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Study Of The Distribution Channel Used By Hero

MotoCorp And Commercial Aspects And Implications

of Various Taxes And Duties Incurred While Reaching

To The End Consumer

Team Members:

Sree Shivam (01)

Shan Prabhakaran (22)

Nishant Sinha (25)

Rahul Ranjan (40)

Purvi Tulsyan ()

Akanksha Tiwari ()

Pranay Jha (57)

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Introduction:

Through this project we would try to understand how Hero MotoCorp reaches out

to its end consumers. This would comprise a detailed study about the distribution

channel used by the company along with the commercial aspects and implications

of various taxes and duties.

About Hero MotoCorp:Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter

manufacturer based in New Delhi, India.The company is the largest two wheeler manufacturer in India.

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.

Objectives:

Study of distribution channel used by Hero MotoCorp. (From itsmanufacturing units to the end customer). What type of distribution channel

does the company uses (Is it a direct dispatch or is there any middlemen

involved).

What are the criteria for appointing the dealers and distributors.What are the constraints and strengths of the existing distribution channel.To understand various agreements and deals done with the distributors such

as Bank Guarantee.

To investigate the implications of the various taxes and duties on the cost ofthe vehicles throughout the distribution channel.

http://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Scooter_%28motorcycle%29http://en.wikipedia.org/wiki/New_Delhi,_Indiahttp://en.wikipedia.org/wiki/Dharuherahttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Haridwarhttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Haridwarhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Dharuherahttp://en.wikipedia.org/wiki/New_Delhi,_Indiahttp://en.wikipedia.org/wiki/Scooter_%28motorcycle%29http://en.wikipedia.org/wiki/Motorcycle

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Methodology:

Data and information will be collected from the following sources: Authorised Hero MotoCorp dealer (Shyama Automobiles). Personal interviews with the Mr Raju Chaudhary (Owner) Secondary data from Newspapers, Internet and Business magazines.

Some of the major aspects of the distribution channel that will beinvestigated will include:

Transportation Warehousing Inventory Management Criteria for appointing the dealer Constraints and strengths of the existing distribution channel

Commercial aspects and implication of various taxes/duties levied by theCentral, State and the Local bodies would be investigated.

Finally the implications of these taxes/duties on the distribution channel willbe studied and everything that happens from the company to the end

consumer would be inferred.

Benefits of the study:

The study would give a proper understanding of the distribution channelinvolved in the automobile industry. (Right from the factory to the buyer)

The study would give a hands on information on how a deal is truck with adealer and what are the nitty-gritty of the whole structure.

Familiarization and understanding of the various taxes/duties levied.How the different taxes/duties affect the price of a single manufactured unit

till it reaches the end customer.