MARKETING MANAGEMENT REPORT ON HERO HONDA SPLENDOR

Submitted by:

Mohit Kumar Gupta

(11031)

Table of Contents
Bike industry ........................................................................................................................................... 3 COMPANY PROFILE ................................................................................................................................. 4 HERO HONDA ...................................................................................................................................... 4 Hero MotoCorp ................................................................................................................................... 6 Segmentation Targeting Positioning (STP).............................................................................................. 8 SEGMENTATION .................................................................................................................................. 8 TARGETING.......................................................................................................................................... 9 POSITIONING....................................................................................................................................... 9 STP of Hero Honda Splendor................................................................................................................... 9 SEGMENTATION .................................................................................................................................. 9 TARGETING........................................................................................................................................ 10 Positioning ........................................................................................................................................ 10 SWOT Analysis....................................................................................................................................... 11 4Ps of Hero Honda Splendor series ..................................................................................................... 12 Product .............................................................................................................................................. 12 Price .................................................................................................................................................. 13 Promotions........................................................................................................................................ 14 Place .................................................................................................................................................. 14 COMPETITORS ....................................................................................................................................... 15 Bajaj Auto .......................................................................................................................................... 15 TVS MOTORS ..................................................................................................................................... 16 COMPETITIVE POSITION.................................................................................................................... 17 ANALYSIS ............................................................................................................................................... 19 INFERENCES .......................................................................................................................................... 20 RECOMMENDATION ............................................................................................................................. 20 REFERENCES .......................................................................................................................................... 20

Bike industry:
Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two-wheelers produced and the sales of two-wheelers respectively. In the year 2005-2006, the annual production of two-wheelers in India stood at around 7600801 units. The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the chief factors is poor public transport in many parts of India. Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family. Bajaj auto began trading in imported Vespa Scooters in 1948. Meanwhile Automobile Products of India (API) commenced production of scooters in the country in the early 50's. Until 1958, API and Enfield were the only producers of two-wheelers in India. However, Bajaj signed a technical collaboration in 1960 with Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971. The condition of motorcycle manufacturers was no different. Until the mid 80's, there were only three major motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield. The two-wheeler market was opened to foreign manufacturers in the mid 80's. The industry, which had seen a smooth ride before, faced fierce foreign competition. Motorcycle companies like the Yamaha, Honda, and Kawasaki, set up shop in India in collaboration with various Indian two-wheeler companies. Companies like Escorts, Rajdoot and faced immense competition from smaller 100 cc Japanese technology motorbikes. Bikes manufactured by Hero Honda, the only company manufacturing four-stroke bikes at that time, gained massive popularity. In the mid 80's, Kinetic introduced a varied gearless scooter in collaboration with Honda. This scooter became instantly popular with the younger generation, especially people who found it difficult to use geared scooters. The introduction of scooters created another segment for people such as women and teenagers who could not get used to driving either motorcycles or gearless scooters. Many companies such as Kinetic, TVS, and Hero also started manufacturing mopeds that proved immensely popular with people who wanted a simple riding machine. The change in the government's policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production. Currently there are around 10 two-wheeler manufacturers in the country, they being Bajaj, Hero, Hero Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. The latest trend in the two-wheeler market is the introduction of electrically operated vehicles from a range of manufacturers such as Indus and Hero. These can be recharged from convenient household electrical points. The only disadvantage is speed, which is restricted to around 25 miles per hour.

Currently, the motorcycle market is witnessing a demand for higher volume engines. Previously, the 100 c bikes were very popular owning to the high fuel efficiency offered. However, the market is maturing fast. Sensing this movement, Bajaj has introduced the Bajaj Pulsar, with 150, 180 and 200 cc engines with Dual Twin Spark Ignition (DTSi) technology Hero Honda Motors has been at the top of the unit sales of the July 2011. The company sold 4, 91,306 units for July 2011. In July last year, Hero Honda had sales of 4, 27,686 units. This is an increase of 63,620 units or 15 per cent for this years month of July. Bajaj Auto was also on the list of the companies that registered an increase in their sales. Bajaj had 14 per cent of increase in their sales for the month of July 2011 as compared to the sales of July 2010. Last July Bajaj sold 3, 18,415 units. The sales for this years July was recorded at 3, 63,712 units. That is an increase of 45,297 units. TVS Motors comes third with the same percentage of sales figures as that made by Bajaj Auto. TVS registered sales of 1, 89,962 units. Mahindra Two Wheelers Ltd. (MTWL), the latest prominent name in the two-wheeler Indian market, had a growth of 15 per cent since the last year. Percentage wise, Suzuki had the most successful year. Last year, there sales stood at 18,533 units. This July it increased to 27,088 units showing an increase of 8555 units. This increase equals to around 46 per cent of growth. Yamaha and Honda Motorcycle and Scooter India are also making their presence felt in the two-wheeler Indian market. Honda Motorcycle and Scooter India, is especially making good strides and can potentially kick off TVS from the third spot. Though they have recorded growth of only 10 per cent, the promise they are showing is far too great than that of the figures.

