ACKNOWLEDGMENT

At the very onset, I would sincerely like to thank of building up our

confidence, which let to the fulfillment of our market survey report.
The completion of this project is due to the help of few individuals whom
I cannot let go unhanded.
I wish to express our deep gratitude especially to our guide without
whose guidance, support and encouragement.
I would have not been able to complete this market survey report that
delves cursorily on the aspects of Marketing Strategy of Hero Moto
Bike It is needless to say that any piece of creative work require the
involvement of a number of individuals, since it is beyond the scope of
limitation to enlist each and every individuals associated with this work
who extended their co-operation in sharing unbiased views and feedback
which helped to collect concrete data.
Hence, I would express our sincere gratitude to all those who played
contributory role directly or indirectly towards accomplishment of our
market survey report.


PREFACE

If we want to go global in the world market then we must know the trend
of the market, what features must be there in the product so that it should
get popularity among the masses and also should know about
competitors position in every field.
The objective of market survey is to know the strategy of Hero Moto
Bike in the world market and we must know what should be the price
range and what types of marketing should be done so that it gets familiar
with every type of person. So needs and objectives of the market survey
is very important to get a good market share , stand in the market and to
survive the business in the present competitive world where there is a
trend of cutthroat competition.
Hero Moto Bikeis a leading company in bikes sector. Knowing the
comparative position of a brand vis--vis its competitors is an essential
thing as well as product is essential for deciding appropriate marketing
strategies for any company.
It was then the project was undertaken in order to
1. What is the prospective customers market for Hero Moto Bike in
the world
2. Know the choice of residents of other foreign countries
3. Know the brand image of Hero Moto Corp
4. Perceive the future sales of Hero Moto Bike products
5. Pricing in the view of prospective customers
6. Mode of purchasing the product



EXECUTIVE SUMMARY

Hero Moto Bikethe Principal activities of the Company is manufacturing
and marketing of motorcycles and spare parts. The Company is a joint
venture between Hero Group, India. The Motorcycles of the Company
features facilities such as four stroke technology, phenomenal fuel
economy and low exhaust pollution levels. The major brands of the
Company include Splendor, Joy and Passion. The two manufacturing
facilities of the Company are located in Haryana. Motorcycles accounted
for 95% of fiscal 2009 gross revenues and spare parts, 5%. Grows over
500% in five years For 2010-11, volume up by 38 per cent ; net profit
soars by 88 per cent; total turnover up by 42 per cent Achieves a high 48
per cent motorcycle market share; and 33 per cent two-wheeler market
share Announces 350 per cent final dividend and 250 per cent
celebration dividend (over and above special interim dividend of 250%)
Over the last five years, company's total turnover grows by a whopping
580 %; PAT by 919 % New Delhi, April13, 2011: Hero Moto BikeCo..,
the newly crowned World No. 1 two wheeler companies, declared
outstanding financial results for the year 2010-11. Profit after tax (PAT)
is Rs. 462.93 crore, a growth of 88 per cent. The company's total turnover
(sales plus other income, net of excise) grew to Rs. 4539.49 crore, a
growth of 42 per cent. In a landmark run, the company achieved a 48 per
cent market share in the motorcycle category during the year; and 33 per
cent of the total two -wheeler market. The company recorded a
cumulative sale of over 14.25 lacs motorcycles for the year 2010-11.
The company's Spare Parts business also showed a remarkable increase of
39 per cent, taking the annual sales to Rs. 209 crore. Encouraged by the

response the company has set a target of Rs. 250 crore for the current
financial year.
Hero Moto Corp's growth over the last five years has been truly
outstanding, with both revenue and PAT showing significant jumps of
over 5 times. While the revenue increased from Rs. 783 crore in 2008-09
to Rs. 4539 crore in 2010-11. PAT has increased from Rs. 50 crore in
2008-09 to Rs. 463 crore in 2010-11. The total sales has also increased
from 2,68,931 motorcycles in 2010-11 to 14,25,302 motorcycles in 2010-
11, with volume market share jumping from 27 per cent to 48 per cent in
motorcycles; and 9% to 33% in two-wheelers.Mr. Brijmohan Lall,
Chairman and Managing Director, Hero Moto Corp., commending the
company's achievement said, "I thank all our stakeholders - our Hero
Moto Bikefamily of employees, ancillaries, -vendors, dealers, other
business associates, and most importantly, our customers. They have been
instrumental in our achieving the World No.1 status. I would also like to
make special mention of the excellent support provided all through by our
joint venture partners Hero Moto BikeCompany, and Hero Cycles Ltd.
Our relationship with them has been wonderful and mutually satisfying.
As we move forward, our collaborative approach will help us continue
our lead." On the momentous occasion, Mr. Pawan Munjal, Director and
CEO, Hero Moto Corp. Said, "The key reason for our success has been
our continuous pursuit of pro-actively delivering value and delight to our
customers. This is evident from the pioneering initiatives we undertook
during 2011 - like the full two-year warranty on all Hero Moto
Bikemodels, and the launch of the most comprehensive Customer
Relationship Programme, 'The Hero Moto Bike Passport Programme'.
Further, despite strong competition and pressures on the economy as a
whole, the company has improved operating profits significantly, mainly
because of cost rationalization, strong working capital management and

manufacturing efficiencies."He added, "We are committed to continue
our lead, by delivering even better value to the customers, in the year
ahead. Accordingly, several new and exciting product launches are lined
up for 2008-09, and in the future. The manufacturing facilities to support
the customer demand would also be pro-actively set up, as has been done
till now." Especially present on the occasion was Mr. K Suzuki, Senior
Managing Director, Hero Moto BikeCompany, Japan, who had flown in
only that morning to attend the Press Conference and the World No. 1
celebrations. Clearly ecstatic he said, I congratulate Hero Moto Bikefor
their wonderful and consistent achievements. Last year they achieved the
distinction of being No. 1 Joint Venture of Hero Moto BikeCompany
worldwide; and this year achieved the unique status of World No. 1 two
wheeler companies. Our relationship has always been strong and solid.
We are proud of this achievement for the Hero Group, Hero Moto
BikeCompany, and the Indo-Japanese co-operation. We would continue
to provide all the necessary support to Hero Moto Corp, for it to remain
on the top".


INTRODUCTION

The Indian Two Wheeler Industry
The Indian two wheeler sector contributes the largest volumes amongst
all the segments in automobile Industry. Though the segment can be
broadly categorized in to 3-sub segments viz; scooters, motorcycles and
mopeds; some categories introduced in the market are a combination of
two or more segments e.g. scooter and stepthrus. The market primarily
comprises five players in the two wheeler segment with most of the
companies having foreign collaborations with well known Japanese firms
earlier. But with most of the companies now planning 100% subsidiaries
in India.
In the last four to five years, the two-wheeler market has witnessed a
market shift towards motor cycles at the expense of scooters. In the rural
areas, consumers have come to prefer sturdier bikes to with stand the bad
road conditions. In the process of the share of motor cycle segment has
grown from 48% to 58%, the share of scooters declined drastically from
33% to 25%, while that of mopeds declined by 2% from 19% to 17%
during the year 2009-10. All new vehicles are a now being replaced by 4
stock motorcycles. Reduced excise duties and fierce competition has led
to a fall in prices of certain models.
Hero, a name synonymous with two wheelers in India, began its journey
around four decades ago. Starting as a manufacturer of by cycle
components, hero has today grown into a multiunit, multi-product,
geographically diversified group of companies.
The hero group began with simple Philosophy: to provide excellent
transportation to the common man, at a price he could easily afford. Even
today the dream providing the total satisfaction is all its sphere of

activity. To consumers, in excellent products at an affordable price; a
thorough understanding the fast changing consumer understanding the
fast changing consumer behaviour, new market segment and
opportunities, and marketing mix sensitive changing customer needs from
the core of Heros marketing strategy and philosophy.
Hero Moto Corp. is one of the leading companies in the two wheeler
Industry. At present, it is segment with around 47% the market share
during financial yr. 2000-01. The company ahs emerged one of the most
of successful players, much ahead of it competitors by it superior and
reliable product quality complemented with excellent marketing
techniques.
Hero Moto Bikehas been an early entrant in the 4-stroke segment of the
two wheeler industry. With a right mix of product styling and pricing the
company has graped the 4-stoke market as compared to Bajaj Auto and
TVS.
TVS Motors Ltd has been the largest manufacturer of mopeds which are
prevalent as a low cost transportations and provide a tremendous potential
is all parts of India. However the company is likely to face threat Bajaj
Auto Ltd (BAL) which continued its price based competitions and Hero
Moto Bikecycle and Scooter Ltd. a new entrants in the 2 wheeler market.
Infact the company has achieved excelled the Industry growth rates by a
huge margin. From April to December 2008 while the motor cycle
industry sales were upto 38.68% TVS motors sales surged by a
whooping 73.6% sat more importantly it is the success of its model
Victor.
Baja Auto has continued with its impressive performance witnessing
significant growth is the motor cycle and three wheeler segments. Based
on the performance fill data one can expect the company to meet it
excellence by FY09.

