Reliance Retail Plans e

8/3/2019 Reliance Retail Plans e

1/45

Reliance Retail plans e-commerce push

Reliance Retail plans to get into e-commerce in a big way. The online medium will serve as anextension to their brick & mortar stores.Depots will be setup at various points which will serve

as delivery points for online orders.They project that e-commerce will contribute 5-6% of their

overall revenues

Definition:

What is CRM or Customer Relationship Management? CRM is the acronym for the term"customer relationship management". CRM is the common terminology used to describethe managing of prospects all the way through the entire sales process. CRM is often an

entire data system that can either be manipulated manually, such as an index card

system or a computer automated system. There is specially designed software forcustomer relationship management (CRM) that can be either installed directly into acomputer or through a web based system that is accessible only online. CRM systemsare useful in that they enable the management of the entire prospect/customer detailssuch as the names, addresses, phone numbers, call records and purchase history andmore. Other uses include planning of appointments, schedule of call back times andother sales related activities. Automated CRM, depending on the system, can be foronly one user, or for several users to have access to customer accounts.

Company Name

Honda Motor Co., Ltd.

Head Office1-1, 2-chome, Minami-Aoyama, Minato-ku, Tokyo 107-8556, JapanTel: +81-(0)3-3423-1111

Established

September 24, 1948

President & CEOTakanobu Ito

Capital

86 billion (as of March 31, 2011)

Sales (Results of fiscal 2011)Consolidated: 8,936,867 millionUnconsolidated: 2,915,416 million


2/45

Total number of employeesConsolidated: 179,060 (as of March 31, 2011)Unconsolidated: 25,673 (as of March 31, 2011)

Consolidated subsidiaries

382 subsidiaries (as of March 31, 2011)

Chief ProductsMotorcycles, automobiles, power products

Aoyama Building

Wako Building

CORPORATE PROFILE

Honda Motor Co., Ltd. operates under the basic principles of "Respect for the

Individual" and "The Three Joys" commonly expressed as The Joy of Buying,The Joy of Selling and The Joy of Creating. "Respect for the Individual" reflects

our desire to respect the unique character and ability of each individual person,trusting each other as equal partners in order to do our best in every situation.Based on this, "The Three Joys" expresses our belief and desire that eachperson working in, or coming into contact with our company, directly or through


3/45

or products, should share a sense of joy through that experience. In line withthese basic principles, since its establishment in 1948, Honda has remained onthe leading edge by creating new value and providing products of the highestquality at a reasonable price, for worldwide customer satisfaction. In addition,the Company has conducted its activities with a commitment to protecting the

environment and enhancing safety in a mobile society.

The Company has grown to become the world's largest motorcyclemanufacturer and one of the leading automakers. With a global network of 474*subsidiaries and affiliates accounted for under the equity method, Hondadevelops, manufactures and markets a wide variety of products, ranging fromsmall general-purpose engines and scooters to specialty sports cars, to earn theCompany an outstanding reputation from customers worldwide.

had mentioned in my earlier post about clutch and flywheel of my Honda City getting burnt and

Honda dealer blaming me for the same. Well, after receiving the response from the Honda

dealer, I decided to pursue the matter with Honda Car company itself. So far my effort to getthem to even say even a word has been unsuccessful. It seems that Honda Siel Car India believesthat keeping quiet is the best way of building relations with the customer.

Issue

July 20, 2009I wrote to Customer Relations of Honda Siel Car India

Mr. Jaspreet Singh:

I have received a reply from Prime Honda regarding my clutch problem which is of no surprise

to me. The first reaction of all manufacturers is to blame the customers and it seems Honda is no

different. I have taised a number of issues which nobody has bothered to address. I am verydissatisfied with the reply from Prime Honda. I dont think the fault lies at Prime Honda as theyare directed by you on this issue.

I have asked Prime Honda to return the damaged clutch and flywheel to me. I may need the sameas evidence. As such, I would appreciate that the parts are returned to me within the next 2/3

days. I have also spoken to Avinash Ladd at Prime Honda about this.