COMPANY PROFILE:

HERO HONDA:
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 Hardwar 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.

Hero Hondas mission & vision statement:

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.

Company performance:
During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over last year. In the same year, the company had a market share of 57% in the Indian market. Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together. Hero Honda's bike Hero Honda Splendor, the world's largest-selling motorcycle for the years 2001-2003, selling more than one million units per year. 2010-11 Performance: Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent Net profit after tax at Rs. 1927.90 Crores Total dividend of 5250% or Rs. 105 per share including Interim Dividend of Rs. 70 per share on face value of each share of Rs. 2 each EBIDTA margin for the year 13.49 per cent EPS of Rs. 96.54 Motorcycle models Sleek 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

Hero Honda Super Splendor Termination of Hero and Honda Joint Venture: In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group of India would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.

Hero MotoCorp:
The new brand identity and logo, Hero MotoCorp, 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 at Lord's Cricket Ground. Hero MotoCorp 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. 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. Manufacturing Hero MotoCorp two wheelers are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is based at Hardwar, in the hill state of Uttarakhand. Technology In the 1980's the Company pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006. Its plants use world class equipment and processes and have become a benchmark in leanness and productivity. Hero MotoCorp, in its endeavour to remain a pioneer in technology, will continue to innovate and develop cutting edge products and processes 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. Brand The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives, utilizing every opportunity and leveraging its strong presence across sports, entertainment and ground- level activation.

Segmentation Targeting Positioning (STP)

The HERO HONDA company segmented the motorcycle market by segmenting the total market in to a number of sub-markets in order to gain the overall structure of the market. Market consist of buyer who will differ in one or more aspects and they may also differ in their needs, wants, purchasing power and their attitudes and these variables can be used to segment the market. A market segment consists of a group of customers who share a similar needs and wants. By segmenting the market, the HERO HONDA company can better design, price, disclose and deliver the product and service. Segmentation involves 4 stages: 1. Identifying market segment bases (identifying potential customers having particular characteristics). 2. Developing relevant profiles for each segment 3. Forecast market potential 4. Forecast market share. The HERO HONDA has segmented its various products based on age, lifestyle, personality, occupation, income, region, loyalty and launched different type of product of engine power as 100cc, 125cc, 150cc, 225cc to attract different types of users.

SEGMENTATION
1. Demographic segmentation- In demographic segmentation, the market is divided into

groups on the basis of variables: age, family size, gender, income, occupation, education, social class, etc. The HERO HONDA company segmented the motorcycle market on the basis of age, income. Age: Each age group of people have different requirements and so, HERO HONDA focused on segment of age group: Age group 18-35 Engine power 125cc, 150cc, 225cc Model Glamour, Super Splendor, Hunk, CBZExtreme, Karizma Pleasure, CD-Dawn, CD-Deluxe, Splendor+, Splendor Pro, Splendor-NXG

35-50

100cc

Income: Income determines the ability of consumers to purchase the product. HERO HONDA is focussing on different income for different product. Economy: CD 100SS, CD Dawn Executive: Splendor Pro, Super Splendor, Splendor +, Splendor NXG, Glamour Premium: Karizma, Hunk, CBZ Extreme

Gender: Men and women tend to have different attitudinal and behavioural orientation based partly on genetic make-up and partly on socialization. Hero Honda segmented its bikes for men and for women it came up with Pleasure (Gearless bike). 2. Psychographic segmentation- In this segment, the HERO HONDA company segmented the buyers in to different groups on the basis of psychological personality traits, lifestyle. Hero Honda Karizma focused on outgoing youth of age group 18-25. Hero Honda Hunk is for men who have a macho image.

TARGETING:
After identifying the market segments, the marketer then decides which present the greatest opportunities, which are its target markets. Hero Honda has used product specialisation in the case of splendor by placing Splendor in all markets. It has also used selective specialization for some of its products, for example, Karizma and Hunk are targeted at youth preferring voluminous and bulky bikes. It is also a high-end product.

