UNIVERSITY OF MUMBAI’S
ALKESH
DINESH MODY
INSTITUTE FOR
FINANCIAL
&
MANAGEMENT
STUDIES 1
SYBMS SEM IV
NAME OF THE STUDENT ROLL SIGNATURES
NOS
AHSAN KHAN 45
AJAY DHUTAWALE 11
ARUN IYER 28
ANAS KHAN 48
VIKAS GUPTA 25
VIVEK KAMBLE 39
Submitted to :- Prof. Sushmita Mam 2
Contents
• Company Profile
• Sayings …………
• Growth Strategies
• Rural Marketing Strategies
• Corporate & Social Responsibility
• Challenges in Rural marketing
• Conclusion
•
•
• “Hero” is the brand name used by the
Munjal brothers in the year 1956 with
the flagship company Hero Cycles.
• It is a joint venture between India's
Hero Group and Honda Motor
Company. It established in 1984 as
the Hero Honda company, India.
• During the 1980s, the company
introduced motorcycles that were
popular in India for their fuel
economy and low cost.
Contd………………….!
• Hero Honda has three manufacturing
facilities based at Dharuhera and Gurgaon in
Haryana and at Haridwar in Uttarakhand.
These plants together are capable of
churning out 3.9 million bikes per year.
• Hero Honda's has a large sales and service
network with over 3,000 dealerships and
service points across India.
• "The majority of India lives in rural
areas and the government is pumping
in a lot of money through various
programmers. Hero Honda is focusing a
lot on rural markets. Going forward, a
substantial industry growth is expected
to come from these markets.”
- Pawan Munjal, MD and CEO,
Hero Honda Motors Limited, in May
2009
• “The penetration of two-
wheelers in rural areas is
estimated to be less than 10 per
cent and around 25 per cent in
urban areas. This makes us
optimistic about the market."
• - Anil Dua, Senior Vice
President for Sales and
Marketing, Hero Honda Motors
Limited, in January 2009
Growth strategies
• Concentrating On
Rural Market
• Fuel-efficient Vehicles
With Low Maintenance
Advertisements
TVC ADDS….! X-change melas
Radio ….! Magazines…!
Adds……!
Foreign Collaborations To
Assist In New Design And
Production Process.
Organize Free
Service Camps
Hero Honda offers cheapest
motorcycles in India, cost
between 38,000 to 48,000.
•Hero Honda has accepted by people because its strong
brand image and product quality.
PUNCH LINE
• The punch line of Hero Honda gives
a emotional touch to customers
“DESH KI DADKHAN”.
Har Gaon, Har Aangan (every
village, every courtyard.)
Contd………!
• 1,00,000 of 6,00,000 villages
in country.
• Penetration in Rural Market-
10%
• 500 Sales Representatives to
meet potential customer
(local people as sales
executives )
• Average of 16000 bikes per
month. ( sales )
Contd…..!
• These representatives have
been given work tasks and
not sale targets - they need
to meet potential
customers and opinion
leaders in villages.
• To strengthen their network
in rural areas, the company
started sales, servicing and
spare part outlets in small
towns and villages across
India.
focusing on upgrading the models
• The most successful product
is SPLENDOR in rural
market and the company
kept on focusing on
upgrading the models so,
then they later came up with
SPLENDOR PLUS and
SPLENDOR NXG, which
provided extra features and
the consumers were
satisfied.
Collection of data
• Under the rural vertical, they started collecting
a lot of data at rural touch points;
many of their dealers are
now meeting,
-SARPANCHES,
-HEADMASTERS,
-AANGANWADI
- WORKERS
and other opinion makers
to understand the rural
consumer better.
The company conducts,
• SKITS
• DRAMAS
To give some social message and attract the crowd
and Advertise its products………..!
Conted…….
• Once you earn the villagers
loyalty (and they are known for
their brand loyalty), it will be
difficult for competitors to take
away your customers.
STAKEHOLDER TIES AT THE
GRASSROOTS
• Hero Honda Motors takes
considerable pride in its
stakeholder relationships,
especially ones developed at the
grassroots. The Company believes
it has managed to bring an
economically and socially backward
region in Dharuhera, Haryana, into
the national economic mainstream
Integrated Rural Development Centre
• Centre has been set up on 40 acres of land along the Delhi-Jaipur
Highway. The Centre-complete with wide approach
• -ROADS,
• -CLEAN WATER,
-AND EDUCATION FACILITIES
• for both adults and children
• The Foundation has adopted various villages located within vicinity of
the Hero Honda factory at Dharuhera for integrated rural development.
