HERO MOTOCORP

Submitted by: Harish Tangirala (1226110241) Harikrishna Sapna Yadav (1 (1226110145)

R.Harshita Rao (1226110227) Chetan Sameer Vinay Koka

Company History Hero Moto Corp formerly Hero Honda is a motorcycle and scooter manufacturer based in India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda. Hero Honda has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero Honda has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program. The new brand identity and logo, Hero Moto Corp, was developed by the London firm Wolff Olins. The logo was revealed on 9 August 2011 in London, the day before the third test match between England and India. Hero Moto Corp can now export to Latin America, Africa and West Asia. Hero is free to use any vendors for its components instead of just Honda-approved vendors.

Company Philosophy Vision The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena. Mission Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners. Strategy Hero MotoCorp's key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight. Distribution The Company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero MotoCorp's extensive sales and service network now spans over to 5000 customer touch points. These comprise a mix of authorized dealerships, service & spare parts outlets, and dealer-appointed outlets across the country.

Products

Achiever Ambition 133, Ambition 135 CBZ, CBZ Star, CBZ Xtreme CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour F.I Hunk Karizma, Karizma R, Karizma ZMR FI Passion, Passion+, Passion Pro Pleasure Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor NXG,Splendor PRO

Brand Identity Hero is aggressively trying to re identify itself in the market through advertisements. It has hired global brand and innovation specialist Wolff olins to create its new brand identity.

Brand Positioning Hero motors have hired Law & Kenneth as a creative partner to launch and establish the new brand for the company. A new 360 degree campaign is being devised to position the brand in the mindset of the customers. Earlier Hero Honda has position itself as a mass mover in the Indian mindsets as it mainly focused on the 100 cc segment. Hero Honda was also the first company to position itself in the premium segment way back in 2001 though it failed to retain that position for long. For bikes it was positioned as strong, sturdy and trustworthy vehicles and for scooterettes it was positioned as mileage and fun to ride.

 Clear distinction between each bike and the category.

SWOT Analysis

Strengths Over 95% indigenization of parts Most exhaustive sales and service network across India Models/products in almost every bike segment. High brand equity/reputation amongst customers It had huge expertise due to its past association with Honda. Is widely appreciated for making reliable bikes in every segment. Strong resale value.

Weaknesses High dividend payouts led to low cash reserves. Entirely dependent on Honda for technology. Virtually stagnant in the highly lucrative premium segment amongst two wheelers. High imports of spares (>31%) Too much dependence on too few models. Constantly relies on minor facelifts rather than total up gradation of models. Slow to react to market changes. Opportunities Bike segment is still on the rise.

 125cc bike segment This segment is yet to pick up. High end bikes in the category of >200 cc are yet to be fully exploited as this is the most lucrative market today. Termination of its JV opens up foreign markets for exports. Variants can be launched to increase market share. Opportunity for JV with international bike manufacturers. Threats All major bike manufacturers in the world have entered Indian market. Bajaj auto is leading in the export market. Its split from Honda has caused concerns regarding the performance of future bikes. Unavailability and high costs of spares are driving customers towards other brands.

BIBLOGRAPHY

Company history and Philosophy-

http://www.heromotocorp.com/aboutus/thecompany http://mediapanther.co.in/branding/hero-motocorp-begins/ Company History-

http://en.wikipedia.org/wiki/Hero_MotoCorp Company products -

http://www.scribd.com/doc/52815789/hero-honda SWOT analysis-

http://www.scribd.com/doc/49186789/hero-honda

Company strategy and distribution www.heromotocorp.com