has roped in film actor Hrithik Roshan and captain of Indian Cricket team Sourav
Ganguly as its brand ambassadors for three years till 2003.
They would endorse the company products, attend corporate and brand events and
help promote its "we care" campaign comprising safety riding, environment, and
friendliness.
Hrithik and Ganguly said they were glad to be associated with Hero Moto Corp. Hero
has embarked upon an ambitious project to achieve sale of one million bikes this year
with a market share of 47 per cent. The turnover would be in excess of Rs. 3000 crore.
In October alone, 1,12,000 motorcycles have been sold, Compared to 66,063 units in
the corresponding period last year, the increase in sales is a phenomenal 69 per cent.
Cumulative sales jumped up by 41.58 per cent to 5.72 lakhs units during AprilOctober 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 help
him at every step of the way in making the correct riding decisions. Assisting him in
making the right judgments on the road, and helping him to choose the right helmet
and other riding equipment
And as bike handling requires know-how, skill, and rigorous mental conditioning, we
have put together certain safety tips and suggestions that will enhance the riding
comfort. Last but not the least, it is always important to remember - a good rider is a
safe rider.
SPORTS & ENTERTAINMENT
In sports promotions, Hero Moto Corp

will stick to cricket (following title

sponsorship of the World Cup last year, it has signed a three-year contract for HeroHero-Salve Challenger Trophy) and golf (it will continue with Hero-Hero Masters
Golf).
Moreover, after a successful association with movies-- last year it signed Pyar Mein
Kabhi Kabhi starring Dino M and Twinkle-- Hero Moto Corp is in the process of
identifying title sponsorships of youth-centric movies. Says Sobti, In terms of media

exposure, we are looking at sports, movies and news. Niche channels are also worth
putting your money on.'' For the CBZ, this year it is planning to run commercials in
youth 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 with
Hero-Hero Masters Golf). Moreover, after a successful association with movies-- last
year it signed Pyar Mein Kabhi Kabhi starring Dino M and Twinkle-- Hero Moto
Corp is in the process of identifying title sponsorships of youth-centric movies. In
terms of media exposure, the company is looking at sports, movies, and news. For the
CBZ Motorcycle, this year it is planning to run commercials in youth channels like
MTV; Discovery and Star Movies.
The Target: Services will be a major differentiator,'' says Sobti.``The campaigns will
highlight the high level of services and automated facilities at our dealerships.'' Hero
Moto Corp is expecting a 30-35 percent growth in spare parts revenue, which
accounted for Rs 100 crore 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 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 level
of services and automated facilities at the companys dealerships. Hero Moto Corp is
expecting a 30-35 per cent growth in spare parts revenue, which accounted for Rs 100
crore 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 month
now. Supporting all of the Hero Moto Corp's growth projections are amulet-pronged
strategy including a thrust on a customer relationship programme, major increase in
advertising and promotion (A&P) spending, expansion of dealership network, and a
focus 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 isexpected
to be around Rs 10 lakh, apart from land and building. No dealerhas any problem in
expanding business,'' says Sobti. We've tied up withCitibank and Centurion to
provide bill discounting through our dealers.''Consumer Finance: In order to focus on
organised consumer financing, HeroHero tied up with Tata Finance a week ago. This
is Hero Moto Corp's secondtie-up following Centurion, which is accounting for
around 3,000 bikes a month through 100 dealerships.
SALES PROMOTIONS
Hero Moto Corp regularly has promotions running for its dealers as well as customers
in order to ensure that there is a interest among the target customers abut the company
and its products. Normally Company participates in road shows, Sponsors college
festivals, promotes eco friendly initiatives, Have festive Season offers, 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 collaboration
with different banks so that customers can pick bikes in easy installments. The effect
of these promotions can be understood from the fact that 35 % of bikes are sold
through this medium.
ADVERTISING
The advertising includes both print and television media. The company uses the
services of Lintas, Sachi, and Sachi but Hindustan Thompson Association deals main
of the advertising. Besides of giving the commercial advertising the company also
releases the advertisement, which are of public interest and especially the company
releases the social advertising as to how to go about the safe driving. The company
keeps on sponsoring different Programs and various kinds of games like the company
every year sponsors Golf Championship. c The company has also recently decided to
increase their adverting budget for the current year as they have to release more
advertisements in public interest and the company has to re-launch the Street Smart
model once again which was a tremendous failure in the early stager of its launch.