Hero Moto Bikeis the largest player is the motorcycle segment. Focused
on contemporary design and style, the company has a compare leusine
ranges bikes viz;
CD-100 DX
CD-100 SS
Splendor
Street Smart
Steek
CBZ
Passion
It splendor model is an urban centric with its fuel efficiency which
accounts to over 60-70% of its sales. The passion launched in mid Jan.
2001 has a resending success contributing to 26% of its sales.
TVS offers a wide ranges of two-wheelers motorcycles-
Victor/Fiero/Max100/ max100R/Max DL.
Scooterette- TVS scooty
Moped- chap/XL/XL super/XL supper HD/sports.
TVS plans to launch 4 new models in the coming 15 months. A 4-stroke
version of Indias best selling scooterttes; TVS-scooty and 4-stroke
version of the existing moped line will be launched this year.
Bajaj Auto Ltd: Offer product a service to the customers so as to satisfy
their needs. Its having 4-stroke single cylinder natural air cool the
displacement of engine is 111.6 CC having the engine power it 7-7 bhp at
7000 spm. The bike is having a hydrometric disc brake in front wheel.
Flash is an added future in the bike.
In 1993 BAL manufactured 12 different model 5-5 scooter model, 3-
motorcycle model, moped model, 3-three wheeler model.

But in the recent year Bajaj developed various model in the motorcycle
segment which providing good riding conditions is urban road as well as
rater roads. Scooter- cub/super/super FE/chetak/stride/Msl Priya.
Moped- Bajaj Sunny.
Motorcycle- M-80/kawasaki RTZ/Kawasaki45 by 1993 and latest model
are. Eliminator/Pulsor 180/Pulsor 150/Boxer/Caliber Crowa/Caliber
Sales performance of the player:
Hero Moto Bike repeated a y-o-y growth of 6.3% is its motorcycle sales
for the month of Jan 2006 at 1,45,708 units. Export during the month
have surged almost 64% y-o-y. On a month on-month basis the sales
growth has been even higher up 16.5%.
MOTORCYCLE APRIL TO DEC
2010
APRIL TO DEC 2009 % CHANGE
INDUSTRY SALE 2897842 2089637 38.68
INDUSTRY SALE 1281342 1026102 24.85
MARKET SHARE 44.21 49.11
Bajaj Auto: Bajaj auto has reported y-o-y growth of 19.8% in motorcycle
sales for Jan 2006 at 75059 units. On a month-on-month basis the growth
is 8.8%. Export performance continues to be impressive with 10,089 two
and three wheelers exported in Jan 2006, a growth of 98.6% y-o-y.
Two wheeler sales for the current year are up 6.8%. The growth is driven
sharply in the motor cycle sales upto 37% in two wheeler segment, the
share of motor cycle has jumped from 52.8% to 67.8% during the current
year. this sharp growth in the motor cycle can be attributed to the positive
response received by its need products and the encouraging performance
of select existing model.
India is the second largest manufacturer and producer of two wheelers in
the world. It stands next only to Japan and China in terms of the number
of two-wheelers 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 two-wheeler 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.
Under the regulated regime, foreign companies were not allowed to
operate in India. It was a complete seller market with the waiting period
for getting a scooter from Bajaj Auto being as high as 12 years.
The Motorcycles segment was no different, with only three manufacturers
viz Enfield, ideal Jawa and Escorts. While Enfield bullet was a four
stroke bike, Jawa and the Rajdoot were two-stroke bikes. The motorcycle
segment was initially dominated by Enfield 350cc bikes and Escorts
175cc bike.
The two wheeler market was opened to foreign competition in the mid-
80s. And the then market leaders- Escorts and Enfield were caught
unaware by the onslaught of the 100cc bikes of the four Indo-Japanese
joint ventures. With the availability of fuel efficient low power bikes,
demand swelled, resulting in Hero Moto Bikethen the only producer of
four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties.
TVS Suzuki and Hero Moto Bikebrought in the first two-stroke and four
stroke engine motorcycles respectively. These two players initially
started with assembly of CKD kits, and later on progressed to indigenous
manufacturing. In the 90s the major growth for motorcycle segment was
brought in by Japanese motorcycles, which grew at a rate of nearly 25%
CAGR in the last five years.
The Industry had a smooth ride in the 50s, 60s and 70s when the
Government prohibited new entries and strictly controlled capacity
expansion. The industry saw a sudden growth in the 80s. the industry
witnessed a steady growth of 14% leading to a peak volume of 1.9mn
vehicles in 1990.

















COMPANY PROFILE






Fill it. Shut it. Forget it
What started out as a Joint Venture between Hero Group, the world's
largest bicycle manufacturers and the Hero Moto BikeCompany of Japan,
is today the leading manufacturer of India's largest selling motorcycle.
Coming into existence on January 19, 1984. Hero Moto Bikegave India
nothing less than a revolution on two-wheels made even more famous by
the 'Fill it - Shut it - Forget it' campaign. Driven by the trust of over 30
lakh customers, the Hero Moto Bikeproduct range today commands as
much as 47% making it a veritable giant in the industry. Add to that
technological excellence, an expansive dealer network, and reliable after
sales service, and you have one of the most customer-friendly companies.
In fact, every second bike sold in India today is a Hero Moto Bike!
Customer satisfaction, a high quality product, the strength of Hero
technology and the Hero group's dynamism have helped HML scale new
frontiers and exceed limits.
In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing
Director, "We will continue to make every effort required for the
development of the motorcycle industry, through new product
development, technological innovation, and investment in equipment and
facilities and through and through efficient management."

MILESTONE
KEY MILESTONES OF HERO MOTO BIKE
Year Event
1983 Joint Collaboration Agreement with Hero Moto Corp, Ltd.,
1984 Hero Moto Corp. Incorporated
1985 First motorcycle "CD 100" rolled out
1987 100,000th motorcycle produced
1989 New motorcycle model - "Sleek" introduced
1991 New motorcycle model - "CD 100 SS" introduced 500,000th
motorcycle produced
1992 Raman Munjal Vidya Mandir inaugurated - A School in the
memory of founder
1994 New motorcycle model - "Splendor" introduced 1,000,000th
motorcycle produced
1997 New motorcycle model - "Street and 2nd manufacturing plant at
Gurgoan inaugurated
1998 2,000,000th motorcycle produced
1999 New motorcycle model - "CBZ" introduced Environment
Management System of Dharuhera Plant certified with ISO-14001
by DNV Holland Raman Munjal Memorial Hospital inaugurated -
A Hospital in the memory of founder Managing Director, Mr.
Raman Kant Munjal
2000 4,000,000th motorcycle produced Environment Management
System of Gurgaon Plant certified ISO-14001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single two-
wheeler model " Hero Moto Bike Passport Programmed" - CRM
Programmed launched

2001 New motorcycle model - "Passion" introduced One million
production in one single year New motorcycle model - "Joy"
introduced 5,000,000th motorcycle produced
2002 New motorcycle model - "Dawn" introduced New motorcycle
model - "Ambition" introduced Appointed Virender Sehwag,
Mohammad Kaif, Yuvraj Singh as Brand Ambassadors
2003 Becomes the first Indian Company to cross the cumulative 7
million sales mark Splendor has emerged as the World's largest
selling model for the third calendar year in a row (2000, 2001,
2002) New motorcycle model - "CD Dawn" introduced New
motorcycle model - "Splendor +" introduced New motorcycle
model - "Passion Plus" introduced New motorcycle model -
"Karizma" introduced
2004 New motorcycle model - "Ambition 135" introduced Hero Moto
Bike became the World No. 1 Company for the third consecutive
year. Crossed sales of over 2 million units in a single year, a global
record. Splendor - World's largest selling motorcycle crossed the 5
million mark New motorcycle model - "CBZ*" introduced Joint
Technical Agreement renewed Total sales crossed a record of 10
million motorcycles
2005 Hero Moto Bike is the World No. 1 for the 4th year in a row New
motorcycle model - "Super Splendor" introduced New motorcycle
model - "CD Deluxe" introduced New motorcycle model -
"Glamour" introduced New motorcycle model - "Achiever"
introduced First Scooter model from Hero Moto Bike - "Pleasure"
introduced
2006 Hero Moto Bike is the World No. 1 for the 5th year in row Fill it.
Shut it. Forget it