4/45

In the meantime, I would appreciate if you could:

(a) Let me know more about the functioning of your clutch systems, that is, how sensitive it is as

well as the dos and donts.

(b) Give us a demo as to how one should use the clutch while driving the car and also suggest to

us as to what we are doing wrong while driving. It seems that driving Honda City requiresspecial skills or special kind of driving which we are not aware of.

Hoping to hear from you soon.

thanks

Avinash Narula

July 23, 2009Sent a reminder

Mr. Jaspreet Singh:

I regret to inform you that I have not received any response from your end to my mail given

below. I have also not received a reply from Prime Honda as to when I can collect the parts. I am

a little surprised at the response I am getting from Honda. I would appreciate if you couldconfirm the following:

(a) When can I have the Clutch and flywheel collected?

(b) When will I receive more information about the clutch system?

(c) When will I get a demo as to how to use the clutch? I think it is the responsibility of themanufacturer to educate the customer as to how to use the product.

I would appreciate if you can send a response, negative or positive. I think I deserve this courtesy

as a customer of yours.

thanks

Avinash narula

July 27, 2009Still no response. Sent another reminder

Mr P Chakravarty GM, Service

Hi!

Since your so called Customer Relations dont want to respond to my emails and maintain

relations with us, I am writing to you. I do hope that the service department would want to

provide proper service to Honda City car customers.


5/45

I have been told by you through your dealer indirectly that I dont know how to drive Honda City

and that is why the flywheel and clutch got burnt within 30,000 km of running. As such, I had

requested your Customer relations who dont want to maintain relations to show us how to usethe clutch while driving Honda City but I have not received any reply from their end. I have also

asked for some instructions as to how to use the clurch while driving the car because I have been

told now that the clutch system is very sensitive. I do not want to incur an expenditure of Rs.20,000 again. I am also sure that you would want us to have a good driving experience and

would give us all the necessary information so that we can drive the Honda City without getting

the clutch and the flywheel burnt.

We would like to know what we are doing wrong while driving Honda City. So let us see if youwould like your customers to have an enjoyable driving experience that your company literature

and avertisements keep talking about.

thanks

Avinash NarulaYour dissatisfied customer

Your customer who doesnt get response

Your customer you dont want to maintain relations with

I have not received any reply till date.

Now let me mention here that Honda probably has a team of people who continuously work to

ensure that their ratings in JD Power customer service survey are high. I am sure that like other

car manufacturers, Honda tracks every criteria on which the JD Poer bases it ratings. But there isno one to give even an automated reply to a dissatisfied customer who had to spend Rs. 20000 to

change a clutch and flywheel after just 30000 kms of running.

The conclusion I am arriving at is that before you buy Honda City car, you should learn how to

drive properly so that you dont burn your clutch and flywheel and risk your life if the car

catches fire. I think it may be a good idea for Honda Siel Car India to open up a driving school asa profit centre for the primary purpose of ensuring that Honda City car buyers learn how to drive

their car. Or maybe they find that they will make more money selling clutch and flywheels as

spareparts when they get burnt.

So if you are thinking of buying a Honda City car, my suggestion is that you take some

precautions mentioned below:

(a) Go to driving school again.

(b) Ask the Honda car dealer or the company to teach you how to drive.

(c) Make a fixed deposit of Rs. 15,000 for three years so that by the time you have driven 30,000km, your fixed deposit will give you the money to replace the clutch and flywheel.

