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A

PROJECT REPORT

ON

(Hero Moto Crop Ltd.)

MASTER OF MANAGEMENT STUDIES (MMS-1)

SEMESTER-1

PILLAIS HOC INSTITUTE OF MAMNAGEMENT

STUDIES & REASEARCH, RASAYANI

SUBMITTED TO

Prof. Sreetama

SUBMITTED BY

GROUP NO -06

NARESH PAWAR

SAGAR SAMBARE

SARVESH ARYA

JIWAN CHASKAR

VAISHALI PAWAR

PALLAVI DEKHANE

ATISH JITEKAR


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Hero Moto Q2 net up 20% at 604 cr

Oct 19, 2011, 02.18AM ISTNEW DELHI: Boosted by record sales, thecountry's largest two-wheeler maker Hero MotoCorp on Tuesday

reported its highest ever quarterly net profit at Rs 603.62 crore, up

20% from the year-ago period. The company had posted a net profit of

Rs 505.60 crore in the corresponding period last. Year.

Hero Motocorps Previous Higest quarterly Net profit Was Rs 597

Crore during July September perod in 2009-2010.

During the second quarter this fiscal the company also reported itshighest ever turnover at Rs 5829 crore, Up 28% from Rs 4563 Crore In

the Year-ago period . The Earlier best figure for a quarter turnover

stood At rs 5683 Crore In Q1, 2011-2012.

The company , Earliaer4 Called Hero Honda, Saw its highest ever

Quarterly Vehicle Sales At 1544315 Units Against 1285944 Units A

Year Ago, Up 20%

Highlights of Q2, FY12

Sales for Q2 FY12 stands at 15,44,315 units, a growth of 20 per

cent

Over 3 million units sales in H1 of FY12, a growth of 22 per cent

Total turnover (Net Sales & Other Operating income) for Q2 at arecord Rs 5829 crores

PAT at Rs 603.62 crores

EBIDTA margin for the quarter at 15.76 per cent
http://wn.com/New_Delhihttp://wn.com/New_Delhihttp://wn.com/New_Delhihttp://wn.com/New_Delhi


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Hero Moto Crop Ltd Profile

1983Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

Shareholders Agreement signed

1984Hero Honda Motors Ltd. Incorporated

1987100,000th motorcycle produced

1991New motorcycle model - "CD 100 SS" introduced,500,000th motorcycle produced

1992Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing

Director, Mr. Raman Kant Munjal

1994New motorcycle model - "Splendor" introduced ,1,000,000th motorcycle produced

1997New motorcycle model - "Street" introduced ,Hero Honda's 2nd manufacturing plant at

Gurgaon inaugural

19982,000,000th motorcycle produced

1999New motorcycle model - "CBZ" introducedEnvironment Management System of Dharuhera Plant certified with ISO-14001 by DNV

Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing

Director, Mr. Raman Kant Munjal



2003Becomes the first Indian Company to cross the cumulative 7 million sales mark

Splendor has emerged as the World's largest selling model for the third calendar year in a row

(2000, 2001, 2002)

2004 Joint Technical Agreement renewed ,Total sales crossed a record of 10 million motorcycles

2007Hero Honda is the World No. 1 for the 6th year in a rowachieved

2008Hero Honda Haridwar Plant inauguration

2011New licensing arrangement signed between Hero and Honda

Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, KarizmaCrosses the landmark figure of 5 million cumulative sales in a single year


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PRODUCT STRATEGY

As everybody knows that Hero Honda is a very trust worthy company,

they produced the bikes which everybody preferred. Now they have changed

their name to Hero moto corp. But still everybody have faith in the company.

The bikes which are most preferred by the common people i.e. Hero

Honda passion. To maintain the trust of the company, they should add up the

new features such as providing dual disc brakes, making the seats of the bike

more spacious and comfortable which may be good for long journeys.