The joint venture between india's hero group and Hero Moto Bikecompany, 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 Moto Bikebecame 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 Moto Bike sold
millions of bikes purely on the commitment of increased mileage
Over 20 million Hero Moto Biketwo wheelers tread indian roads today. These
are almost as many as the number of people in finland , ireland and sweden put
together!
Hero Moto Bikehas consistently grown at double digits since inception; and
today, every second motorcycle sold in the country is a Hero Moto Corp. Every
30 seconds, someone in india buys Hero Moto Corp's top -selling motorcycle
splendor. This festive season, the company sold half a million two wheelers in a
single montha feat unparalleled in global automotive history.
Hero Moto Bikebikes currently roll out from its three globally benchmarked
manufacturing facilities. Two of these are based at dharuhera and gurgaon in
haryana and the third state of the art manufacturing facility was inaugurated at
haridwar, uttrakhand in april this year. These plants together are capable of
producing out 4.4 million units per year.
Hero Moto Bike's extensive sales and service network now spans over 3000
customer touch points. These comprise a mix of dealerships, service and spare
points, spare parts stockiest and authorized representatives of dealers located
across different geographies.
Hero Moto Bikevalues its relationship with customers. Its unique crm initiative
- Hero Moto Bike passport program, one of the largest programs of this kind in
the world, has over 3 million members on its roster. The program has not only

helped Hero Moto Bike understand its customers and deliver value at different
price points, but has also created a loyal community of brand ambassadors.
Having reached an unassailable pole position in the indian two wheeler market,
Hero Moto Bike is constantly working towards consolidating its position in the
market place. The company believes that changing demographic profile of india
, increasing urbanization and the empowerment of rural india will add millions
of new families to the economic mainstream. This would provide the growth
ballast that would sustain Hero Moto Bike in the years to come. As brijmohan
lall munjal, the chairman, Hero Moto Bike motors succinctly points out, "we
pioneered india's motorcycle industry, and it's our responsibility now to take the
industry to the next level. We'll do all it takes to reach there.''
HERO MOTO CORP'S MISSION
Hero Moto Corps 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 Moto Biketo new heights in excellence and
helps the organization forge a unique and mutually beneficial relationship with
all its stake holders.
HERO MOTO BIKE'S MANDATE
Hero Moto Bikeis a world leader because of its excellent manpower, proven
management, extensive dealer network, efficient supply chain and world-class
products with cutting edge technology from Hero Moto BikeCompany. 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 fuel-efficient, 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 Moto Corp, is the saga of team-work. We would
like to acknowledge the role played by our jv partners, Hero Moto
Bikecompany, all our business associates, shareholders and employees.
In the new millennium, we stand committed to innovation, to change, to
achieving breakthroughs to moving forward in the new century, while
retaining the values that have been like a beacon in this journey thus far.
2007
- Hero Moto Corp. has appointed Mr. Yutaka Kudo as Director and
Whole-time Director of the Company in the category of Executive
Director w.e.f. April 1, 2007.
- Hero Moto Bike is the World No. 1 for the 6th year in a row
- New 'Splendor NXG' launched
- New 'CD Deluxe' launched
- New 'Passion Plus' launched
- New motorcycle model 'Hunk' launched
- 20 million production milestone achieved
2008
- Hero Moto Bike has informed that Mr. Arun Nath Maira. has been
appointed as an Additional Director in the category of Non Executive and
Independent Director w.e.f. December 20, 2008 by the Board of Directors
by way of passing a resolution by circulation.
- Hero Moto Bike Haridwar Plant inauguration
- New 'Pleasure' launched
- Splendor NXG lauched with power start feature

- New motorcycle model 'Passion Pro' launched
- New 'CBZ Xtreme' launched
- 25 million production milestone achieved
- CD Deluxe lauched with power start feature
- New 'Glamour' launched
- New 'Glamour Fi' launched
2010
- Hero Moto Bike has appointed Mr. Ravi Nath as an Additional
Director in the category of Non Executive and Independent Director
w.e.f. October 14, 2010 by the Board of Directors by way of Passing a
resolution by circulation on October 14, 2010.
BOARD OF DIRECTORS
No. Name of the directorscategory of directorship
1 Mr. Brijmohan Lall Munjal
Chairman & whole-time director
2 Mr. Pawan Munjal managing director
3 Mr. Toshiaki Nakagawa joint managing director
4 Mr. Yutaka kudo whole-time director
5 Mr. Om prakash munjal non-executive director
6 Mr. Sunil kant munjal non-executive director
7 Mr. Masahiro takedagawa non-executive director
8 Mr. Takashi nagai non-executive director
9 Mr. Narinder nath vohra non-executive & independent director
10 Mr. Pradeep dinodia non-executive & independent director
11 Gen.(retd.) Ved prakash malik non-executive & independent director
12 Mr. Analjit singh non-executive & independent director
13 Dr. Pritam singh non-executive & independent director
14 Ms. Shobhana bhartia non-executive & independent director
15 Mr. Sunil bharti mittal non-executive & independent director

KEY POLICIES
AN ENVIRONMENTALLY AND SOCIALLY, AWARE
COMPANY
At Hero Moto Corp, our goal is not only to sell you a bike, but also to
help you every step of the way in making your world a better place to
live in. Besides its will to provide a high-quality service to all of its
customers, Hero Moto Biketakes a stand as a socially responsible
enterprise respectful of its environment and respectful of the important
issues.
Hero Moto Bikehas been strongly committed not only to environmental
conservation programmes but also expresses the increasingly inseparable
balance between the economic concerns and the environmental and social
issues faced by a business. A business must not grow at the expense of
mankind and man's future but rather must serve mankind.
"we must do something for the community from whose land we generate
our wealth."
A famous quote from our worthy chairman mr.brijmohan lall munjal.
ENVIRONMENT POLICY
WE at Hero Moto Bikeare committed to demonstrate excellence in our
environmental performance on a continual basis, as an intrinsic element of
our corporate philosophy.

TO ACHIEVE THIS WE COMMIT OURSELVES TO:
Integrate environmental attributes and cleaner production in all our
business processes and practices with specific consideration to substitution
of hazardous chemicals, where viable and strengthen the greening of
supply chain.
Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also controlling
our environmental discharges through the principles of "alara" (as low as
reasonably achievable).
Institutionalise resource conservation, in particular, in the areas of oil,
water, electrical energy, paints and chemicals.
Enhance environmental awareness of our employees and dealers / vendors,
while promoting their involvement in ensuring sound environmental
management.
QUALITY POLICY
Excellence in quality is the core value of Hero Moto Corp's philosophy.
We are committed at all levels to achieve high quality in whatever we do,
particularly in our products and services which will meet and exceed
customer's growing aspirations through: Innovation in products, processes
and services. Continuous improvement in our total quality management
systems. Teamwork and responsibility.
MISSION STATEMENT IN PURSUIT OF EXCELLENCE
We, at Hero Moto Corp, are continuously striving for synergy between
technology, systems, and human resources to provide products and
services that meet the quality, performance, and price aspirations of our
customers. While doing so, we maintain the highest standards of ethics
and societal responsibilities, constantly innovate products and processes,
and develop teams that keep the momentum going to take the company to
excellence in the new millennium".
WE CARE FOR ENVIRONMENT
A philosophy closest to Hero Moto Bikeis that which pertains to the
environment, which is why the company goes that extra step to ensure
that each one of the high technology 4-stroke Hero Moto
Bikemotorcycles meet the most demanding of pollution norms at every
level.

OBJECTIVE

Through the company has wide list goals to be achieved but the major
objective of the company has to achieve areas follows:-
1. To provide right product to right people at right time.
2. Price should be reasonable; by this every level of person can afford
the product.
3. To maximize the share holders value by customer value
enhancement.
4. Changes should be according to prospective customer
5. To provide delivery of standard product.
6. To provide value for money to there consumers.