POSITIONING:
For each target market, the firm develops a market offering that it positions in the minds of the target buyers as delivering some central benefits. The HERO HONDA has positioned its brand as fuel efficient, suitable for Indian roads and longevity engine compared to other bikes in the market.

STP of Hero Honda Splendor:

SEGMENTATION
Geographical Segmentation

Geographic Segmentation calls for division of the market into different geographical units such as nations, states, regions, countries, cities, or neighbourhoods. In the South Asian context, geographic segmentation assumes importance due to variations in consumer preferences and purchase habits across different regions, across different countries, and across different states in these countries.

Demographic Segmentation

In Demographic Segmentation, we divide the market into groups on the basis of variables such as age, family size, family life cycle, income, occupation, education, religion, race, generation, nationality and social class. One reason demographic variables are so popular with marketers in that theyre often associated with consumer needs and wants. Another is that theyre easy to measure. Even when we describe the target market in non-demographic terms (say, by personality type), we may need the link back to demographic characteristics in order to estimate the size of the market and the media we should use to reach it efficiently. Age group 18-35 35-50 Engine power 125cc, 150cc, 225cc 100cc Model Super Splendor Splendor, Splendor Pro, Splendor-NXG

Psychographic Segmentation

Psychographics is the science of using psychology and demographics to better understand consumers. In psychographic segmentation, buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values. People within the same demographic group can exhibit very different psychographic profiles. Values and lifestyles significantly affect product and brand choice of consumers. Religion has a significant influence on values and lifestyles. The strict norms that consumers follow with respect to food, habits or even dress codes are representative examples in this regard.

TARGETING
Hero Honda did product specialisation in case of splendor with products such as splendor (first model) being for middle class, splendor+ was for upper middle class, splendor NXG for high-end customers.

M1 P1 P2 P3

M2

M3

Positioning
Hero Honda introduced Splendor plus to bank on the image of Splendor in the minds of customers with the Naye zamaane ki nayi Splendor tagline. Splendor NXG had improved looks as compared to Suuper Splendor and its comfortable driving was highlighted in its tagline Bharosa bhi, Style bhi and The Splendorfull bike. Super Splendor was introduced as the 125cc bike with Generation nayi, Bharosa wahi tagline relating the strengths of splendor.

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SWOT Analysis:
Strengths:-

o Hero Honda Splendor has a strong brand name. The companys name is synonymous with fuel-efficient bikes and longevity. o A huge market as it has a reputation among customers. o Hero Honda has models/products in almost every bike segment viz. economy (CD Dawn, CD Deluxe), executive (Super Splendor, Splendor+) and premium (Karizma, CBZ). o Ability to understand customers needs and wants. o Hero Honda has excellent distribution through franchisees with 4500 dealers for its brand comprising of scooters and bikes. o Hero Honda Splendor is considered as the most reliable bike for Indian roads as it requires low maintenance.
Weakness:-

o Slow to react to market changes- Slow innovation- late entrants into the 125 cc segment. o Focuses on only mileage but on power o Imports >31% of its spare parts requirements o Too much dependence on few models such as splendour which accounts for almost 50% of the companys turnover. o Hero is vulnerable in the joint venture because Honda Motor Company has so much power.
Opportunity:-

o Innovations in technology to increase power o Exports market is yet to be properly exploited.

Threats:-

o All major bike makers in the world are lining up for India. o Bajaj Motors, TVS Motors are strong competitors. o Baja Auto has found popularity with both its low-end and premium offerings, which have helped chip away at Hero Hondas dominance. o Hero Honda Motors Limited is losing a foothold in the exports market which is now dominated by Bajaj. o Hero Honda is completely dependent on Honda for its R&D and new product development.

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4Ps of Hero Honda Splendor series

Product
Hero Honda Splendor bikes are designed with customer comfort in mind, with a contoured low-slung seat, specially designed handlebar and a strong double-cradle tubular frame. The suspension system works so well that the customer never realizes what happens between the tires and the bumpy road.
Hero Honda splendour+: Technical specifications

Engine Type air cooled, 4 stroke, single cylinder Displacement 97.2 cc Max.power 7.4 BHP@8000rpm /5.5KW @8000 rpm Max.torque 7.95 N-m@ 5000rpm Transmission Clutch multiplate wet Gear box 4 speed constant mesh Dimensions L*W*H 1970mm*720mm*1040mm Wheelbase 1230mm Saddle height 785mm Ground clearance 159mm Fuel tank capacity - 11litres Reserve 1 litre (usable reserve)
Hero Honda splendour NXG: Technical specifications

