market survey of hero honda and their marketing

8/8/2019 Market Survey of Hero Honda and Their Marketing

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MARKET SURVEY OF HERO HONDAAND THEIR MARKETING

PROCESS

PRESENTED BY : JAYANTA KUNDU

SWASTIK BASUSAYAN CHATTERJEE

PARTHA PRATIM GHOSH

ARNAB BISHNU

PINAKI GHOSH

AJAY CHOWDHURY

A PROJECT ONA PROJECT ON

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT

6, WATERLOO STREET, KOLKATA 700069


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INTRODUCTIONINTRODUCTION

Joint Venture between Indias Hero Honda Group and Japans Honda Motors

Company.

Most successful joint ventures worldwide.

Over 20 million Hero Honda two wheelers tread on Indian roads today.

Three Globally benchmarked manufacturing facilities Dharuhera and

Gurgaon in Haryana and Haridwar at Uttarakhand.

Capable of Producing out 4.4 million units per year.

3000 customer touch point.


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COMPANY PROFILECOMPANY PROFILE

Company of Japan and the Hero Group entered a joint venture to setup Hero

Honda Motors Limited in 1983.

The Company was Incorporated on 19th January, at New Delhi. The Company

Manufacture motor cycles upto 100 cc capacity .Company was promoted by Hero

Cycles (P)Ltd.(HCPL).

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and

the $ 2.8 billion Hero Group.

Twenty five years and 25 million two wheelers later, Hero Honda is closer to fulfillingthis dream. This vision is the driving force behind everything that we do at Hero

Honda.


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MARKET SHAREMARKET SHARE

48%

32%

11%

6% 3%

Hero Honda

Bajaj

TVS

Yamaha

Honda

Financial Results for FY10Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total turnover (Net sales and other operating income) of Rs. 15860.51 Crores, growth

of 28.1 per cent

Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent

Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2

EBIDTA margin for the year 17.4 per cent

EPS of Rs. 111.77, growth of 74.1 per cent


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MISSIONMISSION

Hero Hondas mission is 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.

This mission is what drives Hero Honda to new heights in excellence and helps the

organization forge a unique and mutually beneficial relationship with all its stake

holders.

VISIONVISIONThe Hero Honda story began with a simple vision the vision of a mobile and an

empowered India, powered by Hero Honda. This vision was driven by Hero

Hondas commitment to customer, quality and excellence, and while doing

so, maintains the highest standards of ethics and societal responsibilities.


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COMPANY OBJECTIVESCOMPANY OBJECTIVES

To make maximum market share in India.

Being in business is to make money.

Speed up and automate supplier order processing.

Synchronize customer ordrs with supplier schedules.


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PRINCIPLES OF HERO GROUPPRINCIPLES OF HERO GROUP

Understanding stakeholders (includind International

partners and customers) expectations and delivering

value for money.

Managing relationships

Creating a Performance culture

Partnership Approach with ancillaries

Efficient Current Asset Management Accepting and using ever changing technology as a

facilitator

Strong quality and process orientation


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AWARDSAWARDS

National safety awards for the year 2001

National productivity awards for the year 2001

Best slogan awards for the year 2002 ICSI National awards for the year 2004

ICWAI National awards for the year 2005

Corporate social responsibility awards for theyear 2006

Bike Indian awards for the year 2007


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SWOT ANALYSISSWOT ANALYSIS Strengths

Ability to understand customers needs and wants

Recognized and established brand name

Effective advertising capability

Weaknesses

R&D is not close to the Hero manufacturing plant Hero is vulnerable in the joint venture because Honda Motor Company

has so much power

Opportunities

Global expansion into the Caribbean and Central America

Expansion of target market (include women) Become Indias leader in the scooter market

Threats

Honda Motorcycles and Scooters India can take away market share andcause joint venture to go sour

Bajaj Motors is a strong competitor


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RESEARCH METHODOLOGYRESEARCH METHODOLOGY

Data Source

Primary Data : The primary data for the study was collected by personally

administering the questionnaire to respondent and observation.

SECONDARY DATA: The secondary data for the study was collected for otherinformation from books, internet and Hero Honda Magazines.

Sampling Technique : Personal approach with

questionnaire.Sample size: 100

Analyzing and Interpretation of Data.


