Preface

Amongst the business related entries in the book of world records (including the Guinness Book), is the name of Hero Honda. This is an Indian company that manufactures the largest number of two-wheelers in the world. The Hero Honda motorcycle is a common sight in many countries in the world. This honour to our country has been created by the great visionary and promoter of the Hero Honda Company Dr. Brijmohan Lall Munjal Brijmohan was a true visionary. The Hero Honda CD 100 model was one of the first Indian bikes to have a four-stroke engine (which has low emission and high fuel efficiency) which became a huge success in Indian automobile market . He was awarded Business Leader of the Year by Business Baron in 1998, "Entrepreneur of Year" by Business Standard in 2002, "Entrepreneur of the Year" by Ernst & Young in 2001. His greatest tribute carne when Brijmohan was honoured with the prestigious Padma Bhushan. It was a true testimony of his vision and leadership. He was also conferred a Doctorate (D Litt-Honoris Causa) by the Banaras Hindu University, Varanasi. It is one of the most prestigious Universities of India

LIFE HISTORY

Unlike his father and grandfather who did not have the means to study, he wanted to gain knowledge and use it to make a mark in his life. When he was just six years old, he went to a wellknown Gurukul school, one that teaches various subjects with a foundation of Indian values, to gain admission. The Principal was impressed with young Brijmohan's resolve, and agreed to admit him into his school. This was a significant achievement for Brijmohan. He made the best of it. He was enthralled with subjects revolving around finance and economics. This proved to be a sound foundation for Brijmohan's tremendous career and entrepreneurship. After his education, Brijmohan's family moved to India. They were forced to do so because of the partition that was created between India and Pakistan in 1947. They moved to Ludhiana (in Punjab), where Brijmohan and his brothers wanted to start their own business. They set up a small unit manufacturing bicycle components. The business grew as the brothers put in tremendous hard work. Eventually they set up a factory to manufacture bicycles calling it the Hero Cycles. The idea and motivation to manufacture bicycles came from Brijmohan. He was keen to create a mode of transport that was affordable by all classes of people. Apart from the business motive, he also wanted the multitude of Indians affected by partition to be able to purchase a vehicle that was durable and at the same time affordable. This ideology

has been a guiding force to the Hero Honda group to this day, one which has taken it to insurmountable heights. Slowly but steadily, the company grew, eventually they moved into the manufacture of motorized vehicles, which were beginning to become popular in the Indian roads. This Joint Venture was a runaway success from the beginning for two reasons. Firstly, the products launched were state of the art, with value for money for the buyer. Secondly, Brijmohan ensured that the partnership reached no roadblocks, and went on smoothly for a long time. Brijmohan was a true visionary. The Hero Honda CD 100 model was one of the first Indian bikes to have a four-stroke engine (which has low emission and high fuel efficiency). Most other motorcycle manufacturers went in for the two stroke engine. They eventually had to abandon these when the government passed stringent laws on banning two-stroke engines, as they were highly pollutant. Brijmohan's vision paid off and his company grew at a rapid Pace. Today, Hero Honda is a highly profitable company with revenues in excess of US$2 Billion. Hero Hondas products are exported to more than a dozen countries. As the company's fortunes grew, so did Brijmohan's accolades. He was awarded Business Leader of the Year by Business Baron in 1998, "Entrepreneur of Year" by Business Standard in 2002, "Entrepreneur of the Year" by Ernst & Young in 2001. Brijmohan is also the country's highest paid executive, his earnings being in excess of Rs.11 Crores in 2003-2004.

In spite of all this, Brijmohan regards human values more than anything else. He attends family functions of his employees, maintains a good relationship with his joint venture partners, and continues to create shareholder value for his company. He attributes his success to the hard work and determination of his family members and employees and the blessings of God.

PRE entrepreneurship business

B.M. Munjal's journey began in 1944 at the age of 20. Brij Mohanlall along with his three brothers, Dayanand (32), Satyanand (27) and Om Prakash (16) moved from his birthplace Kamalia in Pakistan to Amritsar. The brothers started supplying components to the local bicycle business. After partition in 1947, the family was forced to move to Ludhiana. The town of Ludhiana was already a major hub of the Indian bicycle business and an important textile center. The Munjals slowly spread their bicycle component distribution network in other parts of the country and became one of India's largest bicycle parts suppliers. In 1952 Munjals made a shift from supplying to manufacturing. They started manufacturing handlebars, front forks and chains. In 1956, the Punjab state government announced the issue of twelve new industrial licenses to make bicycles in Ludhiana. The Munjal brothers cashed on this opportunity. Helped by the Punjab government financing of Rs 600,000 to supplement their own limited capital resources, the Munjals set up Hero Cycles. Hero Cycles was registered as a 'large-scale industrial unit' and it initially produced 7,500 units per year.

