hero honda - motorcycle
DESCRIPTION
Hero honda - MotorcycleTRANSCRIPT
![Page 1: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/1.jpg)
Future Strategy for Hero without Honda
Hero
![Page 2: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/2.jpg)
Hero Honda Motors (HHML) World's largest two-wheeler manufacturing company
Three manufacturing facilities: Dharuhera
Gurgaon
Hardwar
Incorporated in 1984 as a joint venture (JV): Honda Motor Company of Japan
Hero Group India
Hero Munjal brothers brand for their flagship company Hero Cycles Ltd.
Both parties owned 26% each in the JV and the technology sharing agreement is renewed every 10 years.
![Page 3: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/3.jpg)
Industry:
Two Wheelers: 76.23 %
Society of Indian Automobile Manufacturing 2011
![Page 4: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/4.jpg)
Two Wheeler market:
Motorcycle leading
![Page 5: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/5.jpg)
Major Players Hero Honda Bajaj Auto TVS Yamaha Suzuki Enfield
New Harley Davidson
Total Executive class
Economy segment Premium segment
![Page 6: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/6.jpg)
![Page 7: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/7.jpg)
Separation
Reasons: R & D capability sharing by Honda Pollution norms Royalty being paid by Hero to Honda: 4-5% Honda Motors
• Separate brand increasing market share
Refusal of Hero Honda to merge the spare parts business with HMI
![Page 8: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/8.jpg)
SWOT• Strength
•Good Quality•Leader 52%•Extensive Dealer network 550•3500 service centers•Strong marketing
Opportunity•Exports market:• Not explored yet as JV
constraint•No Royalty: 4-5%
Weakness•R&D: Dependent on Honda•Capacity constraint: 5.2million•Financial weakness: Low cash as heavy dividend•No overseas market
Threat •Market competition: • Honda, Bajaj
•R&D : Pollution norms
![Page 9: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/9.jpg)
Stakeholders Suppliers:
350 component suppliers
Connection with the Munjal family but supplying parts to Honda as well
Honda started looking for new supplier base
Distributers: Unique intangible resources that it has; superior brand image & reliability
perception of its brand is the outcome of these intangible & tangible key assets
Key would be the close relation based on trust and long term relationships
![Page 10: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/10.jpg)
Future strategies Product Branding
Splendor
Passion
Karizma
Already started work with JWT marketing communications
Corporate Branding Hero Cycle: May have negative impact
Separate as subsidiary with separate brand name
![Page 11: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/11.jpg)
Marketing focus: Major Sports events
Targeting young consumers
Quality Image: Huge investment required for image as quality producer or transfer of
image
International presence: Sponsor/Participate Moto – GP
Global Branding
![Page 12: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/12.jpg)
Build Indigenous Research & Development 3 years for capability development
In-house Develop indigenous products Scale up Hero Global Design
Possible Technological tie-up or Acquisition MV Augusta – Italy Megelli motorbikes- UK
![Page 13: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/13.jpg)
Global markets Huge potential
Bajaj upto 30% of sales
Major markets: African continent
South East Asia
Middle East
Establish channel partners Distribution Marketing
![Page 14: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/14.jpg)
Possible Impact on industry Market
Increased Competitiveness
Price war or Variant flooding
Consumer More options
Better quality
Past experience Bajaj + Kawasaki : Doing well (Still together for premium segment)
TVS + Suzuki: TVS prospered, Suzuki struggling
![Page 15: Hero honda - Motorcycle](https://reader033.vdocuments.site/reader033/viewer/2022061221/54bd66624a7959b14a8b4598/html5/thumbnails/15.jpg)
Thank You