rural marketing of hero honda

8/7/2019 Rural Marketing of Hero Honda

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UNIVERSITY OF MUMBAISUNIVERSITY OF MUMBAIS

ALKESHALKESHDINESH MODYDINESH MODY

INSTITUTE FORINSTITUTE FORFINANCIALFINANCIAL

&&MANAGEMENTMANAGEMENT

STUDIESSTUDIES1


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NAME OF THE STUDENTNAME OF THE STUDENT ROLLROLL

NOSNOS

SIGNATURESSIGNATURES

AHSAN KHAN 4545

AJAY DHUTAWALE 11

ARUN IYER 28

ANAS KHAN48

VIKAS GUPTA 25

VIVEK KAMBLE 39

2

SYBMS SEM IV

Submitted to :- Prof. Sushmita Mam


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Contents

Company Profile

Sayings

Growth Strategies

Rural Marketing Strategies

Corporate & Social Responsibility

Challenges in Rural marketing

Conclusion


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Hero is the brand name used by theMunjal brothers in the year 1956 withthe flagship company Hero Cycles.

It is a joint venture between India'sHero Group and Honda MotorCompany. It established in 1984 asthe Hero Honda company, India.

During the 1980s, the companyintroduced motorcycles that werepopular in India for their fueleconomy and low cost.


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Hero Honda has three manufacturingfacilities based at Dharuhera and Gurgaon in

Haryana and at Haridwar in Uttarakhand.

These plants together are capable ofchurning 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.

Contd.!


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"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


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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 Presidentfor Sales and Marketing, Hero Honda

Motors Limited, in January 2009


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Growth strategies

Concentrating On

Rural Market

Fuel-efficient Vehicles

With Low Maintenance


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Advertisements

TVC ADDS.!

Radio .!Magazines!

X-change melas


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Adds!


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Hero Honda offers cheapest

motorcycles in India, cost

between 38,000 to 48,000.


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Hero Honda has accepted by people because its strong

brand image and product quality.


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PUNCH LINE

The punch line ofHero Honda gives

a emotional touch to customers

DESH KI DADKHAN.


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Har Gaon, Har Aangan (every

village, every courtyard.)


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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!


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Contd..!

These representatives have

been given work tasks andnot 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.


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focusing on upgrading the models

The most successful product

is SPLENDOR in ruralmarket and the company

kept on focusing onupgrading the models so,

then they later came up with

SPLENDOR PLUS and

SPLENDOR NXG, whichprovided extra features and

the consumers were

satisfied.


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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.


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The company conducts,

SKITS

DRAMAS

To give some social message and attract the crowd

and Advertise its products..!


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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.

Conted.


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STAKEHOLDER TIES AT THE

GRA

SSROOTS 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 sociallybackward region in Dharuhera,

Haryana, into the national

economic mainstream


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Integrated Rural Development Centre

Centre has been set up on

40acres 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.


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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 SeniorSecondary, 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.


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RAMAN MUNJAL MEMORIAL HOSPITAL

Multi-specialty hospital equipped with

the

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

MEMORIAL HOSPITAL


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Raman Munjal Sports Complex

Complex has

basketball courts,

volleyball courts,

hockey and football grounds

are used by the local

villagers.

In the near future, sportsacademies are planned for

volley ball and basket ball, in

collaboration with National

Sports Authority of India.


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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.


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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.

Marriages of underprivileged girls


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Rural Health Care

Besides setting up a modernhospital, the Foundation also

regularly provides ,

DOORSTEP HEALTH CARE SERVICESto the local community.

FREE HEALTH CARE and MEDICAL

CAMPS are now a regular feature inthe Hero Group's community

outreach program


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Challenges ..

The rural consumer valuesold customs and tradition.

They do not prefer changes.

The Infrastructure Facilities

- Roads,

- warehouses,

- communication system,

- financial facilities areinadequate in rural areas.

- Physical Distribution bacame

Costly


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Contd

The price its competitors arealso becoming the threat.

For example: bajaj autos

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.


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Limited Dealership :-

The dealerships in rural areas islimited because of which the

customer has to go to near by city

to buy the product.

Spare Parts :-

ofHero Honda are costlier than

other companies spare parts, so

there is problem for rural people to

afford.


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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 ofHero Honda, told TOI thatrural 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.


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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

namedHar Gaon, Har Aangan (every village,

every household).


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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 ofHero 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.


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contd

While buying a motorcycle,economy is the main consideration

in form of maintenance cost, fuel

efficiency.

HeroHonda started growing in rural

market rapidly with its add

campaign and promotion strategies

in rural market.


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Thank

You..!

rural marketing of hero honda

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