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PROFESSION SEGMENTATIONPROFESSION SEGMENTATION

68%

20%

12%

OCCUPATION OFRESPONDENTS

STUDENTS

SELFEMPLOYED

EMPLOYED

OCUPATION NUMBER %

STUDENT 68 68%

SELF EMPLOYED 20 20%

EMPLOYED 12 12%

Among the 100 people surveyed ,68% were students,20% were self-employed

and remaining 12% belonged to working class like office goers, clerks etc.


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INCOME SEGMENTATIONINCOME SEGMENTATION

30%

55%

10%5%

MONTHLY INCOME

40

MONTHLY

INCOME(IN

000S)RS

NUMBER OF

RESPONDENT

S%

40 5 5%

30% of the total respondents earn less than Rs. 20,000 per month, 55% of the

respondents earn Rs. 20,000-30,000 per month, 10% of the respondents earn Rs 30,000-

40,000 per month and 5% of respondents earn more than Rs. 40,000 per month.


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OWNERSHIP SEGMENTATIONOWNERSHIP SEGMENTATION

80%

20%

DO YOU OWN A TWO WHEELER?

YES

NO

RESULT NUMBER %

YES 80 80%

NO 20 20%

80% of the respondents own a two wheeler and 20 % of them do not have

one.


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MOST VIEWED ADSMOST VIEWED ADS

0

5

10

15

20

25

0

5

Hero Honda Bajaj Tvs Yamaha Honda

Hero Honda 31

Bajaj 27

TVS 13

Yamaha 22

Honda 7

The viewership rate of ads among respondents is highest for Hero Honda with 31%,

and then comes Bajaj with 27%, then Yamaha with 22%, TVS with 13% & Honda with

7%.


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MOST COMMON SOURCE OF ADS

28%

60%

5%7% TV

NEWSPAPER/MAGAZINES

BILLBOARDS

INTERNET

TV 28%

NEWSPAPER/MAGAZINES 60%

BILLBOARDS 5%

INTERNET 7%

Among the common source of ads, newspaper and magazines are marked by 70%

of respondents, TV by 18%, Internet by 7% and Billboards by 5%.


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FACTORS WHICH MOTIVATE PURCHASINGFACTORS WHICH MOTIVATE PURCHASING

DECISIONDECISION

0

5

10

15

20

25

30

35

40

45

DISCOUNTRATE

EMI RESALEVALUE

ALLOWANCES OTHERS

30

45

12

8

3

DISCOUNT RATE 30%

EMI 45%

RESALE VALUE 12%

ALLOWANCES 8%

OTHERS 3%

EMI is one of the major motivating factor with 45% liking it,then comes discount rate

30%,resale value 12%,allowances 8%,and others 3%.


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PREFERRED PRICE RANGE (PREFERRED PRICE RANGE (ININ 000000SS))

5%

22%

15%

36%

17%

5%

30 - 40 40 - 50 50 - 60 60 - 70 70 - 80 > 80 30-40 5%

40-50 22%

50-60 15%

60-70 36%

70-80 17%

>80 5%

The most preferred price range is 60-70 with 36% going for this option. 22% for

40-50, 17% for 70-80, 15%for 50-60, 5% each for 30-40 or for more than Rs.80,000.


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RATING FOR VARIOUS FACTORSRATING FOR VARIOUS FACTORS

(1 LEAST PREFERRED AND 7 MOST PREFERRED)(1 LEAST PREFERRED AND 7 MOST PREFERRED)

0

10

20

30

40

50

60

70

80

90

100

4

22 10

52

1

5

22

210

3

1

16

4

78

10

8

1

60

5

2

2

60

70

1

18

10

5

2

3 10

1

7

70

10

2

6 4

90

5 5

75

46 3

5

7

6

54

3

2

1

the most preferred factor is performance with 75% going for it. Then comes service and

support and fuel efficiency with 90% and 70% in terms of preferences. This is followed by

price and brand value of the bike.


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FINDINGSFINDINGS

The major findings during the data collection and analysis time can be summed upas follows:

Interest rates are one of the prime reasons for the sharp fall in demand.

Difficulty in availing loans, rising defaults, tightening of loan recovery laws andvarious other factors.

Increasing oil prices have deterred many lower middle class families from buying

two wheelers.

Introduction of low priced cars will directly affect the market.

With the introduction of the Bharat-4 norms, it will be more challenging to meet

these stringent norms whilst simultaneously offering competitive prices.


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market survey of hero honda and their marketing

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