Soon Hero Cycles started giving well-established players such as Raleigh, Hind Cycles, and Atlas Cycles a run for their money. The hero cycle was comparatively cheaper and was sturdy and reliable. It gave the customers value for their money. In January 1984, Japan's Honda, the world's largest manufacturer of motorcycles, elicited interest in collaborating with the Hero Group to manufacture motor cycles in India. An agreement was signed and on 13 April 1985, the first Hero Honda motorbike was rolled out. Today, the company is the largest manufacturer of motorcycles in the world.

Need for Entrepreneurship-

BIRTH OF HERO GROUP

The idea and motivation to manufacture bicycles came from Brijmohan. He was keen to create a mode of transport that was affordable by all classes of people.

Apart from the business motive, he also wanted the multitude of Indians affected by partition to be able to purchase a vehicle that was durable and at the same time affordable. This ideology has been a guiding force to the Hero Honda group to this day, one which has taken it to insurmountable heights.

Slowly but steadily, the company grew, eventually they moved into the manufacture of motorized vehicles, which were beginning to become popular in the Indian roads.

Brijmohan wanted to ensure that there was no compromise on quality, and the Indian consumer would get complete value for money. Therefore he entered into a joint venture with the Japanese two-wheeler giant, the Honda Motor Company. Thus, the company called Hero Honda Motors Ltd was born.

Hero Honda - way to success

1 Integrated Marketing Communication Hero Honda 2 leader in sales 3 Cohesive Approach 4 Hero Honda - In the making 5 Right Cost 100 cc motorcycle Fuel efficient & Affordable

6 Hero Honda-The Market Leader Over 56 percent of market share in 2009 Over 25 million consumer base Over 3500 touchpoints 7 Fuel efficient to marketing-led organization Advertising campaigns Product refreshes Brand health Integrated marketing communication -way to success 8 Emotional Branding 9 Segmentation and subbranding Splendor NXG Glamour Karizma ZMR 10 Bike for all Rs.37000.00 to Rs.95000.00 11 Youngistaan 12 Just 4 her..... 13 Fill It Shut It Forget It 14 500 men 3 two months long waves

additional sale of 15,000-16,000 motorcycles through each wave Har gaon, har angan 15 Advertising Discarded product categorization on the basis of engine size Product differentiation was the key Avoided customer confusion of products Karizma (premium segment) comes with the punch line, Always game The ad for the premium segment Hunk doesnt talk of speed or power at all the focus on the looks even while standing The CBZ Extreme comes with the promise, Thinking is such a waste of time 16 Types of Advertisements Celebrity Advertisements 17 Types of Advertisements Print and Outdoor Advertisement 18 Types of Advertisements Covert Advertisement Mujhe Kuch Kehana hai Border Trophy Man Of The Match Hero Honda Bike 19 Types of Advertisements Public service advertisements DESH KI DHADKAN 20 Types of Advertisements Broadcast advertisemensts HERO HONDA RODIES HERO HONDA SAREGAMAPA 21 Personal selling Wide price range. Each product with multiple optional features. Experience speaks. First six service free CBZ Gavaskar

Once in a year free check up for hero honda bikes from authorised comapany service station. Good resale value. Various schemes for goverment and miliatry employees. 22 Print Advertisements 23 Outdoor Advrtisements 24 Personal Selling Wide price range. Each product with multiple optional features. Experience speaks. First six service free Once in a year free check up for hero honda bikes from authorised comapany service station. Good resale value. 25 Sales Promotion Large product portfolio starting from 37k to 95k Consistent launch of variants in the same models Wide range of colors available in each category Vast network of more than 2100 committed Dealers and Service outlets spread across the country Festive offers- Rs 1000 discount with free accidental insurance 26 Sales Promotion Hero Honda Passport Program Cash incentive program 27 Various schemes for goverment and miliatry employees. 28 29 Sales Promotion...contd Pleasure promotional features 6 free services 2 years warranty 9 shades of color Dual tone Auto start 30 CSD

Choose bike of your choice at a considerable lesser price i.e. at CSD price anywhere in India Who can book?

All commissioned officers / staff - either retired or currently serving in the Indian Army, Navy or Air Force - can avail of this facility 31 Finance and insurance 32 33 Insurance bank Direct Selling Helpful staff 2100 authorized dealers Concentrated on brand rather than offering discountsHero Honda hasn't been offering discounts since two years. Now with the competition heating up, would we see discounts coming back? For us competition never cooled down. There have been launches by our competitors, some successful, some not. I don't see competition dying down, and we stay true to our strategy -- no discounting of products. A consumer's primary consideration is the brand, which is the biggest differentiator. They will not pay attention to smaller considerations like Rs 1,000 off or a better interest rate etc. 34 Press Release New Delhi, October 21, 2008: Hero Honda Motors Ltd (HHML), the world's largest two-wheeler company for seven consecutive years, today firmly reiterated its undisputed leadership in the domestic two-wheeler market. Hero Honda passes on excise duty cut benefit to customers reduces prices on all models, ranging from Rs. 1000/- to Rs. 2400/-sales 265,431 units of two-wheelers in February Hero Honda has already rolled out its festive season initiatives, with the launch of four new models the all-new "Passion Pro" and three refreshes of its existing models - new CBZ X-treme, a selfstart version of Splendor NXG and the refreshed Pleasure. Press Release Celebrating its 25th year, Hero Honda released an innovative music video in the month of September. Titled "Hero Honda Dhak Dhak Go Hero Honda recently won two very coveted awards - "The Most preferred Brand of twowheelers" award at the recent CNBC Awaaz Consumer Awards 2008, and the "NDTV Profit Business Leadership Award".