MARKETING MIX STRATEGY
Product Mix



Product Variety Quality Design Brand Name Warranties Service Features


Price Mix



List Price Discount Allowances Payments
Periods
Credit Terms
Place Mix



Channels Coverage Assortments Inventory Transport


Promotion Mix



Sales Promotion Advertising Public Relations Direct Marketing



MARKETING MIX: -

Standardised Marketing Mix:
An international marketing strategy for using basically the same product,
advertising, distribution channels & other elements of the marketing mix
in all the countries of companys international market.
Adapted Marketing Mix:
An international marketing strategy for adjusting the marketing mix
elements to each international target market, bearing more costs but
hoping for a larger market share & return.
International Scenario
A two-wheeler is used as a personal/family vehicle or a goods carrier in the
enveloping countries, whereas it is confined to sports/racing (heavy
motorcycles) or short istance shopping (mopeds) in developed countries.
The world two-wheeler market is dominated by Japan. Japanese
manufacturers account for around 65% of the total two-wheeler
production in the world. However, production within Japan has been
declining due to lower domestic demand and shift in manufacturing base
outside the country. Japan is also the world's largest exporter of two-
wheelers in the world controlling around 75% of the world trade. Its
major markets are China, USA and Europe. In terms of player positions,
Hero Moto BikeCorporation, Yamaha Motors and Suzuki Motors
Corporation share the top three slots in the world two-wheeler market.
The table below shows the production and sales figures of motorcycles
and scooters in Japan during the past decade More than 50% of the
production in Japan is exported out of the country. This scenario contrasts
directly with the Indian scenario. In India, only about 15% of the
production in FY11 were exported

The Asian continent is the largest user of two-wheelers in the world. This
is due to poor road infrastructure and low per capita income, restrictive
policy on car industry.
The technology for two-wheelers is not as well developed as for car
industry. This is due to oligopoly between top five players in the segment,
compared to thirty manufacturers in the car industry.


THE HERO MOTO BIKE MISSION









1. Enhancing quality of life
The Hero Moto Bikegroup is committed to creating a better quality of life
for people everywhere and to furthering the interest of the society by
being a responsible corporate citizen.
2. Creating Happiness
We will bring happiness into every home, offering high consumer
durable vehicles at affordable prices, and comfort.
3. Achieving progress
We will pursue innovative technologies in the field of customer care
vehicles and energy, create product and services that will improve to
quality of life, realize the goals of the world community and protect the
environment
4. Sustaining growth
We will be a source of pride to our business associates by ensuring
mutual prosperity and growth through the implementation of forward
looking corporate strategies aimed at identifying opportunities and
responding intelligently to dynamics of change.
5. Pursuing Excellence
We will provide a conducive environment for enabling our employees to
develop their potential and make a significant contribution to the group
success.

PLACEMENT OF HERO MOTO BIKE
Hero Moto BikeLimited sells the motorcycle through a widely spread all India
networks of over 450 of dealers. The motorcycle can be serviced at the
authorized dealers or SSPs (Spare and Service points).
In the year 1996, Hero Moto Bikewas the first company to introduce Indias
first chain of automated services workshops. To expand the service network
further to smaller towns, the company has appointed Service extensions.

Hero Moto Bikegenuine spare parts are available from the dealers, SSPs and
the stockiest. The company provides good after sales service through its well-
established dealer network.
The company has a policy of three S, Single S for stockiest, Double S for
services and three SSS for sales.
The company is having about 460 of SSS, which deals in Sales, Service, and
Stock, 260 of SS, which deals in Service and Stock and 12 of S, which
exclusively deals in stocks.
The Network As On 31st March 2002 Is As Under: Dealers (3s_-Sales,
Service, Spares)-458, Ssps (2 S-Service And Spares)-256, Stockiest (Single
S-Spares)-12
The company has developed a unique distribution network, which has given it
a distinctive competitive advantage. The whole idea behind establishing this
vast distribution network is to reach the customer even in the remote areas.
The company has segregated the areas as Urban, Rural, and semi rural and has
appointed dealers in many of these areas, after seeing the potential. The
companys major thrust is the easy availability of all the models in every part
of the country.
The companys bikes are sold through the dealers and they are required to
provide proper infrastructure, Workshops, Facilities, and trained Personals.
The dealers are given targets and they are required to sell sufficient number of
vehicles to earn a return on investments. Regional offices are in constant touch
with these dealers.
Presently the company is having 8 regional offices in the country. The
regional offices constantly assist these offices as a kind of linkage between the
company and the dealer and the dealers. The sales and the marketing personals
at the regional offices are trained and encourage maintaining a cordial
relationship with various dealers on the basis of trust and understanding. The
companys service engineer and the other sales staff supervise all the facilities

at the dealer and the service outlet from planning the layout to the errection of
the specially designed benches and the tools. Infact all the possible efforts are
made by the company to make the dealers to become the part of the Hero
family and its culture.
The company has appointed fleet of more than 400 trucks from around 45
transporters to assist them in the delivery of vehicle. From the factory and
within the factory premises, the company has a good fleet of trucks and
trailers. The company to deliver the vehicle to the dealers showroom in the
gactory fresh condition uses these trucks and trailers. The cargos are loaded in
the trucks and the trailers and they are delivered at the stockyards of the
dealers in whichever part of the country they may be located. So the company
in this way delivers the motorbikes in the fresh factory conditions. By the time
the bike reaches our dealers they might have done hardly a coupler of
kilometers. The company believes the marketing efforts should go beyond
ensuring product availability.
The focus is therefore on a vast distribution network. In order to ensure the
customers a better quality service at the various stations, the company mounts
an effective training porograme in which all the mechanic, supervisory staff
and the other senior staff personnel participate.
The company is also planning to set up some of the fully equipped express
authorized highway. In these highways, one would see a Hero Moto
Bikedealer every 15-25 KMS.This concept is thought by the company with a
view to provide good after sales services to the customer. This exercise will
also check the company to check the use of spurious products, which
ultimately spoil the bike. The highways to be covered in this scheme are:
NEW DELHI-GWALIOR
NEW DELHI-CHANDIGARH
AMBALA-LUDHIANA
KOLKATTA-DHANBAD

The company has a dream to increase this figure of 458 dealers to 650 by the
end of 2003 and increase the figure of 256 service stations to 350 by the end of
the year 2003.The company is going by an expansion process.
The company is perhaps the second company after Maruti Udyog Limited to
implement a factory fresh concept. The company is the only company in the
two-wheeler segment having so much of vast distribution network. Hero Moto
Bikewill be adding 25 more dealers and 50service stations to build a network
of 575 dealership-cum-service points (including 400 dealerships) across the
country.
The level of investment in an automated Hero Moto Bikeservice station is
expected to be around Rs 10 lakh, apart from land and building. ``No dealer
has any problem in expanding business,'' says Tapan, Marketing manager.
``We've tied up with Citibank and Centurion to provide bill discounting
through our dealers. Consumer Finance: In order to focus on organized
consumer financing, Hero Moto Biketied up with Tata Finance a week ago.
This is Hero Moto Corp's second tie-up following Centurion, which is
accounting for around 3,000 bikes a month through 100 dealerships.
A thorough understanding of the fast-changing consumer behaviour, new
market segments and product opportunities along with sensitivity to changing
customer needs, form the core of Hero's marketing strategy and philosophy. At
Hero we essentially have a completely customer-driven approach. A nation-
wide dealer network comprising of over 3,500 bicycle dealers, 350 dealers for
mopeds and 225 franchise holders for motorcycles, ensures convenient access
to the Group's products across the country.
With a deep sense of belonging to the Hero fraternity, the Group's dealer
network has catalysed growth and acted as a strong bridge between the
customers and the Group.
Conventionally, very few Indian bicycle manufacturers were interested in
exports. However, the Hero Group's foray into the overseas markets pioneered

Indian exports in the bicycle segment as early as 1963. It was a move
prompted primarily by the need to be attuned to the global marketplace.
While initial exports were restricted to Africa and the Middle East, today more
than 50 percent of the Group's bicycle exports meet the demands of
sophisticated markets in Europe and America. This is primarily because of
appropriate product development and excellent quality that Hero offers. The
Group has undertaken a steady upgradation of technologies and there has been
diversifications and setting up of newer establishments to meet stringent
international standards. At the core of it all is a customer-centric scheme of
policies and production and the bottom line is to "Add Value while
Engineering Satisfaction.