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 are
offering a discount of 1001.This discount is the company sanctioned discount and the
dealers may also offer some kind of discount due to competition to attract customers
and to increase the sale figures. The company also offers a kind of promotion to the
dealers; 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 41
crore in 2010-2011. Apart from concentrating on mainstream Splendor-- the world's
largest 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, association
with NGOs, contribution to greener causes-- for corporate communications.
The corporate campaign will be largely complemented by on-ground initiatives under
the umbrella brand of ``We Care'', incorporating activities in the arena of community
services, safety and services programmes, tree-plantations and environmental-friendly
projects.
In line with Hero's worldwide, safety riding programme, this fiscal Hero Moto Corp
will take the riding programme-- where trained personnel will give riding tips to bike
owners-- to over 100 dealerships across 90 towns.
PERSONAL SELLINGAs a part of sales promotion, the company also does personal selling to the corporate
sector. This is done in case of institutional selling. In the beginning only the CSD
canteens were included but now even Multi National Companies also form a part of
the institutional selling
Heros corporate week-The week in December 2001 was observed as the corporate
week. This week was observed in the year 201 to spread awareness among the
corporate employees about the company and its range of products. In this week
various vendors participated as well as various dealers participated. This platform was
also used as making and building more cordial relations among the employees and the
dealers.

CHANNEL OF DISTRIBUTION IN HERO MOTO CORP

Hero Moto Corp continues to have the same policy of directly approaching the
dealers. However the company has made some changes in the dealership
requirements. The company has now divided its into three categories, A, B and C
depending upon the status of the town. Hero Moto Corp has made some regulations
and its dealers are bound to fulfil specific requirements for their showroom and
workshops in terms of area. The company has also started focusing on the rural
marketing such as Agartala (Tripura), Tinsukia (Assam) and Bhagalpur (Bihar). The
company has also increased the number of dealers from 350to 400.
Distribution ChannelsHero Moto Corp has very strong Distribution channel in India. Hero Moto Corp
distributions their through Regional officer, Authorized dealers Etc.

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 a
confidante and disciple of Mahatma Gandhi, and was deeply involved in the effort for
freedom. The integrity, dedication, resourcefulness and determination to succeed
which are characteristic of the Company today, are often traced back to its birth
during those long days of relentless devotion to a common cause.
Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the age
of twenty-seven. 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 heart
and soul into it. Within a short while, he not only consolidated the Group, but also
diversified into various manufacturing activities, elevating the Group to the status it
enjoys till this day
Rahul Bajaj today heads the Group. He has been the Chief Executive Officer of Bajaj
since 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 currently
India's largest two and three-wheeler manufacturer and one of the biggest in the
world. Bajaj has long left behind its annual turnover of Rs.72 million (1968), to
currently 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, leading
manufacturer 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 went
into 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 relative
strength line for the stock has moved past its zero line, indicating that the stock is
outperforming 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 intermediate
correction.
The intermediate trend of the stock is still up and investors will have to wait for some
more time before the stock actually goes into an intermediate downtrend. Keep a close
watch at the stock and investors holding the stock must continue to do so. Trading
volumes 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. The
stock is still in an intermediate uptrend and is currently moving sideways. It could
drop 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 uptrend
and are more stronger. The relative strength line has moved above its zero line and
could fall back if the stock goes into an intermediate downtrend. Investors must
always pick up the strongest stocks in the strong sector, and hence, must avoid this
stock, even though it is in a major uptrend.
KINETIC MOTORS
Kinetic Engineering Ltd., founded in the year 1970, is the leading manufacturer and
exporter of 2-wheelers. Born of the vision of the late Shri H. K. Firodia, Kinetic
Engineering Ltd., it has produced useful, heart - winning products for over two
decades. KEL manufactures a wide range of Mopeds, Scooters and Motorcycles that
are 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 endowed
technologically advanced manufacturing set up have enabled them to reach high
quality standards. The company also exports these vehicles to countries like USA,
Canada, Sweden, Latin America, Denmark and the Middle East
An agreement has recently been reached between Yamaha Motor Co., Ltd. (YMC)
and its joint venture partner in India, Escorts Limited (Chairman and Managing
Director: Mr. Rajan Nanda. Location: Faridabad, suburbs of New Delhi) under which
YMC will acquire all of the 26% of the stock presently held by Escorts Limited in the

