A Study: Hero MotoCorp

Topics: Marketing, Honda, Motorcycle Pages: 5 (1247 words) Published: October 12, 2013

SYNOPSIS

PERCEPTION OF CUSTOMER REGARDING THE SALE PROMOTION TECHNIQUE OF HERO MOTO CORP

SUBMITTED BY :
BHOPINDER KUMAR Introduction

Hero MotoCorp (BSE: 500182, NSE: HEROMOTOCO) formerly Hero Honda is a motorcycle and scooter manufacturer based in India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. COMPANY PROFILE

“Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program. The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016-17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmation where the factories would be built.

SALES PROMOTIONS

Sales Promotions consist of many devices aimed at generating active Customer response within a short period of time. Interestingly, most of the effort has been receiving an increasingly large share of the advertising/Promotion budget, particularly for Promotion oriented toward the trade. Coupons and Promotions play a large role on the web as well.Over 50percent of both first time and repeat buyers were influenced by either coupons or free shipping. Promotion competes with advertising for bud genital so provides a different approach to influencing sales. In the case of advertising, the basic approach is to create or increase a desire on the part of the Customer for the product itself. In contrast, most Promotion simplicity assumes the level of desire for the product is fixed and tries to "close the deal” by providing incentives to purchase. This is, of course, an oversimplification. "A get them while supplies last" ad focuses on immediate response, and Promotions, Involving free samples aim at generating repeat business. Nonetheless, Promotions, many of which involve temporary price reductions, are seen as a form of marketing effort that is more aggressive and oriented toward immediate results. In reality, one if the few ways product managers can obtain a short run change in sales or market share is...
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