PRODUCT STRATEGIES OF HERO MOTO BIKE
Hero Hero shifted its focus from catering to the fuel efficient conscious
consumer to try and occupy other segments of the motorbike market and
therefore the new product launches from Hero Moto Bikein the last three year
have been in this direction. The company has also upgraded some of its bikes
to stay in contention and to meet Euro emission norms. The new underlining
theme for the company One for everyone has led to the launching of new
products, which are as follows:
Street Smart: Hero Moto Bikeintroduced its Street Smart in 1997. The
company who were more inclined towards the scooters and who thought that
the scooters were more safer than the motorcycles, thus Hero Moto
Bikedecided to launch the Street Smart. The bike was built in such a way that
it resembled more like a scooters, than a motorcycle, but actually it is a
motorbike. I.e. it is a hybrid



Product Description (HERO MOTO BIKELtd.)
Hero Moto Bikehas launched the following motorbikes in the Indian
market.
HERO MOTO BIKE CD 100
HERO MOTO BIKE CD 100 SS
HERO SLEEK
HERO MOTO BIKE Splendor
HERO MOTO BIKE Street Smart
HERO MOTO BIKE CBZ
HERO MOTO BIKE Joy
HERO MOTO BIKE Passion
HERO MOTO BIKE Ambition
Hero Hero shifted its focus from catering to the fuel efficient
conscious consumer to try and occupy other segments of the motorbike
market and therefore the new product launches from Hero Moto Bikein
the last three year have been in this direction. The company has also
upgraded some of its bikes to stay in contention and to meet Euro
emission norms. The new underlining theme for the company One for
everyone has led to the launching of new products With the launch of
new motorbikes and various other motorbikes in the pipeline, Hero Moto
Corps strategy is to get into these segments of the motorcycle market
where they have not made in roads earlier.

PRICING STRATEGIES OF HERO MOTO BIKE
The company has a policy to price its product very competitively. In
todays world, one cannot has a skimming pricing says Mr. Tapan,
marketing manager, Hero Moto Corp. Necessarily the pricing policy is
completely a blend of two strategies i.e. Penetration and Skimming. It has

been the companys policy to provide the customers with value for
money-give more for less. We are the only company in the two wheeler
segment that is in the process of passing on the whole benefit of cost
advantage achieved as a result of the increased localization levels of upto
60% to the customers.
We are in the process of keeping our product increasing popular and
affordable. The company keeps telling its customers to think about
Quality rather than price. Further if one talks about the changes in the
price in the last three years, the prices have never been changed except
the budgets except once in APRIL 2011,when the company started off
with their celebration offer, and thus decided to sanctioned a discount
and curtail on every Model Rs 1001\-. The company is surely in a
business of delivering quality rather than price. For instance the Boxer,
which is of only 29,990 and is the cheapest bike of the industry. The
company gives importance to the quality rather than cheap products.
Well Hero Moto Bike has bikes at different price point but there is one
common thing that is they are priced at a premium of INR 2000- 3000
from the competitors and it seems their strategy is working fine with the
target customers as it is the largest seller of bikes in the Indian market
with a market share of 48 % .Customers are redy to shell out the extra
money because they believe and its fact that the fuel efficiency of the
bikes is much better than its competitors the different price points for
Hero Motors Limited are :
NAME PRICE
Dawn ------------------- 38,000
Splendor --------------- 47,000
Passion ---------------- 49,000
Cbz--------------------- 58,000-66,000

Thus we find that HML has bikes for every one for entry level customers
they have dawn which is a no frill attached product whose emphasis is on
mileage with performance .And for customers who like to have bike
which is good at performance and with descent looks they have Splendor
which is their fastest selling bike and account for half of the total sales.
Customers who are looking for style with performance can go for Passion
which is a huge success among the urban class as it is priced little bit
higher than splendor and the looks of the bike are astounding. For
customers who want style and power they have CBZ which is targeted
towards the premium segment and it was a runaway success initially but
is not a hot seller now due to some problems. Hero Moto Bikeis planning
to introduce few more models in years time in order to make their
portfolio of products more versatile. They are trying to introduce new
models and they are trying to introduce models at the premium segment
as it has high margins and the company feels that its the segment which
is will grow in the near future as the income of people will increase with
the change of life styles .HML also intend to introduce few models which
are economical in nature as they this segment provides the volumes to the
company. Hero Moto Bikestill wants to charge a price of premium as its
brand enjoys a high level of respectability and reliability among the target
customers as their products have already proved their mettle in the market
and enjoy high level of brand equity among the target customers. Hero
Moto Bikehas an advantage of large no of dealers and also economies of
scale which help them to absorb the costs to a great extent.






PROMOTIONAL STRATEGIES OF HERO MOTO BIKE
Hero Moto Bikerides safe
Hero Moto Corp's `Ride Safe and Good Rider' campaign is aimed at
communicating the philosophy of delivering safe products and promoting
good driving for the overall safety of the Hero Moto Bikecustomer.
Created by McCann Erickson, the ad-- Hero Moto Bikecares for your
safety--invited all Hero Moto Bikeowners to attend the Ride Safe
programme on October 27, 2011 at Delhi's India Gate lawns. This was the
first phase of the programme, where three instructors from Japan
demonstrated techniques of right driving. In the second phase, Hero Moto
Bikewill communicate the launch of the 4S concept (sales, service, spare
parts and safety) at Hero Moto Bikedealerships. The focus of the third
phase will be to promote the launch of the Hero Moto BikeSafety Riding
Promotion School, which will have riding simulators and safety riding
tracks
Hero Hero will take the riding programme-- where trained personnel will
give riding tips to bike owners-- to over 100 dealerships across 90 towns.
Promotion in this sector cannot be like that in the Fast Moving Auto pats
(Automobile) sector. The promotions in this sector are like 0% finance
schemes and other sort of things. The company takes the services of
many good and reputed advertising agencies like Reddifuusion, Lintas,
sachi & Sachi and others.
The company has also signed a kind of agreement with two celebrities
just now to be their brand ambassadors. Hero Moto Corp, a leading
manufacturer of motorcycles, has roped in film actor Hrithik Roshan and
captain of Indian Cricket team Sourav Ganguly as its brand ambassadors
for three years till 2003.

They would endorse the company products, attend corporate and brand
events and help promote its "we care" campaign comprising safety riding,
environment, and friendliness.
Hrithik and Ganguly said they were glad to be associated with Hero Moto
Corp. Hero has embarked upon an ambitious project to achieve sale of
one million bikes this year with a market share of 47 per cent. The
turnover would be in excess of Rs. 3000 crore. In October alone, 1,12,000
motorcycles have been sold, Compared to 66,063 units in the
corresponding period last year, the increase in sales is a phenomenal 69
per cent. Cumulative sales jumped up by 41.58 per cent to 5.72 lakhs
units during April-October as against 4.04 lakh units in the same period
last year.
At Hero Moto Bike, our goal is not only to sell the customer a bike, but
also to help him at every step of the way in making the correct riding
decisions. Assisting him in making the right judgments on the road, and
helping him to choose the right helmet and other riding equipment
And as bike handling requires know-how, skill, and rigorous mental
conditioning, we have put together certain safety tips and suggestions that
will enhance the riding comfort. Last but not the least, it is always
important to remember - a good rider is a safe rider.
Hero Moto Bikeis enhancing the Advertising &Promotion budget by
around 35 per cent from Rs 41 crore in 1999-2000. Apart from
concentrating on mainstream Splendor-- the world's largest selling bike--
and upscale CBZ motorcycles, Hero Moto Bikehas identified ``soft areas''
like services and spares parts for the purpose of intense communication.
The creative account of Hero Moto Bikerest with big names like
Hindustan Thompson Association, Lintas, Sachi and Sachi and so on.
Hero Moto Bikeis also planning a major campaign to re-launch the
restyled step-thru Street Smart. While customer references-- and not

media strategy-- are expected to support the CD brand sales, Hero Moto
Bike will look at social areas -- like civic issues, association with Non
Government Organizations, contribution to greener causes-- for corporate
communications.
The corporate campaign will be largely complemented by on-ground
initiatives under the umbrella brand of ``We Care'', incorporating
activities in the arena of community services, safety and services
programmes, tree-plantations and environmental-friendly projects.
In line with Hero's worldwide, safety riding programme, this fiscal Hero
Moto Bike Motors Limited will take the riding programme-- where
trained personnel will give riding tips to bike owners