RAMAN MUNJAL VIDYA MANDIR
The Raman Munjal Vidya Mandir
began with three classes (up to class II)
and 55 students from nearby areas.
It has now grown into a modern Senior
Secondary, CBSE affiliated co-
educational school with over 1200
students and 61 teachers.
The school has a spacious playground,
an ultra-modern laboratory, a well-
equipped audio visual room, an activity
room, a well-stocked library and a
computer centre.
RAMAN MUNJAL MEMORIAL HOSPITAL
Multi-specialty hospital equipped with
the
RAMAN MUNJAL
MEMORIAL HOSPITAL
I.latest diagnostic
II.surgical technology.
It provides healthcare to the
RURAL POPULATION in and around
Dharuhera,
ACCIDENT AND TRAUMA
VICTIMS driving along the Delhi-
Jaipur highway.
Raman Munjal Sports Complex
• Complex has
• basketball courts,
• volleyball courts,
• hockey and football grounds are
used by the local villagers.
• In the near future, sports
academies are planned for volley
ball and basket ball, in
collaboration with National Sports
Authority of India.
Adult Literacy Mission
• launched on 21st September, 1999
• villages of Malpura, Kapriwas and Sidhrawali
• The project started with a modest enrolment
of 36 adults.
• Hero Honda is now in the process of imparting
Adult Literacy Capsules to
• another 100 adults by getting village heads and
other prominent villagers to motivate illiterate
adults.
Marriages of underprivileged girls
• Marriages are organized
from time to time,
particularly for girls from
backward classes, by the
Foundation by providing
financial help and other
support to the families.
Rural Health Care
• Besides setting up a modern
hospital, the Foundation also
regularly provides ,
• DOORSTEP HEALTH CARE SERVICES
to the local community.
• FREE HEALTH CARE and MEDICAL
CAMPS are now a regular feature in
the Hero Group's community
outreach program
Challenges …..
• The rural consumer values old
customs and tradition. They do
not prefer changes.
• The Infrastructure Facilities
- Roads,
- warehouses,
- communication system,
- financial facilities are inadequate
in rural areas.
- Physical Distribution bacame
Costly
Contd
• The price its competitors are
also becoming the threat.
For example: bajaj auto’s
platina is priced at 38,115.
• The literacy rate is low in
rural areas as compared to
urban areas.
• This again leads to problem
of communication for
promotion purposes.
• Limited Dealership :-
• The dealerships in rural areas is
limited because of which the
customer has to go to near by city to
buy the product.
• Spare Parts :-
• of Hero Honda are costlier than other
companies spare parts, so there is
problem for rural people to afford.
WHY COMPANY CHOOSE RURAL MARKET
• Hero Honda has worked out a major expansion
strategy for the rural markets and is planning to
strengthen retail financing to support the
initiative that could lead to setting up of its own
finance arm.
• Pawan munjal, MD of Hero Honda, told TOI that
rural market would be a special focus area for the
company as it is looking at new growth areas to
maintain sales momentum in a shrinking market.
"We have created a special ‘rural vertical' to push
growth and this would spearhead our expansion
in the rural market,' Munjal said.
contd
• India's largest two wheeler company Hero Honda
Motors is spreading its wings to capture the
commuting bikers' imagination in rural India, after
witnessing flat sales growth in 2007-08.
• The two wheeler market leader plans to cover
100,000 of the 600,000 villages in the country by the
end of this financial year under a campaign named
Har Gaon, Har Aangan (every village, every
household).
CONCLUSION
• Most of the Hero Honda Bikes are purchased
by young generation 18 to 30 because they
prefer stylish looks and rest of the models of
Hero Honda are purchased more by daily
users who needs more average of bikes than
looks.
• Hero Honda is considered to be most fuel-
efficient bike on Indian roads.
• Service & Spare parts are available
throughout India in local markets also.
contd
• While buying a motorcycle,
economy is the main consideration
in form of maintenance cost, fuel
efficiency.
• Hero Honda started growing in rural
market rapidly with its add
campaign and promotion strategies
in rural market.
Thank
You..!