The company should launch the bikes in taking into consideration the

common man. The bikes which are having stylish look, more average and

costing less price. They can provide stylish and sporty look to bikes by using

fibers instead of metal which will cost less. They should modify the tyres using

tubeless tyres, making bit thin tyre, using fuel efficient engines which will

ultimately increase the average of the bike. Then selling these bikes at

affordable price to people.

Some people have the problem of changing the gear while riding;sometimes they get confused in which gear they are riding, so gear indication

facility should be provided in the bikes.

Some companies like TVS, their spare parts are very difficult to get,

then customer becomes dissatisfied. So, the company should also manufacture

the genuine parts of the bikes and should make it easily available to people.

Hero moto corp is also having the expensive stylish look bike market.

They have bike like karizma ZMR. These expensive bikes are for the richpeople who purchase it as luxury for them. But in competition with Karizma,

Honda has launched the bike Honda CBR, so the company should also launch

the new expensive bike in competition with that to regain its market.


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Service Strategies

Customer satisfaction,

a term frequently used in marketing, is a measure of how products and services supplied by acompany meet or surpass customer expectation. Customer satisfaction is defined as "the number

of customers, or percentage of total customers, whose reported experience with a firm, its

products, or its services (ratings) exceeds specified satisfaction goals."In a survey of nearly 200

senior marketing managers, 71 percent responded that they found a customer satisfaction metric

very useful in managing and monitoring their businesses.

In researching satisfaction, firms generally ask customers whether their product or service has

met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When

customers have high expectations and the reality falls short, they will be disappointed and will

likely rate their experience as less than satisfying

Brand loyalty

The situation in which a consumer generally buys the same manufacturer-originated product or

service repeatedly over time rather than buying from multiple suppliers within the category

Brand loyalty is more than simple repurchasing. True brand loyalty exists when customers have

a high relative attitude toward the brand which is then exhibited through repurchase behavior.

Service center

Online help is topic-oriented, procedural or reference information delivered

through computer software

It is a form of user assistance. Most online help is designed to give assistance in the use of a

software application or operating system, but can also be used to present information on a broad

range of subjects. When online help is linked to the state of the application (what the user is

doing), it is called context-sensitive help.

Microsoft products such as Microsoft Visual Studio now refer to locally installed help as Offline

help or Local help.

CSD (Customer Service Desk )

At The every Service Center or Outlet the Must Provide the CSD Desk to Solve the Problems

Easily As well As Faster.
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing


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Marketing Strategies

Promotions

The specification of five elements creates a promotional mix or promotional plan. Theseelements are personal selling, advertising, sales promotion, direct marketing, and publicity. A

promotional mix specifies how much attention to pay to each of the five subcategories, and

how much money to budget for each. A promotional plan can have a wide range of

objectives, including: sales increases, new product acceptance, creation of brand

equity, positioning, competitive retaliations, or creation of a corporate Image.

Fundamentally, however there are three basic objectives of promotion.

Hero Should Do promotions For The Expansion Of the business Like They Can Do

Sponsorship for the IPL, Cricket Matches, There Are Different To Promote through The

Different Media.

Many Times At The time Of Purchase Company Can Give Incentives Like Free Gifts, Or

Contest.

Advertising

Advertising is a form of communication used to persuade an audience (viewers, readers or

listeners) to take some action with respect to products, ideas, or services. Most commonly,

the desired result is to drive consumer behavior with respect to a commercial offering,

although political and ideological advertising is also common. Advertising messages are

usually paid for by sponsors and viewed via various traditional media; including mass media

such as newspaper, magazines, television commercial, radio advertisement, outdoor

advertising or direct mail; or new media such as websites and text messages.

Hero Can Do the Advertisement through This Kind Of Advertisings, With Some New

Innovation As well As Creative Things Also.

Brand Ambassadors

Hero Can DO Contract With Big celebrities Like Now a Days They Have Been Done

Contract With Ranbir Kapoor, for Advertisement.