SPORTS & ENTERTAINMENT
In sports promotions, Hero Moto Bike will stickto cricket (following title
sponsorship of the World Cup last year, it has signed a three-year contract
for Hero-Hero-Salve Challenger Trophy) andgolf (it will continue with
Hero-Hero Masters Golf).
Moreover, after a successful association with movies-- last year it signed
Pyar Mein Kabhi Kabhi starring Dino M and Twinkle-- Hero Moto
Bikeis in theprocess of identifying title sponsorships of youth-centric
movies. Says Sobti, In terms of media exposure, we are looking at
sports, moviesand news. Niche channels are also worth putting your
money on.'' For theCBZ, this year it is planning to run commercials in
youth channels like MTV;Discovery and Star Movies.
In sports promotions, Hero Moto Bikewill stick to cricket, it has signed a
three-year contract for Hero-Hero-Salve Challenger Trophy) and golf (it
will continue with Hero-Hero Masters Golf). Moreover, after a successful
association with movies-- last year it signed Pyar Mein Kabhi Kabhi
starring Dino M and Twinkle-- Hero Moto Bike is in the process of

identifying title sponsorships of youth-centric movies. In terms of media
exposure, the company is looking at sports, movies, and news. For the
CBZ Motorcycle, this year it is planning to run commercials in youth
channels like MTV; Discovery and Star Movies.
The Target: Services will be a major differentiator,'' says Sobti.``The
campaigns will highlight the high level of services and
automatedfacilities at our dealerships.'' Hero Moto Bikeis expecting a 30-
35 per centgrowth in spare parts revenue, which accounted for Rs 100
crore in 1999-2000.In the new fiscal, Hero Moto Bikeis aiming to take
the sales of Splendor from40,000 a month to 50,000 a month; CBZ from
4,500 a month to 5,000; and a10-15 per cent growth in CD and CD-SS
brands up from 25,000 a month now. There-launched step-thru Street
Smart is expected to account for around25,000-30,000 in the first year.
Services will be and is the differentiator. The campaigns will highlight
the high level of services and automated facilities at the companys
dealerships. Hero Moto Bikeis expecting a 30-35 per cent growth in spare
parts revenue, which accounted for Rs 100 crore in 1999-2000.In the new
fiscal, Hero Moto Bike is aiming to take the sales of Splendor from40,
000 a month to 50,000 a month; CBZ from 4,500 a month to 5,000; and
10-15 per cent growth in CD 100 and CD100-SS brands up from 25,000 a
month now. Supporting all of the Hero Moto Corp's growth projections
are amulet-pronged strategy including a thrust on a customer relationship
programme, major increase in advertising and promotion (A&P)
spending, expansion of dealership network, and a focus on organized
consumer financing.





DEALERSHIP EXPANSION

Hero Moto Bike will add 25 more dealers and 50service stations to build
a network of 575 dealership-cum-service points(including 400
dealerships) across the country.
The level of investment in an automated Hero Moto Bike service station
isexpected to be around Rs 10 lakh, apart from land and building. No
dealerhas any problem in expanding business,'' says Sobti. We've tied up
withCitibank and Centurion to provide bill discounting through our
dealers.''Consumer Finance: In order to focus on organised consumer
financing, HeroHero tied up with Tata Finance a week ago. This is Hero
Moto Corp's secondtie-up following Centurion, which is accounting for
around 3,000 bikes a month through 100 dealerships.
We've got a good internal rate (based on IRM), which is standard
acrossthe country,'' says Sobti. ``These finance companies bring
refreshinglycustomer-friendly focus to our organisation.''
With Tata Finance, Hero-Hero's reach will be extended to over
150dealerships.
Also, Tata Finance is expected to add 2,000 bikes a month. Presently,
consume financing, including non-organised financing, contributes
around 20,000 Hero Moto Bike bikes a month. Gauging Consumer: Hero
Moto Bike is chalking out a customer relationship programme, which is
expected to be established in the next three years. We're discussing with
Result McCann,'' says Sobti.






SALES PROMOTIONS

Hero Moto Bikeregularly has promotions running for its dealers as well
as customers in order to ensure that there is a interest among the target
customers abut the company and its products. Normally Company
participates in road shows, Sponsors college festivals, promotes eco
friendly initiatives, Have festive Season offers, and sometimes price
discounts to attract the attention of the people. These promotions are
targeted mainly on youngsters as they are the primary buyers of bikes.
The company launches financial schemes as Zero % finance schemes in
collaboration with different banks so that customers can pick bikes in
easy installments. The effect of these promotions can be understood from
the fact that 35 % of bikes are sold through this medium.

INTRODUCTION OF MARKET RESEACH

Marketing is a restless, changing dynamic field, since 1920 many
important and dramatic changes have taken place in marketing.
Thousands of new products, including those of entire new industries such
as automobiles, electronic and computers, textiles, footwear etc. have
appeared on the market.
Though al these occur through a gradual procedure of change but
pronounced shift in the orientation of times from production to marketing
moreover, the role of marketing itself has been changing. The various
crises of the 1970s material and energy shortage, inflation, economic
stagnation, high unemployment, dying industries have forced the
marketing executives to assume a wide range of responsibilities that have
grown in complexities.

Due to the many challenges offered by the environment, the companies
executives are becoming more driven in their strategy decision making
for making sound marketing decisions in response to this requirement of
formalized means of acquiring many ways has reached a stage of
maturity i.e, marketing research.
Market research has become a great tool for these companies to get the
feedback and formulate strategies accordingly in todays eager to know.
What consumer perceives about various brands for the perfect selection
of target market. In an era where competitive pressures have make the
cost of failure prohibitive, research has become crucial in getting the
market plan right. As the project was globalization of Hero Moto Corp
I found that the company is making its marketing mix strategies by
considering the consumer at the central point because, now a days, the
consumer has become more aware and is no more a novice. Thats why
marketing research has become an important tool in the hand of marketer
to understand the versatile nature of ever changing consumer behavior as
depicted by the marketing research, as refined by American Marketing
Association.
Is the function which links the consumer, customer and public to the
marketer through the information used to identify and refined marketing
opportunities and problems, generate, refine and evaluate marketing
actions: monitor marketing performance and improve understanding of
marketing as a process.
Marketing research specifies the information required to address these
issues designs the method for collecting information managers and
implements the data collection process, analysis the results and
communicates the finding and their implications.



ADVERTISING

The advertising includes both print and television media. The company
uses the services of Lintas, Sachi, and Sachi but Hindustan Thompson
Association deals main of the advertising. Besides of giving the
commercial advertising the company also releases the advertisement,
which are of public interest and especially the company releases the
social advertising as to how to go about the safe driving. The company
keeps on sponsoring different Programes and various kinds of games like
the company every year sponsors Golf Championship. c The company
has also recently decided to increase their adverting budget for the current
year as they have to release more advertisements in public interest and the
company has to re-launch the Street Smart model once again which was a
tremendous failure in the early stager of its launch.
Sale Promotion-The company does sale promotion for both dealers and
the customers. The company is currently offering the promotion to their
customers as they are offering a discount of 1001.This discount is the
company sanctioned discount and the dealers may also offer some kind of
discount due to competition to attract customers and to increase the sale
figures. The company also offers a kind of promotion to the dealers; The
Company is having a slab system as a tool for promotion to the dealer.

Advertising & Promotion:

Hero Moto Bike is enhancing the A&P budget by around 35 per cent
from Rs 41 crore in 2010-2011. Apart from concentrating on mainstream
Splendor-- the world's largest selling bike-- and upscale CBZ
motorcycles, Hero Moto Bikehas identified ``soft areas'' like services and
spares parts for the purpose of intense communication.

While customer references-- and not media strategy-- are expected to
support the CD brand sales, Hero Moto Bike will look at social areas --
like civic issues, association with NGOs, contribution to greener causes--
for corporate communications.
The corporate campaign will be largely complemented by on-ground
initiatives under the umbrella brand of ``We Care'', incorporating
activities in the arena of community services, safety and services
programmes, tree-plantations and environmental-friendly projects.
In line with Hero's worldwide, safety riding programme, this fiscal Hero
Moto Bike will take the riding programme-- where trained personnel will
give riding tips to bike owners-- to over 100 dealerships across 90 towns.

