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Hero Moto Corp Strategy Recommendation

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Kaustubh Maurya

on 11 November 2013

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Transcript of Hero Moto Corp Strategy Recommendation

Hero Moto Corp Strategy Recommendation

Hero Moto Corps
Hero Honda demerged on 2010.
Formed a new identity August 2011.
Got merged to its parent Hero Investment Pvt. Ltd. on July 2012.
Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand.
Crosses the landmark figure of 5 million cumulative sales in a single year.
Currently India's no.2 Motorcycle company after Bajaj.
New Karizma ZMR EBR
Cruiser bike
Current Challenges
HERO is away from Honda now, but they are still under Honda's technology.
As per their earlier tie ups Hero is still viable to use Honda's technology even after the demerger till 2014.
Hero (HMCL) has cash reserves of about $1 billion.
The company had investments of 37.5 billion rupees,
cash and bank balances of 1.4 billion rupees,
Deserves and surpluses of 40.8 billion rupees as of Sept. 30.
Hero needs to develop its own new technology now.
But the business cannot invest a very huge amount in R&D now since it has invested enough while purchasing stakes of EBR for 35 million.
Marketing Strategy
With the increase in competition we need to move with existing marketing struggle and create a new USP.

EBR 1190RS
New Strategy
New 4P
Product – Creating a new Flagship Bike and
Price – reducing the price by 5% through reducing it companies unwanted expenses and bringing a proper stability in employee turnover.
Place – Kenya, Ivory Coast and Burkina Faso (Africa) & Peru and Ecuador (Latin America)
Promotion – Through movies ,charity events and Online.

New Market Policy
Targeting the youth.
Show cast in new action movies.
Making people aware in the maximum possible way about our products and services.
Booking right advertising slots for TVC.
Capturing every eyes thorugh various events, spotrs team sponsoring.
Organize racing events & bike rallys
Erick Buell Racing
Can use their technology and change the existing technology.
can improve the engines performance.
can redesign the existing Karizma.
Its an Austria based company
Experts in Engineering.
Was involved with Tata.
Can improve engineering for aerodynamics and handling.
Acquiring can make company more flexible.
it can its various technologies.
Tie-ups with big brands makes good reputation adn increases its equity.
Previous records show that, acquicitions and tie ups has worked very well for the Indian vehicle Industry.
(Tatas acquiring Jaguar, Range Rover, Land Cruiser)
Get audience excited
capturing eyes the design
showing at auto shows
display at malls
bike rallys
Free ride in colleges
scratch card scheme
Hrithik and Narayan Kartiken as Brand ambassador
Reviews at News channels
It will catch the attraction of the younng generation
people can have different identity for their bikes (new USP)
will be promoted by the experts
shoppers will get a ease to see the bike rather than going to showrooms
Will catch the eyes of the youth and can provoke them to own one.
beneficial to all
will make awareness to the critics and technicians
Hrithik will capture the bollywood fans.
this will be the new USP
Narayan Kartiken will capture the race/sports fans.
people will get attracted to free goodies and sports gear kits in scratch card scheme
Current Specifications
250 CC
Single Engine
Single disc break system
Rigid for steep turns at high speed
Available in fixed colors
Not Customizable
Basic Head lamps
Dual Suspension
No automatic Head Lamps
Add up Specifications
250 cc
V twin engine
Dual disk braking system
5 Spoke alloy wheels
Farious varity of colors
Custom parts
Custom Textures
Angel Eye Head lamps
Dual Suspension
Automatic Head Lamps
500 CC engine
Futuristic design
Improved mileage with Performance
V-Twin engine
Lager Disk breaks
Wide based wheels
500cc with controlled torque to improve mileage
to be with trend and Aerodynamics
With increase in price of fuel mileage consideration is important
powerful engine is the soul of cruiser bikes
Larger disk will get better braking and will reduce cost of using multiple disks
for better controls and grip on all type of roads
have a personal touch
100 CC
Futuristic design
Projector Head lamps
Improved Aerodynamics
better Suspension
Fiber body
Disk Breaks
Efficient performance
to go with the trend
Brighter vision
better control while driving on highways
comfortable riding
light weight for better mileage and easy replaceable parts
making it a premier statement
1190 CC
Sports class
Pure racing technology
Premium body structure
Single Disk Breaking system
Better toggle grip
Advanced body frame
6 Speed Transmition
New feature of customization it will be the new USP for the Hero MotoCorp, since no other company has introduced this kind of feature in India.
Acquiring of Ducati will increase Hero Motocorps brand image.
Tie-up with AVL will increase the efficiency in the engineering.

Introduction of new bike will increase the scope to capture market segments.

Kaustubh Maurya 85
Darshan Surti 117
Sagar Rajgariya 87
Gaurav Wadkr 110
Ashish Bhagat 64
Anand Patel 91
Prashant Manval 84

History of the Hero
Formed in 1844 by the Munjal Brothers
Established at Amritsar in the year 1944
Started business of spare parts for the year and that worked very well.
Moved to Ludhiana in 1956 after Indias Independence
Started business with manufacturing Bicycles and selling spare parts of bicycles.
In 1975 became Indias largest manufacture of bicycles
In 1986 Hero Cycles Limited entered the Guinness Books of World Records as the largest bicycle manufacturer in the world.
Hero Cycles in 1984
Honda Motors
Both companies entered in a joint Venture
Hero Honda
Honda made profits from Hero and when it realized that Hero-Honda is not bringing enough to
Premier manufacturer of bicycles
It won many awards and trust of the country
Hero cycles became a prestige for Indians
An idol Japanese technology
World's largest manufacturer of internal combustion engines
A rising star
Innovative technology
Scope development in Indian market
Good mileage
Better Performance
Hard working capabilities.
largest production
easy to acquire

Became Indias Largest Motorcycles producer for 2008-2010 in India
in 2004, Hero Honda became the world' largest manufacturer of two-wheelers with over 48% market share in India
Made Honda, The worldest largest Manufaturer of Motorcycles.
Based on Jim Harvey's speech structures
And then........
Improving the current technology.
Creating a new Brand Image.
Improvement in R&D to create a new technology for fuel efficiency.
Fulfill the requirements for urban street bikes.
Offering a wide range of technologically-advanced two-wheelers

Currently owned by Audi.
Slow down in Europe.
Loosing market value.
Ducati is loosing its hold in Asia and UAE
it an be acquired at 1.2 billion
Holding it can bring Ducati in India at attractive prices.
Brijmohan Lall Munjal
Satyanand Munjal
Om Prakash Munjal
Late Dayanand Munjal
Powerful engine to better pick up
to compete with the world level sports class
to reduce sudden jerk and have and controlled breaking
This will create a new identity in the market
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