INTRODUCTION

The Automobile sector is one of the fastest

growing manufacturing sectors in India.

Indian Automobile Industry is characterized

by a very high percentage (75 percent) of two wheeler production, ranking second only to Taiwan.
The world leaders in the sector are evincing

keen interest in establishing manufacturing facilities for manufacturing and assembling

ABOUT THE COMPANY

Hero Honda has a reputation of being the

most fuel-efficient and the largest selling Indian motorcycle.

Its commitment of providing the customer

with excellence is self-evident.

A rich background of producing high value

products at a reasonable price led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle

It was this affinity in working cultures of

Honda Motor Company of Japan and the Hero Group that resulted in the setting up of Hero Honda Motors Ltd.
A relationship so harmonious that Hero Honda

has managed to achieve indigenization of over 95 percent, a Honda record worldwide.

Main models
o Cbz o Splendor o CD100 o Passion o Karizma o CD dawn

Higher Resources
Innovators: successful, sophisticated, active,

take- charge people with high self-esteem. Purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.
Thinkers: mature, satisfied, and reflective

people who are motivated by ideals and who value order, knowledge and responsibility. They seed durability, functionality, and value in products.

Achievers- successful, goal-oriented people

who focus on career and family. They favor premium products that demonstrate success to their peers.
Experiences- Young, enthusiastic, impulsive

people who seek variety and excitement. They spend a comparatively high proportion of income on fashion, entertainment and socializing.

Behavior Segmentation
In behavioral segmentation, marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. Decision Roles: - People play five roles in a buying decision: Initiator, Influencer, Decider, Buyer and User. Recognition of the different buying roles and specification of the people who play these roles for specific products and services are vital for marketers. This is especially useful for designing the communication strategy.

 Behavioral Variables: Many marketers believe

behavioral variables-occasions, benefits, user status, usage rate, buyer readiness stage, loyalty status, and attitude-are the best starting points for constructing market segments.

Positioning
Positioning is the act of designing the companys

offering and image to occupy a distinctive place in the minds of the target market, the goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. A good brand positioning helps guide marketing strategy by clarifying the brand essence, what goals it helps the consumer achieves, and how it does so in a unique way. Everyone in the organization should under- stand the brand positioning and use it as context for making decisions.

 Competitive Frame of Reference A starting point in defining a competitive

frame of reference for a brand positioning is to determine category membership-the products or sets of products with which a brand competes and which function as close substitutes. Competitive analysis will consider a whole host of factors-including the resources, capabilities and likely intension of various other firms-in choosing those markets where consumers can be profitably served.

 SEGMENTATION,

TARGETING

&

POSITIONING Current segmentation, targeting & positioning and consumer surveys we found that our client has targeted the following segments: Congested areas of urban cities. Males/Females between the age group of 1836. Middle class people , mostly officials & executives.

Product
Core Product: The core product or benefit of Hero Honda

Splendor is Traveling and saving the time by reach on desire place at right time. Basic Product: The basic product of Hero Honda splendor are Engine, Handle, Shockers, Wheels, Gear box and chain set etc.

 Expected Product: The expected products

of

Hero

Honda

splendor are: It should be 5 gear boxes. It should be 90 Kmpl mileages. It should be 120 Km/hour Maximum speeds. It should be disk brake or power brake. It should be steel body.

 Augmented Product:

The augmented products of Hero Honda Splendor are: It provides monthly check up for decrease the pollution. It provides fast service of the product.

Pricing Strategy
Penetration Pricing: The price charged for products and services is

set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom and Sky TV. Hero Honda Used penetration pricing strategy because that time Hero Honda use National Segment and low income persons so they used penetration strategy.

Price Skimming: Charge a high price because you have a substantial

competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented. Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing.

Porter five analysis

forces

1)The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate will fall towards zero (perfect competition). Few new firms can enter and non-performing firms can exit easily. 1. Economies of product differences 2. Customer loyalty to established brands 3. Capital requirements

2) The intensity of competitive rivalry For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. 1. Level of advertising expense. 2. Powerful competitive strategy.

3)The threat of substitute products or services The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: 1.Buyer propensity to substitute 2.Relative price performance of substitute 3.Perceived level of product differentiation

4)The bargaining power of customers (buyers) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. 1.Buyer volume 2.Buyer information availability 3.Buyer price sensitivity

5) The bargaining power of suppliers The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. 1.Employee solidarity (e.g. labor unions) 2.Strength of distribution channel