Abhijeet Abhishek Mehta Ajay Ankur Arora Ashwini Chandani Sandhu

03 04 07 09 25

Hero Moto Corp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two wheelers, based in India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. Hero Motor has finalized an export strategy focusing on markets such as Latin America, Africa and South-East Asia, taking its first step towards emerging as a global player after the recent split with its 26-year old Japanese partner Honda.

The Munjals-owned company has identified Latin America, Africa and South East Asia as the key markets. "There is a common thread between the three export markets. These are high volume and commuter-driven markets and it's a quick-win for us," said Anil Dua, senior vice-president (marketing and sales) Hero Motor. The company is looking to set up a fourth manufacturing facility - while the first three will cater to the domestic market, the new plant will be responsible for the exports.

Their Products:
Impulse Achiever CBZ Xtreme Hunk Karizma CD Dawn/ Deluxe Glamour/ Glamour FI Pleasure Passion Pro Splendor

UNDERSTANDING CULTURE

Though it is a South American country it differs culturally. Strong ties to tradition due to lack of religious diversity. Preference to social status . High Collectiveness i.e. work better in teams. less willing to embrace change due to low religious diversity. Absence of willingness to accept a moderate degree of risk and a concern with performance. Managers and employees generally dont seek challenging goals.

Chile has a relationship driven culture so initial meetings should be used to build a relationship and establish trust. Direct eye contact is important. It is common to interrupt someone while they are speaking It is important to be patient as time is not of the essence in Chile - meetings will last as long as they need to last. Managers feel it is inappropriate to consult with lower-ranking individuals when decision-making.

A collectivistic society Managers strive for consensus, people value equality, solidarity and quality in their working lives. A very high preference for avoiding uncertainty. Thus, innovation may be resisted and security is an important element in individual motivation. An effective manager is a supportive one, and decision making is achieved through involvement.

Beginning with small talk helps establish a base for the relationship, after which discussion of business matters can begin. Allow your host to initiate the business conversation. Personal relationships are more important than business relationships. Avoid talking about politics and religion if possible.

Avoid hard selling and any sort of conflict or confrontation. Paraguayans respond much better to the soft sell. The issue of saving face is important in Paraguay. Final decisions are usually made by the highest ranking officers, so it is best to have them in the meeting if possible.

Segment Young boys looking for fast sporty bikes for Latin American roads

Target Group Young boys in the age 18-30 middle class

Positioning Every person has a hero and a winner within ones self

MARKETING STRATEGIES

PARENT COMPANY: HERO group owned by Munjals CATEGORY: motorcycles, scooters SECTOR: two wheeler TAGLINE: hum me hai hero

USP: high customer loyalty, large product variety, excellent brand equity Opportunity: Market growth rate 10-15% & GDP per capita rising at high rate

Mid Price segment:

Chinese Motor Bikes Yamaha Bajaj auto TVS Suzuki Mahindra & Mahindra (SSANGYONG)

Premium Segment
Harley Davidson Ducati

1. 2.

Export Setting production center

Indirect Method for early stage. After couple of years direct method (subject to the growth rate of HMC)

Licensing Franchising Management Expertise

Definition

The granting of permission to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions.

1.

Our conclusion

2.

3.

4.

Not possible now Hero Moto Corp. is presently in license agreement with Honda Motors to use the technology of Honda Motors till 2014. To build its own technology base Hero Moto Corp. is presently in talk with European Companies for technology tie-ups. Thus, Hero Moto Corp. is not in position to be enter into an licensing agreement with any other companies.

Definition
performing the necessary managerial functions or providing managerial expertise in return for a fee.

Why is it needed?

Economies of scale Easy entry in the market and for knowledge of that market Matching the competency with the target market

Our Conclusion:
Not needed

Reasons:

Similar nature of Latin American markets And Hero Honda has already done their operation in Latin American market assembling of motorcycles in Columbia. Hero Honda also exported bikes like C-D Dawn and Glamour in Columbian Market successfully.

It is a contract under which a firm agrees to fully design, construct manufacturing facility for the purchaser for a remuneration.

Eg: of Turnkey Projects in our target market

Hyduke Energy Services Inc. (Canadian company) is in a contract with a South American based customer to provide two turn-key 1000HP AC electric drilling rig packages.

Our conclusion:

Not client specific Mass production without any customization Want to launch own product So not applicable

Setting up own plant in countries Risky Extensive Market Research Analysis of economy, industry and competitors Costly mode

 Forward: Distribution Backward: Raw Material, Local knowledge Vertical: Branding and promotions

QUERIES????