(d) Ensure you have medical and life insurance

Avinash Narula


6/45

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National Institute Of Fashion

Technolog PatnaA Report on

Customer Relationship Management (CRM)


11/45

Initiatives of Hero Honda Limited

Subject: Customer Relationship Management

Submitted to:

Ms. Jaya Matthews

Submitted By:

Naveen Jaiswal

Master of Fashion Managment

Sem III, NIFT- Patna

Page

1


12/45


13/45


14/45


15/45


16/45

Hero Honda -CRM Initiatives:

Introduction:

Customer relationship management (CRM) is a term applied to

processes

implemented by a company to handle its contact with its

customers. CRM


17/45

software is used to support these processes, storing information on

current and prospective customers. Information in the system can

be

accessed and entered by employees in different departments, such

as

sales, marketing, customer service, training, professional

development,

performance management, human resource development, and

compensation. Details on any customer contacts can also be stored

in the

system. The rationale behind this approach is to improve services

provided directly to customers and to use the information in the

system

for targeted marketing and sales purposes.

From the outside, customers interacting with a company perceive

the

business as a single entity, despite often interacting with a variety

of

employees in different roles and departments. CRM is acombination of

policies, processes, and strategies implemented by a company that

unify


18/45

its customer interaction and provides a mechanism for tracking

customer

information.

But CRM is not limited only to software and its applications, the

scope is

vast and so is the application of CRM.Different companies use

different

strategies to maintain relationships with customers.

Here we are taking up the case of Hero Honda Motors Ltd. , as to

how they

implemented their CRM programmes and what success they got

from

them.

Company profile:

Hero is the brand name used by the

Munjal brothers in the year 1956 with the

flagship company Hero Cycles. The joint

venture between India's Hero Group and

Honda Motor Company, Japan.

During the 80s, Hero Honda became the first company in India to

prove


19/45

that it was possible to drive a vehicle without polluting the roads.

The

company introduced new generation motorcycles that set industry

benchmarks for fuel thrift and low emission. A legendary 'Fill it -

Shut it -

Forget it' campaign captured the imagination of commuters across

India,

Page

2

and Hero Honda sold millions of bikes purely on the commitment

of

increased mileage.

Hero Honda has consistently grown at double digits since

inception; and

today, every second motorcycle sold in the country is a Hero

Honda. Every

30 seconds, someone in India buys Hero Honda's top -selling

motorcycle -

Splendor.


20/45

Hero Honda bikes currently roll out from two globally

benchmarked

manufacturing facilities based at Dharuhera and Gurgaon in

Haryana.

These plants together are capable of churning out 3.9 million bikes

per

year. A third state of the art manufacturing facility at Hardwar in

Uttranchal will soon be commissioned to cope with sustained

customer

demand.

Hero Honda's extensive sales and service network now spans over

3000

customer touch points. These comprise a mix of dealerships,

service and

spare points, spare parts stockists and authorized representatives

of

dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique

CRM

initiative - Hero Honda Passport Program, one of the largest

programs of


21/45

this kind in the world, has over 3 million members on its roster.

The

program has not only helped Hero Honda understand its

customers and

deliver value at different price points, but has also created a loyal

community of brand ambassadors.

The success of Hero Honda has not been smooth sailing through

calm

waters. The company has been through a lot storms and rough

weather.

Over dependence on the Japanese partner Honda for R&D

paralyzed the

company more than once. Many a times HHML had to sit on the

sidelines

while its competitors roared past. Thus, the lack of R&D make the

company a cripple, especially when the competition began to

intensify in

the late 90s and other foreign joint ventures (like Kawasaki and

Yamaha)

helped their local companies mount a credible assault on Hero

Honda.

Growth


22/45

Hero Honda experienced great growth throughout its early days.

The

Munjal family started a modest business of bicycle components.

By 2002

Hero Group had sold 86 million bicycles producing 16000

bicycles a day.

Today Hero Honda has an assembly line of nine different models

of

motorcycles available. It holds the record for most popular bike inthe

world by sales for Its Splendor model. Hero Honda Motors

Limited was

established in joint venture with Honda Motors of Japan in 1984,

to

Page

3

manufacture motorcycles. It is currently the largest producer of

Two

Wheelers in the world. It sold 3 million bikes in the year 2005-

2006.

Recently it has also entered in scooter manufacturing, with its

model


23/45

PLEASURE mainly aimed at girls. HUNK is the latest offering

from the

HHML stable.

