Hero Honda's company profile The joint venture between India's Hero Group and Honda Motor Company,

Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift

and low emission. A legendary 'Fill it - Shut it Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage. Over 20 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together! HERO HONDA'S MANDATE Hero Honda is a world leader because of its excellent manpower, proven management, extensive

dealer network, efficient supply chain and worldclass products with cutting edge technology from Honda Motor Company, Japan. 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 fuelefficient, 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 Honda, is the saga of team-work. We would like to acknowledge

the role played by our JV partners, Honda Motor Company, Japan, and all our business associates, shareholders and employees. ABOUT THE CHAIRMAN Brijmohan Lall Munjal Seeding a Dream "Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying. The founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation entrepreneur. He is a man who started small, dreamt big and used a combination of grit and perseverance to create one of the country's

largest corporate groups and the World's No.1 Two Wheeler Company. Instinctive from a young age, Brijmohan Lall made a rather unusual start in life. Around the time when the freedom movement in India was taking shape in the late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). He was only six years old then.

seminar flower
Super Moderator

He

RE: Project on Hero Ho

Hero Honda

HERO HONDA (1).doc (Size: 1.21 MB / Downloads: 30) INTRODUCTION The rapid pace of information flow and enhanced international communication links are transforming the markets worldwide. In todays competitive business environment, achieving customer satisfaction is a key element in setting the business goals and objectives of the corporate. Improving value based service delivery and responsiveness to the customers has become a source of competitive advantage in

service sectors. In healthy economies successful and prosperous corporations coexist with one another in intensely markets in a state of vigorous and creative tension. Organizations create new value for society by continuously creating innovative new products and services and by finding between ways to make and offer existing ones: competitive markets, on the other hand, relentlessly for the same organization, to surrender most of the value of others. Conventional marketing efforts centered around the four Ps of marketing i.e. Product, Price, Place, Promotion have long influenced those responsible for the sale of consumer and

industrial products, with the primary objectives of building market share. The new marketing concept, on the other hand, focuses on strategic planning and quality with emphasis on customer analysis, total quality management and distinctive competence. Customer Delight and satisfaction: Customer satisfaction is the level of persons felt state resulting from comparing a products perceived performance in relation to customers expectations. In other words, the satisfaction level is a function of the difference between perceived performance and expectation. In todays

competitive business environment, successful organizations are raising expectations of the customers and are delivering actual performance to match those expectations. Customer value: Slowly but surely companies are entering a new era of customer relationship management (CRM). This time it will be the real thing. Not just an acronym. Not just glorified customer service. This time, it will bring real bottom-line impact and value to the company as well as to the customer. Customer value is the got topic right now. Long before the term customer relationship management (CRM) was coined,

companies battled to be the best at understanding and serving their customer. That hasnt changed. But much else has changed in technologies; business processes, organization models and customers themselves have fundamentally. Affected the marketing, sales and service continuum the customer relationship landscape. And new customer strategies will be built on a platform of new technology capabilities. Customer value management will be a win-win proposition. The focus on the customer remains, but business will simultaneously step up their efforts to gain value for themselves as well as for customers.

NEED FOR THE STUDY Todays companies are facing their toughest competition ever. Too many companies think that is the marketing or sales departments job to procure customer. If they cannot, the company draws conclusion that is marketing people isnt very good. But, In fact, marketing is only one factor in attracting and keeping customers. The best marketing department in the world cannot sell products that are poorly made or ail to meet anyones need. The marketing department can be effective only in companies whose various department and employees have designed and implemented competitively

superior customer valuedelivery system. Todays customers face a vast array of product and brand choice, prices and suppliers. We believe that customers estimate which offer will deliver the most value. Customers are the value maximizes, with in the bounds of search costs and limited knowledge, mobility and income. They form an expectation of value and act on it. Whether or not the offer lives up to the value expectation both satisfaction and repurchases probability. INDUSTRY PROFILE India is the second largest manufacturer and producer of twowheelers in the world. It stands next only to

Japan and China in terms of the number of twowheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian twowheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally, in 1960,

it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML.

seminar flower
Super Moderator

He

RE: Project on Hero Ho

Hero Honda
Hero

Honda.ppt (Size: 1,004 KB / Downloads: 18) BACKGROUND Formed in 1984 as a JV between Munjal Brothers & Honda Motors (both own 26 % each). Worlds No.1 two-wheeler company , in terms of unit volume sales. Worlds Largest Manufacturer of two-wheelers. Every second motorcycle bought in India is a Splendor Hero Hondas top-selling bike. Hero to pay Honda $1 billion , 30 50 % of the actual worth , through offmarket transaction deals. REASONS FOR THE SPLIT Bharat norm IV would have to be implemented. Greater investment in technology , in turn.

Lower profit margins and increasing R&D and loyalty costs. Hero wants to create their own identity in the global market. KEY ISSUES Future of the group Transition from Hero Honda to Hero Market share decline Retaining core customer group Increasing R&D and raw materials costs New launches by competitors Local markets response decrease Export numbers declining Fresh branding initiatives MARKET SHARE DECLINE Exploring possibilities of entry-level launches at lower prices compared to its competitors.

Three full years to develop their own capabilities and come up with entry-level models. High R&D and Cost Compensation Choosing an inhouse R&D team and not going for a domestic/foreign partner for technical collaboration will help in saving overhead costs. Hero could save up to 5500 crores on royalty for the financial year 2011. LOCAL MARKETS Focus has to be majorly on the domestic markets , where the main strength of Hero lies. Heros old Splendor and Passion models constitute 70 % of its sales ; all recent new bikes add up to only 8 % of sales.

EXPORTS Exports may not rise as fast as expected because it takes time to understand markets and to build supply chains. The Honda tag name cannot be used for exports. There will be an advantage if they export to particular locations where Honda already has a reputed name. More exports of motorcycles will be possible , since it was only limited to Indias neighboring countries till now. BRANDING Branding campaign needs to be completely revamped because people wouldnt be able to relate with the Hero group so easily. Technology

agreement between Hero and Honda bars Hero from using the Honda name if they decide to make changes to their current products. Hence , Hero has decided to rebrand. This is the reason they have asked JWT to help them out. Plans include using a new branding strategy for , on the lines of their Dhak Dhak Go and Fill It-Shut It-Forget It campaigns. Reinforcement of the new brand is the biggest key. 100 crore is being allotted by Hero to reconfigure their new brand name. Hero is planning to launch 3 new models using their own name, by the end of 2011 , with the first being a dirt bike.

NOW WHAT ? Hero is mainly picturised as a bicycle company , rather than a 2-wheeler organisation and creating a distinguishing shift in the peoples mind is most important. Advertisement like Marutis Ghar aa gaya Hindustan can be thought of , to connect with the Indian audience. Organize street shows and campaigns to create generic awareness among the people about the upcoming Hero products. Hero is reportedly hiring engineers from its competitors like Bajaj , Yamaha and Mahindra 2wheelers.