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VS
Demographic Segmentation
MODELMAKE
ENTRY DELUXE PREMIUM
BAJAJ KRISTAL(100)CT(100)PLATINA(100)CV(100)DISCOVER(100)
PLATINA(125)XCD(125)DISCOVER(125)DISCOVER(135)
PULSAR(150)PULSAR(180)PULSAR(200)AVENGER(200)PULSAR(220)
HERO HONDA CD100(100)CD100ss(100)CD DAWN(100)CD deluxe(100)CD deluxe-ss(100)SPLENDOR(100)PASSION(100)PASSION PRO(100)
GLAMOUR(125)GLAMOUR F1(125)SPLENDOR +(100)SPLENDOR NXG(125)Super SPLENDOR(125)PASSION +(100)AMBITION (133)AMBITION (135)
ACHIEVER(150)CBZ(150)CBZ Xtreme(150)HUNK(150)KARIZMA(223)
Gender Based Segmentation
Pricing
PRICEMAKE
ENTRY SEGMENT DELUXE SEGMENT PREMIUM SEGMENT
HERO HONDA 34,000 - 45,000(8) 41,000 - 58,000(8) 60,000 - 75,000(5)
BAJAJ 32,000 - 40,000(5) 43,000 - 52,000(4) 60,000 - 87,000(5)
Targeting
Brand Positioning
Youth Centric Programmes
• Your Subtopics Go Here
BCG-MATRIX
Sl No. SBU
Market share of
Hero Honda (SBU)
Market share of largest
competitor
Relative market share
Market growth
rate
Quadrant in which the SBU
lies
1 Motorcycles 53.8% 27.5%( Bajaj )
1.95 19.89 % STAR
2 Scooters 12.8 % 55 % (Honda)
0.23 12.36 % Question Mark
GE Matrix- Motorcycles
Factors Underlying Market Attractiveness
Factors Weight Rating
(1 –5)
Value =
(Weight * Rating)
Reasons
Annual market Growth rate
0.25 4 1.0The Annual market growth rate of Hero Honda motor cycles is 11%
Overall market size 0.25 4 1.0 The overall market size is 69,15,700
units for 2008-09.
Historical Profit Margin
0.15 4 0.6
Market Rivalry 0.20 2 0.4Highly competitive Market with Bajaj,
Yamaha, TVS, HMSI, Suzuki as the key Players.
Demand Variability 0.15 4 0.6Highly consistent demand. Very low
demand variability ranging between 3-3.5 lakh units in a financial year.
Total 1.0 3.6
Factors Underlying Market Strength
Factors Weight Rating
(1 –5)
Value =
(Weight * Rating)
Reasons
Market share 0.15 4 0.60 The Market share of Her Honda is 59%
Brand Image 0.15 4 0.60 25 Years of market “Trust & reliability”
Pricing 0.25 4 1.00 Product Range – 34,800 to 75,700
Product quality 0.2 3 0.60 Assurance of Quality by giving 3 Years Warranty and 6 Free services
Research & Development
0.25 2 0.50 Hero Honda’s R&D expenses accounts for 2.7% of its net sales and
90% of it goes towards paying Royalty and Technology fees to its
Technology partner Honda.
Total 3.30
Mar
ket
Att
ract
iven
ess
Strong Medium Weak
Lo
wM
ed
ium
Hig
hBusiness Strength
5.00 1.002.333.67
5.00
3.67
2.33
GE Matrix- Scooteritte
Factors Underlying Market Attractiveness
Factors Weight Rating
(1 –5)
Value =
(Weight * Rating)
Reasons
Annual market Growth rate
0.30 4 1.20The overall Market Growth rate is 12%
Overall market size 0.30 3 0.90 The market size is 11,80,000 Units for 2008-09
Historical Profit Margin
0.10 3 0.30
Market Rivalry0.20 4 0.80 High competition from Honda having a
market share of 55%
Demand Variability0.10 3 0.30 Very Low Demand variability with a
sale of Approx. 12000 units a month.
Total 1.0 3.50
Factors Underlying Market Strength
Factors Weight Rating
(1 –5)
Value =
(Weight * Rating)
Reasons
Market share 0.15 2 0.30 Pleasure has a market share 12.8%.
Brand Image 0.15 3 0.45 Hero Honda pleasure has gained acceptance among the Women
commuters.Pricing 0.25 3 0.75 The Price of pleasure is 36,400 as
compared to 41,800 of Honda Activa. Product quality 0.20 3 0.60 Hero Honda’s prime focus is Quality
Assurance
Research & Development
0.25 1 0.25 Very Less Development in the product range offered.
Total 1.0 2.35
Your Topic Goes HereM
arke
t A
ttra
ctiv
enes
s
Strong Medium Weak
Lo
wM
ed
ium
Hig
hBusiness Strength
5.00 1.002.333.67
5.00
3.67
2.33
Ansoff Matrix
MARKET PENETRATION
• Pro-biking showrooms• Promotional
campaigns• Advertising through
media• Bajaj Auto Finance
Targeting foreign markets
INDONESIA
NIGERIA
SRI LANKA
BANGLADESH
COLOMBIA
MEXICO
PRODUCT DEVELOPMENT• Discover 100cc • Bajaj 220cc• Kawasaki Ninja• Gearless Scooter
launch
Bajaj Auto is also planning to move into the gearless scooter segment.
DIVERSIFICATION• Four-wheeler diversification Bajaj has entered into a joint
venture with Renault and Nissan & are planning to launch a car next year
• Bajaj Finance Bajaj Auto Finance earlier a part
of Bajaj Auto has de-merged from it and is now a part of Bajaj Finance. Bajaj Auto Finance Ltd offers attractive loans for purchase of new Bajaj vehicles.
SWOT Analysis
STRENGTHSBrand nameAggressive promotion and effective advertisingFuel efficient bikesLow in cost as compared to other competitors (entry level bikes)Better technologyCountry wide presence of quality service centersStrong presence in rural marketStrong distribution networkHigh resale valueAfter-sales service
WEAKNESSESBecause of the joint Venture between Hero and Honda, Hero Honda cannot sell its bikes in countries where Honda has a presence (Nepal, Bangladesh and Colombia) without its consentAs a result the sales of Hero-Honda through exports accounts for only 3% of its total sales as compared to 23% for Bajaj in exportHonda is its technology partner till 2014 and hence Hero doesn’t have a well established R&D division as compared to TVS and Bajaj and the R&D division is not close to the manufacturing facilityBrand name of Hero itself has no influence in the industry
THREATSStiff competition from Bajaj DTS-Si engine seriesSports bikes from YamahaMopeds from Bajaj (Wave and Kristal)FDI in automobiles is 100%Entry of global giants like Harley-Davidson in the Indian market
OPPORTUNITIESGrowth in the premium segmentEntry into the Scooterette segmentFamily mopedGlobal expansionLarge market for the high-performance segment which is increasing with the ever-growing spending power of the Indian middle-class
THANK YOU