PERSONAL SELLING-

As a part of sales promotion, the company also does personal selling to
the corporate sector. This is done in case of institutional selling. In the
beginning only the CSD canteens were included but now even Multi
National Companies also form a part of the institutional selling
Heros corporate week-The week in December 2001 was observed as the
corporate week. This week was observed in the year 201 to spread
awareness among the corporate employees about the company and its
range of products. In this week various vendors participated as well as
various dealers participated. This platform was also used as making and
building more cordial relations among the employees and the dealers.





COMPETITORS OF HERO MOTO BIKE

BAJAJ
The Bajaj Group came into existence during the turmoil and the heady
euphoria of India's freedom struggle. Jamnalal Bajaj, founder of the Bajaj
Group, was a confidante and disciple of Mahatma Gandhi, and was
deeply involved in the effort for freedom. The integrity, dedication,
resourcefulness and determination to succeed which are characteristic of
the Company today, are often traced back to its birth during those long
days of relentless devotion to a common cause.
Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in
1942, at the age of twenty-seven. Putting the Nation before business, he
devoted himself to the latter only after India achieved independence in
1947. But when he did so, he put his heart and soul into it. Within a short
while, he not only consolidated the Group, but also diversified into
various manufacturing activities, elevating the Group to the status it
enjoys till this day
Rahul Bajaj today heads the Group. He has been the Chief Executive
Officer of Bajaj since 1968 and is recognized as one of the most
outstanding business leaders in India. As dynamic and ambitious as his
illustrious predecessors, he has been recognized for his achievements at
various national and international forums. Bajaj is currently India's largest
two and three-wheeler manufacturer and one of the biggest in the world.
Bajaj has long left behind its annual turnover of Rs.72 million (1968), to
currently register an impressive figure of Rs.42.16 billion (US$ 936
million).



TVs- Ltd:
They have a vision of being a highly profitable and socially responsible,
leading manufacturer of high value, environmentally friendly, lifetime
personal transportation products for customers in global markets and to
provide fulfillment and prosperity for employees, dealers and vendors

Suzuki
TVS Suzuki broke out of the bottoming formation with a rise in volume
and went into a major uptrend. The stock is well above its rising 30
WMA and its earlier intermediate bottoms, and hence, the major trend
of the stock is up. The relative strength line for the stock has moved
past its zero line, indicating that the stock is outperforming the indices.
Investors ust hold on to the long positions in the stock while more long
positions in the stock must be added after the next intermediate
correction.
The intermediate trend of the stock is still up and investors will have to
wait for some more time before the stock actually goes into an
intermediate downtrend. Keep a close watch at the stock and investors
holding the stock must continue to do so. Trading volumes are less, and
hence, investors must pick small quantities.

LML
LML is also in a major uptrend like the other stocks in this sector, as the
stock moved past its earlier intermediate top and its 30 WMA in the
current intermediate rise. The stock is still in an intermediate uptrend
and is currently moving sideways. It could drop into an intermediate
downtrend on a close below 19. The breakout by the stock was not
accompanied by a rise in volume and this is not a very bullish sign.
Thus, investors must look at other stocks in this sector which are also in

a major uptrend and are more stronger. The relative strength line has
moved above its zero line and could fall back if the stock goes into an
intermediate downtrend. Investors must always pick up the strongest
stocks in the strong sector, and hence, must avoid this stock, even
though it is in a major uptrend.

KINETIC MOTORS
Kinetic Engineering Ltd., founded in the year 1970, is the leading
manufacturer and exporter of 2-wheelers. Born of the vision of the late
Shri H. K. Firodia, Kinetic Engineering Ltd., it has produced useful, heart
- winning products for over two decades. KEL manufactures a wide range
of Mopeds, Scooters and Motorcycles that are very popular in the country
and are well recognized for their fuel economy, quality and reliability.
KEL has 3 manufacturing plants at Ahmednagar Pitampur (Indore) an
Goregaon (Pune) with the capacity to manufacture 4 lakh vehicles per
year. Their well endowed technologically advanced manufacturing set up
have enabled them to reach high quality standards. The company also
exports these vehicles to countries like USA, Canada, Sweden, Latin
America, Denmark and the Middle East
An agreement has recently been reached between Yamaha Motor Co.,
Ltd. (YMC) and its joint venture partner in India, Escorts Limited
(Chairman and Managing Director: Mr. Rajan Nanda. Location:
Faridabad, suburbs of New Delhi) under which YMC will acquire all of
the 26% of the stock presently held by Escorts Limited in the two
companies' motorcycle manufacturing and marketing joint venture,
Yamaha Motor Escorts Ltd. (YMEL).
The aims of this move to make Yamaha Motor Escorts a 100% YMC
subsidiary are to increase the overall speed of managerial and business
decisions, to improve product development capabilities and production

efficiency, while also strengthening the marketing organization. Plans call
for the change in the company's name and other procedures to be
completed by the end of June.
Ever since the establishment of the first technical assistance agreement
between the two companies in 1985, YMC and Escorts Limited have built
a cooperative relationship dedicated to the manufacture and sales of
Yamaha brand motorcycles in an environment of growing motorcycle
demand in the Indian market. In November of 1995, the two companies
established the joint venture company Escorts Yamaha Motor Limited,
based on a 50-50 capital investment. In June of 2005, that investment
ratio was changed to 74% for YMC and 26% for Escorts Limited and
YMC assumed managerial control of the company with the name being
changed to YMEL and undertook numerous measures to build the
company's motorcycle manufacturing and marketing operations.
In addition to YMC acquiring Escorts' 26% of YMEL stock, the
company's name will be changed to Yamaha Motor India Private Limited
(YMI) and concerted efforts will be made to heighten its competitiveness
in the Indian market and promote the spread of the Yamaha brand with
target themes of developing products with greater appeal and a
distribution network that can respond more quickly to user needs.
Furthermore, YMC will work to develop YMI as an exporter of business
type motorcycles to neighboring countries and other markets such as
Africa and Latin America, and also as a production base that can assume
a variety of roles in Yamaha's global manufacturing network.
Now that YMI has become a 100% YMC subsidiary, the introduction of
several new models is planned, and it is our goal to increase annual
production to 350,000 units in the fiscal year 2005 and to 550,000 units
by the fiscal year 2010.

SWOT ANALYSIS: HERO-HERO

STRENGTH
Technological support from Hero
Moto Corp.
The company has a deeply
penetrated dealer network (640
including service station)
The company provides good after
sales service through its well-
established dealer network.
The company enjoys a huge market
share and well established brands
like Splendor, CD100, CBZ,
etc.(Splendor is worlds largest
selling motorcycle)
WEAKNESS
Hero Moto Bike depends on Hero
for new products and this is a big
weakness considering it from the
post 2005 point of view. The
reason being that the technological
tie-up between Hero Moto
Bikeand Hero Moto Bikewill cease
to exist.
Exports has never grown beyond
4%
The company doesn't have a
product catering to Rs. 25,000 - Rs.
30,000 segment.
The company imports about 31%
of its spares requirements. This
makes the company vulnerable to
the import policies of the
government. It also exposes them
to the exchange rate risk.

OPPORTUNITY
The motorcycle segment is
growing at the rate of 33%, which
provides a great opportunity for the
company to cash on. Also it is
experiencing a shift in the
customer preference from 4-stroke
mobikes to 2-stroke mobikes. This
again provides an excellent
opportunity to Hero Moto Bike to
leverage its market share and
market leadership for sustained
profitability.

Weak competition in 125 cc &
200(+) cc segment

THREATS
The technical collaboration with
Hero is valid only till 2005 and this
is a serious threat as they have
been dependant on Hero for
technology. Also Hero has set up
its 100% subsidiary in India, which
shall start producing motorcycles
from 2004. This will further
increase the competition.
Threats from Chinese companies
which are going to launce Hi-Tech
and Low cost products
The company has plans to foray into
the scooter segment, which can also be
a major threat for the future prospects
of the company.