CSR

CSR is titled to aid an organization's mission as well as a guide to what the company stands

for and will uphold to its consumers. Development business ethics is one of the forms of

applied ethics that examines ethical principles and moral or ethical problems that can arise in

a business environment. ISO 26000 is the recognized international standard for CSR. Public


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sector organizations (the United Nations for example) adhere to the triple bottom line (TBL).

It is widely accepted that CSR adheres to similar principles but with no formal act of

legislation. The UN has developed the Principles for Responsible Investment as guidelines

for investing entities.

Csr Also Helps To Marketing Of The Company Through The Maedia, Word Of Mouth, AndIts Makes Aware People That the Company Having Some Applied Ethics.

Core Products

Core products or flagship products are a company's products which are most directly related

to their core competencies. These products are then integrated into a variety of end products,

either by the company holding the core product or by a second company to which the core

product is sold to, and the end products are sold to users. In other hand core product is a main

product which manufacturing by the company for the customer.

Here Hero Having Core Product IS Bike But Hero Mostly Looking For The Common Mans

Product According To Us Fuel Efficient Bikes Are The A Core Product Of Then Hero Moto

crop.


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Financial strategy

Plant Development

Hero Honda is the name that is synonymous with upgrades and facelifts in the recent

past. After the recent break up with Japanese Auto major Honda, the company has got serious

plans of expanding the production capacity, exploring new markets in Africa and so on.

There was news in the month of March earlier this year that the company is conducting

feasibility study in 10 states to open a new plant. Now, the states of Gujarat and Karnataka have

emerged as the top two in the proposed list. There are more chances of Hero Honda opening its

forth plant in either of these states. Senior vice-president, Marketing & Sales, Mr. Anil Dua said

For 2012-13, we will certainly need a fourth plant. In the next few weeks or months, we will be

talking about the fourth plant.

Hero Honda has the other 3 manufacturing plants at Dharuhera, Gurgaon in Hayana and

Haridwar in Uttarakhand. It is also rumoured that the company has shortlisted location for its

new plant in the 2 proposed states. However, the production capacity and the investment that

would be pumped into this plant is not mentioned by any official and we are waiting for an

official confirmation on the same.

Introduce Dirt Bike

Hero Honda has currently bike ranging from 100 cc to 225 cc and a scooter exclusively for

women riders in its Indian portfolio. As we had mentioned in one of our write ups earlier, thecompany is preparing to introduce at least three new models before the end of the year, with the

first of these being a dirt bike that it will launch under its new name after a split with Japans

Honda Motor Co. Ltd, its partner of 26 years.

Hero Hondas spokesman had commented, Not only will this be the countrys first dirt bike, but

also the first (of Hero Hondas motorcycles) to be launched under the new brand name.

The opening up of the new plant might very well pave the way for introduction of more new

bikes from Hero Honda. Good work and Good going Hero Honda!

Do you think, Hero Hondas new plant would enable the company to scale new heights in the

coming future? Leave your valuable comments right here.


9/10

Invest 4500 crore & enter in international markets :-

London, Aug. 9: Hero MotoCorp (formerly Hero Honda) will invest over Rs 4,500

crore in the next five years to fund its global foray and domestic expansion.

Indias No. 1 two-wheeler company plans to enter over 30 international markets,including Africa, Latin America and South East Asia, over the next two quarters with Hero

branded bikes. It also aims to sell over 10 million units globally (including India) in the next five

years with 10 per cent of the sales coming from international markets.

Reduce material cost:-

Now a days price are gone high for steel copper aluminium and nickel during theyear .Honda plan to reduce slowly their material cost and plan to made bike frommost of the using fibre which is not costly ass compare to all this .

Corporate sales:-

NO MATTER HOW HUGE YOUR ORDER IS,HERO MOTOCORP SHALL

CERTAINLY ENSURE THAT IT IS DELIVERED EFFICIENTLY

Look at the annual growth of the company

0

1000000

2000000

3000000

4000000

5000000

6000000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11


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