Just-in-Time Manufacturing

The Hero Group through the Hero Cycles Division was the first to

introduce the concept of just-in-time manufacturing. The Group

boasts of

superb operational efficiencies. Every assembly line worker

operates two

machines simultaneously to save time and improve productivity.

The fact

that most of the machines are either developed or fabricated in-

house,

has resulted in low inventory levels.

In Hero Cycles Limited, the just-in-time inventory principle has

been

working since the beginning of production in the unit. This is the

Japanese

style of production. In India, Hero is probably the only companyto have

mastered the art of the just-in-time inventory principle.

Supplier Relationship Management


24/45

With the Indian motorcycle market opening up to overseas

competitors

and more fierce domestic competition, HHML decided to create a

single

integrated IT system to integrate business operations such as

product

planning, materials resource planning, financials and sales and

distribution. It was also looking to automate its internal supply

chain,

reduce overall costs, and create a transparent information system

that

would help managers make decisions more quickly. To do all this

it

teamed up with SAP in 2000 to implement the system, and wentlive in

February 2001. HHMLs IT team along with SAP technicians

implemented

an entire Supplier Relationship Management (SRM) system for a

better

connected and transparent business process. HHML was among

the first in

India to setup the MySAP SRM version 3.0 and ended up with a

Computer


25/45

Associates Intelligent Enterprise Award in the manufacturing

vertical

category.

Dealer Relationship Management

At the same time, for effective dealer relationship management,

HHML

has brought innovation through application of progressive

technology into

its authorized dealerships. To reduce the amount of manual labour

Introduction:

Customer relationship management (CRM) is a term applied toprocesses

implemented by a company to handle its contact with its

customers. CRM

software is used to support these processes, storing information on

current and prospective customers. Information in the system can

be

accessed and entered by employees in different departments, such

as

sales, marketing, customer service, training, professional

development,

performance management, human resource development, and

compensation. Details on any customer contacts can also be storedin thesystem. The rationale behind this approach is to improve services

provided directly to customers and to use the information in the

system


26/45

for targeted marketing and sales purposes.

From the outside, customers interacting with a company perceivethe

business as a single entity, despite often interacting with a variety

of

employees in different roles and departments. CRM is a

combination of

policies, processes, and strategies implemented by a company that

unify

its customer interaction and provides a mechanism for tracking

customer

information.But CRM is not limited only to software and its applications, the

scope is

vast and so is the application of CRM.Different companies usedifferent

strategies to maintain relationships with customers.

Here we are taking up the case of Hero Honda Motors Ltd. , as tohow they

implemented their CRM programmes and what success they gotfrom

them.

Company profile:

Hero is the brand name used by the

Munjal brothers in the year 1956 with the

flagship company Hero Cycles. The jointventure between India's Hero Group and

Honda Motor Company, Japan.

During the 80s, Hero Honda became the first company in India to

prove


27/45

that it was possible to drive a vehicle without polluting the roads.

Thecompany introduced new generation motorcycles that set industry

benchmarks for fuel thrift and low emission. A legendary 'Fill it -

Shut it -

Forget it' campaign captured the imagination of commuters across

India,Page

2

and Hero Honda sold millions of bikes purely on the commitmentof

increased mileage.

Hero Honda has consistently grown at double digits since

inception; and

today, every second motorcycle sold in the country is a Hero

Honda. Every

30 seconds, someone in India buys Hero Honda's top -sellingmotorcycle -

Splendor.

Hero Honda bikes currently roll out from two globally

benchmarked

manufacturing facilities based at Dharuhera and Gurgaon inHaryana.

These plants together are capable of churning out 3.9 million bikes

peryear. A third state of the art manufacturing facility at Hardwar in

Uttranchal will soon be commissioned to cope with sustained

customer

demand.