Engine Type Displacement Max.power Max.torque Ignition Transmission Clutch Gear box Dimensions L*W*H

air cooled, 4 stroke, single cylinder 97.2 cc 7.7 BHP@7500rpm /5.67KW @7500 rpm 7.7 N-m@ 6000rpm capacitor discharged ignition multiplate wet 4 speed constant mesh 1970mm*720mm*1040mm

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Wheelbase 1230mm Saddle height 785mm Ground clearance 159mm Fuel tank capacity - 10.3litres Reserve 1.8 litres (usable reserve)
Hero Honda super splendour: Technical specifications

Engine Type air cooled, 4 stroke, single cylinder Displacement 124.7 cc Max.power 6.72KW (9 BHP) @7000 rpm Max.torque 10.35 N-m@ 4000rpm Transmission Clutch multiplate wet Ignition digital-CDI ignition (AMI) Gear box 4 speed constant mesh Dimensions L*W*H 1995mm*735mm*1095mm Wheelbase 1265mm Saddle height 785mm Ground clearance 150mm Fuel tank capacity - 12litres

Price
Determining price levels and pricing policies is the major factor affecting revenue. Factors such as the demand for the good, the market price, and customer responsiveness to price changes influence the price levels at hero Honda. Other factors such as a convenient location or more personalized service allow hero Honda to charge a competitive price. Making sure your price is standards, however, by checking to see what competitors' prices are of similar product.
Hero Honda splendor +:

Hero Honda splendor plus price in delhi-41602/Hero Honda splendor plus price in bangalore-44502/Hero Honda splendor plus price in chennai-44425/Hero Honda splendor plus price in kolkata-44875/Hero Honda splendor plus price in mumbai-46024/Hero Honda splendor NXG:

Hero Honda splendor NXG price in delhi-46104/-

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Hero Honda splendor NXG price in bangalore-45353/Hero Honda splendor NXG price in chennai-43543/Hero Honda splendor NXG price in kolkata-49350/Hero Honda splendor NXG price in mumbai-48387/Hero Honda super splendor:

Hero Honda super splendor price in delhi-46994/Hero Honda super splendor price in bangalore-50356/Hero Honda super splendor price in chennai-50235/Hero Honda super splendor price in kolkata-50425/Hero Honda super splendor price in mumbai-51941/-

Promotions
THE product line of the hero Honda says Hero Honda desh ki dhadkan Advertising of hero Honda is done through The yellow pages A press release Sponsoring a civic event or activity Eg: Sponsored '7th World Cup Cricket tournament' at England in 1999 Sponsored 'India-England Test Series' in 2001 Sponsored 'India-England Women's Cricket Series' in 2002 The newspaper Billboards or posters Flyers or handbills Direct mail advertising Television The radio Hero Honda has roped in film actor Hrithik Roshan, Captain of Indian Cricket team Sourav Ganguly, Mohammad Kaif, Harbhajan Singh, Zaheer Khan, Yuvraj Singh and Virender Sehwag as its brand ambassadors. They will endorse the company products, attend corporate and brand events and help promote its "We Care" campaign comprising safety riding, environment and friendliness.

Place
The manufacturer and wholesaler must decide how to distribute their products. Working through established distributors or manufacturers' agent generally is most feasible for small manufacturers. Small retailers should consider cost and traffic flow as two major factors in

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location site selection, especially since advertising and rent can be reciprocal. In other words, low-cost, low-customer traffic location means you must spend more on advertising to build traffic. Hero Honda Splendor bikes are positioned all over India.

COMPETITORS:

Bajaj Auto
The Bajaj Group is amongst the top 10 business houses in India. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Bajaj Auto was founded in 1926 by Jamnalal Bajaj. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand has found a global market. Bajaj entered into a technical collaboration agreement with Kawasaki of Japan. Production of Kawasaki 100cc motorcycles started in 1986. In terms of market share January 2009 was about 21% motorcycle market share and rose to about 32% in January 2010. So it is a big growth of about 11% in market share terms. Motorcycles: pulsar 135 ls(new), pulsar 220 dts-i, pulsar 180 dts-i, pulsar 150 dts-i, discover 150, discover 125, discover 100, platina 125, ninja 250R, ninja 650R(new).