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BUSINESS IMPLEMENTATION ( HEROs answer to competition)

Business heads at the two-wheeler company were constantly flooded with data they needed to interpret and analyze. This led to Hero Hondas Business Intelligence (BI) implementation. They boiled down on the SAP Business Intelligence (BI) Data Solution to ensure that the right information was provided to the right decision makers at the right time in order to make the right business moves. Hero Hondas BI implementation was primarily accomplished by in-house teams. The technology requirement to meet these business needs was identified through regular business interactions which discussed the pain points. Based on these and looking at the business goals and requirements, it was felt that a BI implementation would be very appropriate.

All IT projects have their share of change management, technical and other issues. Some of the problems faced by Hero Honda during this BI implementation were: Usage of applications: People were so used to Excel formats that they wanted to see the same interface in the BI solution. Effort was involved in changing their mindset and getting them used to the fact that this was an on-line reporting and analytical system with various drill down and other query featuresnot a mere collation of data from multiple sources that was being circulated in a particular format. This was resolved with the help of extensive training and open communication between the BI implementation team as well as the users.

Timely data updates: In some cases, data was not updated in time in the systems feeding information to the data warehouse. This discipline was brought in by intervention of the senior management, as broadcasting information was started from the system at a particular time.

Change in user requirements leading to changes in data model: Modification of the existing data model posed certain challenges depending on the extent of changes. A trial and error method was employed to finalize these changes to meet Hero Hondas requirements from the BI implementation.

Security of information: There were concerns raised that after getting collated information would be shared across the organization. However, these were mitigated when role-based authorization and access was brought in.

After resolving these hassles, the BI implementation was managed by Hero Hondas in-house team, while technical support was received from the vendor. Even though no RoI figures were made available, the above noted objectives were accomplished through the BI implementation at Hero Honda Motors. BI is now integrated across the organization and users are quite reliant on this system now. In the near future, Hero Honda plans to enhance the system based on user feedback. They also plan to work on enhancing analytical reports along with dashboard capabilities and adding analytics derived from their Dealer Management System. It is clear that Hero Hondas BI journey has only just begun.

Social response to Hero honda

During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage.

In today world customer is the king irrespective of whatever the business may be ,wherever the operations may be .A good business organization is known by its strong customer loyalty, which turns to become a unified family.

Study on 100cc bikes among the dealers and customers with special reference to hero Honda dealer and loyalty of customers towards the bike was done . The objective of the study was to find out the dealers and customers opinion about the 100cc bikes with

Special reference to hero Honda dealer to understand how market fluctuations affect their strategic decision. The research methodology was descriptive in nature encompassing a sample of 200customers for in-depth analysis

It was observed that 80%of the respondents are interested to purchase Hero Honda motor vehicle .are in the age group of 18-35. A large part of respondents with majority of 60% are satisfied with the availability of spare part and remaining 40% says no. It was observed that the 92% resplendence are either highly satisfied are just satisfied and remaining 8% are dissatisfied. Different models Hero Honda vehicles can be introduced for ladies, with better comfort, speed and power, so that it can cater to the changing tastes of women.

==Awards and recognition==

Awarded Businessman of the Year in 1994 by business magazine "Business India" Received the National Award for outstanding contribution to the Development of Indian Small Scale Industry in 1995. In 1999 Featured in Most Admired CEO List of the magazine "Business Barons". Received The Distinguished Entrepreneurship Award from The PHD Chamber of Commerce and Industry in 1997. Xavier Labour Relations Institute (XLRI), Conferred Sir Jehangir Ghandy Medal for Industrial Peace in 2000. Featured as Ernst and Young Entrepreneur of the year in 2001. Received The Lifetime Achievement award for "Management" from All India Management Association in 2003. Banaras Hindu University, Varanasi conferred him with a Doctorate; degree of "Doctors of letters" Honoris Causa in October 2004. Awarded "Padma Bhushan"in March 2005 for his contribution to Trade and Industry in 2005.

Split between Hero and Honda

The rising differences between the two partners that gradually emerged as an irritant. Differences had been brewing for few years before the split over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts business with Honda's new fully owned subsidiary Honda Motors India (HMI).[2]

Arrangement
As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would eventually be thrown open for private equity participation and those in the fray include Warburg Pincus, Kohlberg Kravis & Roberts (KKR), TPG, Bain Capital and Carlyle.[3]

Future of the Joint

Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as future models.[4]