28/45

Hero Honda's extensive sales and service network now spans over

3000customer touch points. These comprise a mix of dealerships,

service and

spare points, spare parts stockists and authorized representatives

of

dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique

CRM

initiative - Hero Honda Passport Program, one of the largest

programs of

this kind in the world, has over 3 million members on its roster.The

program has not only helped Hero Honda understand its

customers anddeliver value at different price points, but has also created a loyal

community of brand ambassadors.

The success of Hero Honda has not been smooth sailing throughcalm

waters. The company has been through a lot storms and roughweather.

Over dependence on the Japanese partner Honda for R&D

paralyzed the

company more than once. Many a times HHML had to sit on the

sidelines

while its competitors roared past. Thus, the lack of R&D make the

company a cripple, especially when the competition began tointensify in

the late 90s and other foreign joint ventures (like Kawasaki and

Yamaha)

helped their local companies mount a credible assault on Hero

Honda.


29/45

Growth

Hero Honda experienced great growth throughout its early days.

The

Munjal family started a modest business of bicycle components.

By 2002

Hero Group had sold 86 million bicycles producing 16000

bicycles a day.Today Hero Honda has an assembly line of nine different models

of

motorcycles available. It holds the record for most popular bike inthe

world by sales for Its Splendor model. Hero Honda MotorsLimited wasestablished in joint venture with Honda Motors of Japan in 1984,

to

manufacture motorcycles. It is currently the largest producer of

Two

Wheelers in the world. It sold 3 million bikes in the year 2005-

2006.Recently it has also entered in scooter manufacturing, with its

model

PLEASURE mainly aimed at girls. HUNK is the latest offering

from the

HHML stable.

-in-Time Manufacturing

The Hero Group through the Hero Cycles Division was the first tointroduce the concept of just-in-time manufacturing. The Groupboasts of

superb operational efficiencies. Every assembly line worker

operates two


30/45

machines simultaneously to save time and improve productivity.

The factthat most of the machines are either developed or fabricated in-

house,

has resulted in low inventory levels.

In Hero Cycles Limited, the just-in-time inventory principle has

been

working since the beginning of production in the unit. This is the

Japanese

style of production. In India, Hero is probably the only company

to have

mastered the art of the just-in-time inventory principle.Supplier Relationship Management

With the Indian motorcycle market opening up to overseas

competitors

and more fierce domestic competition, HHML decided to create a

single

integrated IT system to integrate business operations such as

product

planning, materials resource planning, financials and sales anddistribution. It was also looking to automate its internal supply

chain,

reduce overall costs, and create a transparent information systemthat

would help managers make decisions more quickly. To do all this

it

teamed up with SAP in 2000 to implement the system, and wentlive in

February 2001. HHMLs IT team along with SAP technicians

implemented

an entire Supplier Relationship Management (SRM) system for a

better


31/45

connected and transparent business process. HHML was among

the first inIndia to setup the MySAP SRM version 3.0 and ended up with a

Computer

Associates Intelligent Enterprise Award in the manufacturing

vertical

category.Dealer Relationship Management

At the same time, for effective dealer relationship management,

HHMLhas brought innovation through application of progressive

technology intoits authorized dealerships. To reduce the amount of manual labour

in repairs and maintenance, it has introduced pneumatic tools toreplace hand tools, while hydraulic ramps now position bikes for

easy

inspection. It has also installed automatic ventilation systems in

repair

shops to remove engine exhaust fumes.Labour Relationship Management

A striking feature within HHML in particular and the Hero Group

in generalis the commitment and dedication of the workers. Efficient labour

relationship management is evident since there is no organized

labour

union and family members of employees find ready employment

withinHero. The philosophy with regard to labour management is Hero

is

growing, grow with Hero. When it comes to workers benefits,

the Hero


32/45

Group is known for providing facilities, further ahead of the

industrynorms. Long before other companies did so, Hero was giving its

employees a uniform allowance, as well as House Rent Allowance

(HRA)

and Leave Travel Allowance (LTA). Extra benefits took the form

of medical

check-ups, not just for workers, but also for the immediate family

members. An enlightened labour policy and a keen sense of fair

play have

contributed to the tremendous sense of dedication and

commitment onthe part of everyone associated with Hero.Employee Relationship Management