two companies' motorcycle manufacturing and marketing joint venture, Yamaha

Motor Escorts Ltd. (YMEL).
The aims of this move to make Yamaha Motor Escorts a 100% YMC subsidiary are to
increase the overall speed of managerial and business decisions, to improve product
development capabilities and production efficiency, while also strengthening the
marketing 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 the
two companies in 1985, YMC and Escorts Limited have built a cooperative
relationship dedicated to the manufacture and sales of Yamaha brand motorcycles in
an environment of growing motorcycle demand in the Indian market. In November of
1995, the two companies established the joint venture company Escorts Yamaha
Motor Limited, based on a 50-50 capital investment. In June of 2005, that investment
ratio was changed to 74% for YMC and 26% for Escorts Limited and YMC assumed
managerial control of the company with the name being changed to YMEL and
undertook numerous measures to build the company's motorcycle manufacturing and
marketing 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 spread
of the Yamaha brand with target themes of developing products with greater appeal
and a distribution network that can respond more quickly to user needs.
Furthermore, YMC will work to develop YMI as an exporter of business type
motorcycles to neighboring countries and other markets such as Africa and Latin
America, and also as a production base that can assume a variety of roles in Yamaha's
global 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 is
anticipated for the future. Now that YMI has become a 100% YMC subsidiary, the
introduction 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 fiscal
year 2010.

SWOT ANALYSIS: HERO-HERO

STRENGTH
Technological support from Hero Moto
Corp.
The company has a deeply penetrated
dealer network (640 including service
station)
The company provides good after sales
service through its well-established
dealer network.
The company enjoys a huge market share
and well established brands like
Splendor, CD100, CBZ, etc.(Splendor is
worlds largest selling motorcycle)

WEAKNESS
Hero Moto Corp depends on Hero for
new products and this is a big weakness
considering it from the post 2005 point of
view. The reason being that the
technological tie-up between Hero Moto
Corp and Hero Moto Corp will cease to
exist.
Exports has never grown beyond 4%
The company doesn't have a product
catering to Rs. 25,000 - Rs. 30,000
segment.
The company imports about 31% of its
spares requirements. This makes the
company vulnerable to the import
policies of the government. It also
exposes them to the exchange rate risk.

OPPORTUNITY
THREATS
The motorcycle segment is growing at The technical collaboration with Hero is
the rate of 33%, which provides a great
valid only till 2005 and this is a serious
opportunity for the company to cash on.
threat as they have been dependant on
Also it is experiencing a shift in the
Hero for technology. Also Hero has set
customer preference from 4-stroke
up its 100% subsidiary in India, which
mobikes to 2-stroke mobikes. This again
shall start producing motorcycles from
provides an excellent opportunity to
2004. This will further increase the
competition.
Hero Moto Corp to leverage its market
share and market leadership for sustained Threats from Chinese companies which
profitability.
are going to launce Hi-Tech and Low cost
products
Weak competition in 125 cc & 200(+) cc The company has plans to foray into the
scooter segment, which can also be a
segment
major threat for the future prospects of
the company.