RESEARCH METHODOLOGY

Properly conduct of market survey is a required tool for top
management in decision making in order to conduct a useful and
objective market research. A research methodology only then the studies
conduct can be properly elaborated and commented on so I have conduct
research and it include some sub-point and first one is market research.
Marketing research is the function which links the consumer,
customer and Public to the market through information-information used
to identify and define marketing opportunities and problems, generate,
refine and evaluate marketing actions, monitor understanding of
marketing as a process.
Marketing Research Is The Systematic Design Collection, Analysis
And Reporting Of Data And Findings Relevant To A Specific Marketing
Situation Facing The Company.
Research design and choice
Descriptive research gives an account of frequency or the
characteristics of some of the variables where casual research help in
determined cause and effective relationship.
The study seeks to find out the consumer buying behavior it
purchasing Hero Honda two-wheeler motorcycle. The study also aims of
future trends in two-wheeler motorcycle new innovation.
Research Design is the plan structure and strategy of investigation
concerned so as to obtain answer to research questions and to control
variances.
Research design is classified into three types:
(1) Exploratory Research

(2) Descriptive Studies
(3) Causal Designs
In these three categories, I have selected descriptive study method
because certain group such as age, sex, education level, occupation or
income, a descriptive study may be necessary.
Sample design
In the sampling plan the basic and important question is who is to
be survey, it is not possible to ask question to every person in the market.
I have conducted my Survey particularly in the Bareilly city and
the survey is related to Hero. When research has decided to carry out field
survey, it has to be decided whether it is to be census of sample survey.
There are two types of sampling method:
A) Statistical Methods:
In this method there are various categories
Random Sampling
Stratified Random Sampling
Disproportionate Random Sampling
Multi-Stage Sampling
Area Sampling

B) Non-Statistical Methods:
Convenience Sampling
Judgment Sampling
Here, I have used Random Sampling to know the Hero Motor Corp.





DATA ANALYSIS & INTERPRETATION

AGE PERCENTAGE (%)
14-18 20
18-25 60
25-35 15
ABOVE 35 5



MOST OF THE PEOPLE ARE OF AGE GROUP 18-25.










20%
60%
15%
5%
14-18
18-25
25-35
Above 35

2. PURPOSE OF PURCHASE OF BIKE?
OFFICE GOING 39%
COLLEGE GOING 25%
MAINTAINS FRIENDS 14%
OTHER PURPOSE 22%

39% PEOPLE USE BIKE FOR OFFICE PURPOSE WHILE 25% FOR COLLEGE
GOING.
39%
25%
14%
22% Office going
College going
Maintains Friends
Other purpose

3. MARKET SHARE OF BIKE?

HERO MOTO BIKE 40%
BAJAJ 32%
SUZUKI 12%
YAMAHA 11%
OTHERS 5%

40% WHICH IS THE HIGHEST SHARE IN MARKET IS OF HERO MOTOR
CORP.












40%
32%
12%
11%
5%
Hero Honda
Bajaj
Suzuki
Yamaha
Others

4. BRAND AWARENESS MEDIUM?
TV 38%
NEWSPAPER 25%
WORD OF MOUTH 23%
DEALER EFFORT 9%
OTHERS 5%

38% OF AWARE NESS COMES FROM TV THEN IT COMES TO
NEWSPAPAPER
38%
25%
23%
9%
5%
TV
Newspaper
Word of mouth
Dealer effort
Others

5. PURCHASE INFLUENCER

QUALITY & FEATURE OF PRODUCT 15%
PRICE 10%
EASE OF AVAILABILITY 15%
BRAND IMAGE OF THE PRODUCT 24%
AFTER SALES SERVICE 32%
VALUE OF MONEY 4%

32% BUY PRODUCT JUST BECAUSE THEY GOT GOOD ATER SALES
SERVICE THEN IT COMES TO THE BRAND IMAGE










15%
10%
15%
24%
32%
4%
Quality & feature of product
Price
Ease of availability
Brand image of the product
After sales service
Value of money

6. PHYSICAL FEATURES THAT EFFECTS MOST?
LOOKS 35%
BODY BUILDS 25%
STYLE 22%
ROBUSTNESS 18%

LOOKS MATTERS A LOT WHILE PURCHASING BIKE THEN ITS STYLE
AND BODY BUILDS
35%
25%
22%
18%
Looks
Body builds
Style
Robustness

7. PAYMENT MODE FOR PURCHASES
ONE TIME PAYMENT 15%
FINANCIAL OPTION 65%
EXCHANGE OFFER 12%
OTHERS 8%



65% OF PEOPLE BUY BIKE THROUGH FINANCE.













15%
65%
12%
8%
One time payment
Financial option
Exchange offer
Others

8. TECHNOLOGICAL FEATURES EFFECT BUYING?
POWER - ECONOMY MODE 22%
MILEAGE 48%
FOUR STROKE ENGINE 18%
OTHER 12%

48% PEOPLE BUY FOR BETTER MILEAGE.


22%
48%
18%
12%
Power - economy mode
Mileage
Four stroke engine
Other

CONCLUSION

The motorcycle industry had a perceptible shift from a buyer market to
the seller market with the variety of choices. Now the customer even has
a plethora of choices to choose the best-suited requirement. All the
players, weather be it HML, Yamaha or any other will have to compete
on the basis of many things like attributes, reliability and so on.
There is no doubt in the fact that Hero Moto BikeCompany rules the
motorcycle industry and has a good brand name, but the company will
certainly have to initiate some efforts.
The company has the highest market share in the motorcycle industry
and maintaining such a good share will pose a challenge to the company.
The company is doing very well in the business.
The two-wheelers market has had a perceptible shift from a buyers
market to a sellers market with a variety of choices.
The segments, motorcycles have witnessed capacity additions in the last
one-year and it will continue in the upcoming period as and when Hero
opens a local subsidiary.
The motorcycle segment will continue to lead the demand for two-
wheelers in the coming years. Motorcycle sales is expected to increase by
20%yoy as compared to 1% growth in the scooter market and 3% by
moped sales respectively for the next two-years
The four-stroke scooters will add new dimension to the two-wheeler
segment in the coming future. Perhaps, the moped segment will be the
worst affected due to Y2K emission norms applicable from April 2002
as not many of the present models confirm to the norms



RECOMMENDATION

There are no two opinions that the automobile industry is faring very well
in the Indian market since the early 90s.However it can perform better in
the market of it
o The first recommendation is obviously about the customer care.
Presently the company has a customer relation department but it
has to be made stronger and more service provider to help the
customers.
o The distribution network should be made stronger so that the
customers dont feel dissatisfied for services, sales, and stocks.
o This is a age of customer delight and the company should not
forget that customer is the king
o Everywhere there is a game of production and volumes, the
company that produces more can save more and prices could be
made more competitively
o The company should always go for quality
o The R & D base should be made stronger as the level of indigestion
should come down.










SUGGESTIONS


Size and weight of bike should be match with their C.C.
company should follow world wide strategies for increasing their
global revenue.
Bike should have stepping facility. Which may help during critical
situation.
Company should provide promotional schemes to the customers.
All the protective parts of wheels should made of plastic and leg
guard also be strong.
Now Company is required to recover the faith of customers
towards the brand image.
Company should improve the mileage of the Bikes.
Prices of the Bike must be set as it can be approved by major part
of the population.
Fuel tank portion can be changed.











LIMITATIONS


In my survey I found some limitations are as follows:
Time was limited.
Material on internet is very limited.
Some customers were in hurry so they were not given proper
opinion.
Foreign data is not available on the net.
Bikes are exporting to very limited country

QUESTIONNAIRE


1. Which of the following best describe your age group?
a) 14-18 b) 18-25 c) 25 to 35 d) above 35

2. What is the size of your family (Including children)?
a) Single b) 2 to 3 c) 3-4 d) above
4

3. Which of the following best identifies you house hold annual
income?
a) Below 60,000 b) 60,000 to 1 Lakh
c) 1 to 2 lakh d) Above 2 lakhs

4. For which purpose you purchase the motorbike?
a) College going b) Office going
c) Maintain friend circle d) Other purpose

5. Which of following companys motorbike do you have ?
a) Bajaj b) HERO MOTO BIKE
c) Suzuki d) Yamaha
e) Any other

6. How come you know about that brand? (can make more than one)
a) T.V. b) Newspaper
c) Dealer effort d) World of mouth
e) Internet f) Any other


7. Rate the following in order of influence you purchase a bike?
a) Brand image of the product
b) Price
c) After sales service
d) Quality and feature of product
e) Ease of availability
f) Value for money

8. Which option you prefer when you purchase a bike ?
a) One time payment
b) Financial option
c) Exchange offer
d) Any other.


















BIBLIOGRAPHY

WEBSITES:

www.hero.com
www.heromotorcorp.in

BOOKS:

Marketing Management by Philip Kotlar
Research Methodology by C.R. Kothari