Effective employee relationship management is also evident. The

vice

president of Information Systems at HHML believes in exposing

people to

IT for personal benefit to heighten its acceptance. To this end, he

has setup a touch-screen kiosk at HHML that addresses HR queries for

employees

on matters such as salary and leaves. Clearly, the importancebehind

understanding employee needs and creating a user-friendly

environment

is taken into account. Such strategic decisions are crucial inretaining and

attracting talent at HHML.

Relationship Management:


33/45

Some of the CRM initiatives of the Hero Honda Motorcycles Ltd.

are:

The Hero Honda passport programme.

SBI-Hero Honda Credit Card.

Implementation ofmySAP CRM.

The Hero Honda passport programme:The Hero Honda passport programme is one of the first of its kind

in India.

The company has secured over 1 million members in the last three

years

with the Passport Programme, which involves offering members asmall

card/booklet that looks like the Indian passport, complete with

''visa''

stamps for points, similar to those offered by credit cardcompanies and

airlines. The only difference in this programme is that the member

need

not always spend money to obtain points.

With the passport programme, each time a Hero Honda customer

visits a

service centre, he gets points and depending on the profile

submitted by

the customer, he gets benefits like free passes to a cricket match

sponsored by the company

2001, HHML was the first two-wheeler company to initiate acustomer

relationship programme, christened the Hero Honda Passport

Programme.


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It was a massive success, signing up over half a million customers

withineight months. Under the programme, a customer gets a passport

booklet

at a nominal fee. This entitles owners to all the benefits, such as

free

insurance cover, prizes, and tickets for events sponsored by the

company

and other discounts for three years. More than that, a Passport

membercan accumulate points for each transaction at the companys retail

outlets. Every referral that they generate earns bonus points whichcan be

redeemed at regular intervals for gifts or discounts. Today,

Passport is thelargest CRM initiative in India with close to 3 million members.

In tune

with effective management of relationships, it has given HHML ahuge

connects with consumers and a opportunity to peep into theirminds.

HHML has fine-tuned its process for finding out just what a

diversified

customer base across the length and breadth of India wants. It

does this

by regularly conducting vast market surveys that question up to

70,000people at a time. Then the specific customer requirements and

preferences are translated by the marketing and R&D teams into

basic

specifications, which are sent on to Honda`s R&D group in Japan.

Honda


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comes up with a prototype design and HHML takes this back into

themarket to sound out customers for possible further refinement,

until a

winning design is eventually arrived at for HHML to build.

Through such

effective management of customer relationships, confidence and

trust are

the two enduring values associated with the brand of Hero Honda.

These

values define the bond that Hero Honda establishes with

customerscutting across geographic locations, income levels and market

segments.

The reliability and durability of this relationship has resulted inpositive

word-of-mouth from satisfied customers, working to the brands

advantage

More Value added services:In tune with effective customer relationship management,

HHML has come up with the fresh idea of mobile service

workshops: a complete workshop incorporated into trucks that

travel

predetermined routes, visiting small towns and villages whereexisting

customers reside. Customers are informed that a workshop will be

coming, so that they dont have to travel hundreds of kilometres toan

authorized workshop for servicing or repairs. These mobile

workshops also

double as sales outlets and spare-part distributors.


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The concept has been so successful that some of HHMLs largest

distributors have adopted the idea and send out their ownworkshops to

supplement

HHMLs

efforts.Page

7

Another notable improvement on the customer front is that

customers can

wait in air-conditioned waiting rooms where TVs and water

coolers havebeen installed, while in a few key dealerships, they can enjoy a

cup of tea

and surf the Internet in Hero cyber cafes. In certain larger

dealerships,

customers can actually watch ongoing repairs through glass-

fronted

workshops. This gives customers more confidence in HHMLsservice and

support.After the emphasis paid by Hero Honda on the factors called 3S

(Sales,

Service and Spares), the company has now a fourth added to the

list:

Safety. At select dealerships, a safety corner has been created,

where thecustomer, who has come to take delivery of his bike, is explained

the

nuances of safe riding. The company plans to extend this concept toitsentire dealer network


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Benefits of Passport Program to customers:

4 Winners of the Month

Each Month, 4 Hero Honda Passport Programme Members

get a chance to win 1 Hero Honda Splendor+ or Rs 40,000each.