Bajaj Discover 100:

Engine: 94.38 cc Price: 41,736 Maximum Power: 7.7 @ 7500 Dimensions: (LxWxH) 2040 x 760 x 1087 mm Ground Clearence: 162 mm

Bajaj Discover 125:

Engine: 123cc Gear Box: 5 speed Maximum Power: 12.5bhp @ 7250rpm Ground Clearence: 160mm

Bajaj Platina 125:

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Engine: 124.6 cc Price: 29,520 Maximum Power: 9.5 Ps @ 7000 rpm Dimensions: (LxWxH) 1990 x 770 x 1090 mm

TVS MOTORS
TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the flagship company of the USD 4 billion TVS group. TVS Motor traces its origins back to the entrepreneurial spirit of Trichur Venkagaruswamy Sundaram Iyengar who gave up lucrative careers in the Indian Railways and in banking to set up his own business. He began with Madurai's first bus service in 1912 and founded T.V.Sundaram Iyengar and Sons Limited, a company that consolidated its presence in the transportation business with a large fleet of trucks and buses under the name of Southern Roadways Limited. Venu Srinivasan is the present chairman and managing director of TVS Motor Company, India. A BIKE FOR ANYONE TVS Motors currently manufactures a wide range of two- wheelers from mopeds to racing inspired motorcycles. Motorcycles: Apache RTR 180, Flame DS 125, Flame, TVS Jive, StaR City, Sports) Variomatic Scooters: (TVS Wego, Scooty Streak, Scooty Pep+, Scooty Teenz) Mopeds:(TVS XL Super, TVS XL Heavy Duty)

TVS FLAME:
Engine: 124.8 cc Price: 47,250 Gear Box: 04 Gear Constant Mesh Maximum Power: 7.7 KW @ 8250 RPM

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Dimensions:(LxWxH) 2030MM x 760MM x 1070MM mm

TVS Sport:
Engine: 99.7cc Gear Box: 4- speed constant mesh Maximum Power: 5.550KW(7.5bhp)@7500rpm

TVS STAR City:

Engine: 109.7cc Price: 42,084 Gear Box: 4 - Speed constant mesh Maximum Power: 6.1 kW @ 7500 rpm Dimensions: (LxWxH) 2002 x 700 x 1058 mm Ground Clearence: 165 mm

COMPETITIVE POSITION:
Hero Honda is a market leader in the twowheeler segment with a 39% share of sales volumes in H1FY10. Bajaj Auto, the closest competitor, has a 27% share followed by TVS Motors 15%. Hero Hondas market share is on account of its dominant position in the domestic motorcycle segment, where it has a 53% market share, led by leadership in the executive subsegment.

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market share(%)

19 39 hero honda motors bajaj auto 15 TVS motors others

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Revenue( Rs mn) Market Share (%) PAT margin (%)

Hero Honda motors LTD. (Mar 10) 164,276.0 39 13.6

Bajaj auto LTD. (Mar 10) 119,182.1 27 14.2

TVS motors LTD. (Mar 10) 46,111.7 15 0.7

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ANALYSIS:
Comparison of Hero Honda Splendor with its Competitors:

Comparison of Hero Honda Splendor with its competitors on parameters of Tank Capacity, Speed, Max. Power in Bhp and Cubic Capacity:

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INFERENCES:
Customer satisfaction is one of the major part of buying behaviour. Company has to build strong brand awareness and credibility among its customers. Majority of people are aware about Hero Honda brand. Hero Honda tries to produce vehicles that attract customers with attractions such as low/zero maintenance cost. Technically, Bajaj is better compared to others but customers prefer Hero Honda bike due to high resell value and low maintenance.

RECOMMENDATION:
Introduce more bikes in the premium segment with higher engine displacement. Increase its fuel efficiency for bikes in lower price range. Expand to countries that heavily utilize two-wheelers Improve its after sales service by providing training to mechanics and making them understand the brand image of Hero Honda Introducing new bikes in women segments competing TVS scooty.

REFERENCES:
Marketing Management by Philip Kotler, Kevin Keller, Abraham Koshy, Mithileshwar Jha http://www.equitymaster.com/detail.asp?date=04/11/2005&story=2&title=HeroHonda-A-SWOT-analysis http://www.nseindia.com/content/corporate/eq_rrl_HEROHONDA.pdf http://www.consumercomplaints.in/complaints/hero-honda-aftersales-servicec163497.html http://www.mouthshut.com/product-reviews/Hero-Honda-Splendor-reviews925000056 http://www.hoovers.com/company/Hero_MotoCorp_Ltd/rhtcxxi-1.html http://www.hoovers.com/company/Bajaj_Auto_Limited/rtrscri-1-1njg4g.html http://www.venturenavigator.co.uk/content/143

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