HERO MOTOCORP

LTD.

Presented By:-Akash Mishra MBA

INTRODUCTIONHero Moto Corp Ltd. is the world’s largest manufacturer of

two-wheeler, based in India.

In 2001,the company achieved the best position of being the largest two-wheeler manufacturer in India and also, the “World’s No.1” two-wheeler company in terms of unit volume sales in a calendar year. Hero Moto Corp Ltd. continues to maintain this position till date.

Company continues to lead the domestic motor cycle market with 54.6% market share

IMPORTANT PEOPLEFounder:- B.M MUNJAL

Director:- BRIJ MOHANLALManaging Director:- PAWAN MUNJAL (C.E.O)

productsHero product range includes variety of motor cycles that

have set the industry standards across all the market segments.

The company also started manufacturing scooter in 2006.

Hero offers large number of product and serve to wide variety of requirement across all the segments.

Key strategiesTo build a strong product portfolio.Explore growth opportunities globally.Improve its operational efficiency continuously.Aggressively expand its reach to customers.Continue to invest in brand building activities. Ensure customer and shareholder delight.

competitors1. Bajaj Auto

2. TVS Motor

3. Mahindra

4. LML ( Lohia Machinery Limited)

Market presencePRODUCT :CD Dawn, Splendor, Passion, Glamour , CBZ, Karizma etc.PRICE :Price of Hero Bikes starts from Rs.39478 to Rs.1,10655.

SEGMENTATION and TARGETING :

Splendor- Price oriented people. Glamour- Price as well as Tech oriented people. Karizma- Status oriented people.

POSITIONING :Worlds largest motor cycle manufacture company. It is

known by its sale of over 15 million bikes.

missionsHero Moto Corp’s mission is to become a global

enterprise fulfilling its customer’s needs and

aspirations for mobility.

Setting benchmarks in technology, styling and quality

so that it converts customers into brand advocate.

Organisation StructureProvide friendly environment to employees.

Encourage its employees to put in their best.

Embedded with humanity and honesty to achieve mutual respect.

JOINT VENTURE

HERO BEFORE JOINT VENTURE

Hero cycles manufactured 16000 cycles per day.

Sold about 86 million bicycles till 2002.

Nurtured an excellent network of dealers to serve India's expansive market.

HONDA STRATEGIES Honda motor company initially planned to enter two wheeler

segment and electric generator segment

Honda first chose kinetic engineering ltd. and formed Kinetic Honda

Motors Ltd. joint venture for scooter manufacturing

It chose Hero Group for motor cycle

manufacturing as joint venture.

WHY HERO FOR JOINT VENTURE

Wide Distribution Network Through

Dealers

Better Understanding Of

The Market Dynamics

Limited options with Honda

Wide Experience In Manufacturing of

Vehicles

DEAL IS DONE!Joint Venture came up in June 1984 -Hero Honda Motors

Ltd.\Honda would provide technical know how and assist in setting

manufacturing facilities,

Honda agreed for $500000 as one time wage sum fees and 4%

loyalty

Joint Venture had 26% equity each with 26% to the public and rest

with the financial institutions

THE SPLIT...HERO HONDA 1984 - 2010

HERO

MOTOCORP LTDPaid

2,479 crore for assembly,

manufacture

, selling

which have been reduce over a

period of 42 month

HONDA-

Entered

into a share transfer

agreement -

Entire share holding of 26% transferred to

Hero, bringing an

end to

the join

t venture

REASONS FOR SPLITReason 1 •Higher Royalty Payments

Reason 2 •Refusal of Hero Honda to merge the company's spare parts business with HMSI

Reason 3 •Partners turning into Competitors

After Splitting New logo PUNCHLINE Hum Mein Hai Hero

Thank You