SPECIAL PRIVILEGES ALL THE WAY

Special discounts on spares and free services for Hero Honda

motorcycle

along with attractive gifts at various milestones. This is companiesway of

making sure that every time customer come to showroom forservicing

motorcycle, they take away more than just the benefit ofworld class servicing in their automated workshops.

KEEPING IN TOUCHALL YEAR THROUGH

An effort to be in constant touch with the customers through

quarterly newsletter, "Suhana Safar" .The newsletter gives an

insider's view to the company, Hero Honda Motors Ltd. alongwith the latest happenings in the HHPP family.

SPECIAL OFFERS:

From time to time exclusive offers for customers

with the best brands in the country.

SPECIAL INVITATIONS:

For active members of the Hero Honda Passport Program the

chance ofbeing invited to special events like Musical nights, Movie

screenings,

Award shows, etc.

SECURITY FOR CUSTOMERS AND FAMILY:


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The moment customers apply for Hero Honda Passport they are

automatically covered for a free Rs.100, 000 Personal AccidentInsurance

policies for one year or for three years, as applicable.

Rewards and points:All these amazing rewards and benefits come to the customer as

they

earn points in the Hero Honda Passport Programme. Once become

a

member, they earn points for a host of regular transactions that

they

conduct at their local Hero Honda authorized Dealership orService

Center. These include:

Purchase of Hero Honda genuine sparesPage

9

vPurchase of accessories

Servicing of motorcycle

Bonus points on :

Free Service

Paid Service

Referrals i.e. recommending a friend to purchase a Hero Honda

motorcycleMore Attractions:

Star Club and Treasured Rewards

This unique club has been introduced for those members who get

their bikes serviced regularly from authorized Hero Honda Service

Centres.


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The Star Club membership not only identifies the member as

special forthe HHPP family, but also brings in some added benefits like:

30% discount on labour7.5% discount on spares, till the validity of the Passport

Treasured Reward:

For Passport Programme members who have crossed the 1 lakh

point

mark in the Hero Honda Passport Programme. The HHPP

Treasured

Rewards available at 8 prescribed milestones beginning from 1.25lakh

points and ending at 3 lakh points, with each milestone at a gap of

25,000

points. In other words, the milestones are placed at 1.25 lakhs, 1.5

lakhs

and so on till 3 lakhs.

Each time a member reaches a milestone a Motorcycle Privilege

Voucherof Rs. 1250/- will be given to him. This voucher may be used to

avail adiscount on the purchase of a new Hero Honda motorcycle. This

voucher

is transferable and can be given to friends or relatives who may be

planning to buy a new Hero Honda motorcycle.

Post CRM benefits:After implementing the Passport Program across India the Hero

Honda

Motorcycles Ltd achieved instantaneous success .Over half amillion


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customers signed up within eight months .

Some of benefits are summarized below:

The company secured over 1 million members in the last three

years.Recorded a 25-per cent increase in its net profits to Rs 581 crore

and a 14-per cent higher turnover at Rs 5,195 crore within a year

of

launch of the passport programme.

More satisfied customers (58%) than any other motorcycle brand

in

a survey conducted by Mckinsey in 2004.A clear and personalized record of customers which helped in

planning more CRM activities in future for the customers.