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 choices
to 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, reliability
and so on. There is no doubt in the fact that Hero Moto Corp Company rules the
motorcycle industry and has a good brand name, but the company will certainly have
to initiate some efforts. The company has then highest market share in the motorcycle
industry and maintaining such a good share will pose a challenge to the company. The
company 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 the
market. This company would be successful in the years to come as the company has
good amount of brand loyal customers. When there is talk of bike, the first thing that
comes to mind is Hero Moto Corp because of strong brand image. In our study the
main emphasis was towards the marketing mix elements (Product, Place, Price and
Promotion). The analysis is totally based on the marketing mix elements. Further for
analyzing the market share of the company properly; a survey was conducted which
also forms a part of the findings.
The two-wheelers market has had a perceptible shift from a buyers market to a sellers
market with a variety of choices. Players will have to compete on various fronts viz
pricing, technology, product design, productivity, after sale service, marketing and
distribution. In the short term, market shares of individual manufacturers are going to
be sensitive to capacity, product acceptance, pricing and competitive pressures from
other manufacturers
The segments, motorcycles have witnessed capacity additions in the last one-year and
it 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, sales
of two-wheelers will rise. Penetration is expected to increase to approximately to
more than25% by 2010.
The motorcycle segment will continue to lead the demand for two-wheelers in the
coming 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 next
two-years
The four-stroke scooters will add new dimension to the two-wheeler segment in the
coming 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 models
confirm to the norms
The three-wheeler segment will witness 10%yoy growth for the next two years. In
spite of entry of Piaggio, Italy into the three-wheeler segment in the country, Bajaj
Auto will continue to dominate the segment. In this segment, we would see players
shifting from diesel to cleaner fuels like CNG in line with norms set out by various
state 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% bike

exports to outside India

JOURNEY SO FAR
Indian companies had relied heavily on their foreign counterparts for technical
support, design of the model etc., while they provided the distribution and branding in
the Indian market. Now that the international market for motorcycles is fairly
developed and consumers are well aware, most of these foreign manufacturers are
planning to enter the market on their own. The inadequacy of the public transportation
system, the upwardly mobile middle class, which has the disposable income and the
intent to own a two-wheeler and the sheer size of the Pakistan,bangladeshand srilanka
market is proving to be an attractive factor to many multinational companies. India's
two-wheeler industry is the second largest market in the world after China. Hero Moto
Corp, whose tie-up with Hero-Hero is going to expire soon, has already entered the
fray with Hero-Activa. Others are also queuing up.
Yamaha Corporation, which was operating in India through a joint venture with
Escorts 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 its
own 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 two
decades. 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 initiative

that is aimed at reorienting and revitalizing the entire Indian operations in order to
achieve 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 where
Yamaha, the world's second largest motorcycle manufacturer operates a fully-owned
subsidiary.

RECOMMENDATION
There are no two opinions that the automobile industry is faring very well in the
Indian 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 the
company 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 dont
feel dissatisfied for services, sales, and stocks.
o This is a age of customer delight and the company should not forget that
customer 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 should
come down.
After doing market research I would like to suggest or recommend to the Company
that there are certain out comes of research, which followed through the formal and
informal 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 full
care.
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 global
revenue.
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 be
strong.
7. Now Company is required to recover the faith of customers towards the brand
image.
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.

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 7th 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 (Fifth
edition)
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+Hero
http://www.heroHero.com/co_policy.htm
http://www.heroHero.com/co_board_directors.htm
http://www.cmsnl.com/news/Hero-to-strengthen-structure-of-its-rdoperations_news245.html
http://www.etalkindia.com/indian_automobiles_news_forums/new_variant_of_hero_
Hero_bikes_launchedglamour_fi_and_cd_delux-t3336.0.html
http://www.cmsnl.com/search.php
www@heromotorcycle.com website of Hero Moto Corp bike.
www@tvsuzuki.com website of Suzuki motor bike.
nvswaminathan@bajajauto,com.