30 % Reduction in overall advertising and promotion budget as a

company target which was successfully achieved in 2005

of mySAP CRM:

In Indias highly competitive motorcycle manufacturing sector,streamlined operations and effective business relations are

essential. To

improve information exchange with its many partners, Hero

Honda

decided to introduce leading-edge supplier and customer

relationship

management capabilities. We wanted to enable our dealers and

suppliersto perform online transactions, explains S.R. Balasubramanian

(Bala),vice president of information systems at Hero Honda, and this

was


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something that our legacy solution could not support.

Hero Honda opted for the powerful self-service features ofmySAP

Supplier Relationship Management (mySAP SRM), plus the e-

commerce

capabilities of mySAP Customer Relationship Management

(mySAP CRM).

The project was completed in a record three months time in 2004.End-to-End Process Integration

Hero Honda also implemented a customer portal, as a feature ofmySAP

CRM. With the two portals now in place the company benefitsfrom end-to-end process integration. Dealers place their orders once a month;

typically

a dealer might order several hundred motorcycles, as well as spare

parts.Page

12

every Friday the company get orders in, consolidates them on

Saturday, and on Monday morning suppliers are all receiving

deliveryschedules, directly from production planning system.

Because the ordering process is now fully automated, Hero Honda

saves

approximately three days over the time it used to take to complete

thisprocess. That translates into an inventory savings of about 10%,

which inturn translates into a substantial cost savings.


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And they know that the portals information is both accurate and

up to theminute. Since the advance shipping notification created by the

supplier is

derived from the purchase order, the chance of a delivery

mismatch with

the order is almost zero.

The Company is more responsive than ever before to the dealers

and

other customers, thanks to mySAP SRM and mySAP CRM.SAP implementation at a glance:

SummaryFaced with growing market demand and inefficiencies in its

supplier and

dealer order processes, HeroHondathe worlds largest two-

wheeler

manufacturerchose the mySAP Supplier Relationship

Management

(mySAP SRM) solution to integrate and automate its large and

complexsupply chain.Key Challenges

Supplier order processing not well synchronized with production

planning Proprietary supplier portal provided no transactions, only

information.Project Objectives

Speed up and automate supplier order processing

Synchronize customer orders with supplier schedulesSolutions and Services

mySAP SRM


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mySAP Customer Relationship Management (mySAP CRM)

solutionImplementation Highlights

-month initial rollout covered 15 of the top 125 strategic suppliers;

over 50 suppliers have since been covered Implementation included training Hero Honda suppliers as well

as

buyersImplementation Partner

SAP Consulting

Existing EnvironmentmySAP ERPDatabase

OracleHardware

IBMOperating System

AIX.

Key Benefits achieved after my SAP CRM implementation: Faster supply chain order processingcut three days from old

schedule

Improved accuracy of deliveries from 98% to 100%

Better responsiveness to customer changes

Online communication with suppliers integrated and traceable

Inventory planning improved10% reductions in inventory

carrying cost

Transaction costs reduced because of fewer discrepancies tohandle

Overall lower process and transaction costsAMBITIOUS PLANS FOR THE FUTURE:


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Building on the success of the project, Hero Honda is now

planning arange of new SAP initiatives. These include adding additional

mySAP SRM

and mySAP CRM functionality, implementing the SAP Strategic

EnterprisePage

14

Management application of mySAP ERP Financials and

integrating it with

SAP Business Information Warehouse (SAP BW), and rolling out

SAPEnterprise Portal (SAP EP) to all users. The SAP BW component

is provided

in SAP Business Intelligence (SAP BI). SAP BI and SAP EP are

components

of the SAP NetWeaver platform.

Awards and Recognition for CRM:

IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture

) Loyalty Awards -Customer and Brand Loyalty Award in

Automobile (two-wheeler) sector,2008.

Asian Retail Congress Award for Retail Excellence(Stra tegies

and Solutions of business innovation and transformation) -BestCustomer Loyalty Program in Automobile category,2008.

Most Trusted Company , by TNS Voice of the Customer

Awards

2006.

Best in its class awards for each category by TNS Total CustomerSatisfaction Awards 2006:


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