Srategic Marketing of Rwo Wheeler Industry

8/7/2019 Srategic Marketing of Rwo Wheeler Industry

1/42


2/42


3/42

CONTENTSCONTENTS

INTRODUCTION OF TWO WHEELER SECTOR IN INDIA

KEY PLAYERS IN TWO WHEELER INDUSTRY

SEGMENTATION OF TWO WHEELER

KEY DRIVERS OF THE INDIAN TWO WHEELER INDUSTRY STRATEGIC MARKETING TOOLS

STRATEGIC MARKETING CONCEPT

INTERACTION BETWEEN MARKETING AND CORPORATESTRATEGY

CORPORATE VS MARKETING STRATEGY

INFLUENCES ON MARKETING STRATEGY


4/42

CASE STUDY:

HERO HONDA PROFILE

MARKET MIX OF HERO HONDA CASE STUDY OF KARIZMA

SWOT ANALYSIS OF KARIZMA

SWOT ANALYSIS OF COMPETITIOR (BAJAJ PULSAR220)

MARKETING MIX OF KARIZMA


5/42

INTRODUCTIONINTRODUCTION


6/42

KEY PLAYERS IN THE TWOKEY PLAYERS IN THE TWO

WHEELER INDUSTRYWHEELER INDUSTRY

HERO HONDA MOTORS LTD.

BAJAJ AUTO LTD. TVS MOTOR COMPANY LTD.


7/42


8/42

SEGMENTATION OF TWO WHEELERSEGMENTATION OF TWO WHEELER

BIKES

SCOOTERS

MOPEDS


9/42


10/42

KEY DRIVERS OF THE INDIAN TWOKEY DRIVERS OF THE INDIAN TWO

WHEELER INDUSTRYWHEELER INDUSTRY

Rise In Indias Young Working Population

Rise of Indias Rural Economy and Growth in

Middle Income Households Greater Affordability of Vehicles

Rapid Product Introduction and Shorter ProductLife Cycle

Inadequate Public Transport Systems in mostUrban Areas


11/42

STRATEGIC MARKETING TOOLSSTRATEGIC MARKETING TOOLS

MARKET ENVIRONMENT

SEGMENTATION

TARGET MARKET

NICHE MARKET MARKET MIX

PRODUCT MIX

PRICE

PROMOTION

PLACE

PEOPLE

PHYSICAL EVIDENCE

PROCESS

DEALING WITH THE COMPETITION

DISTRIBUTION CHANNELS

THE VALUE CHAIN


12/42

STRATEGIC MARKETINGSTRATEGIC MARKETING

CONCEPTCONCEPT

MarketingMarketingStrategy consists of an internallyStrategy consists of an internally

integrated but externally focused set ofintegrated but externally focused set ofchoices about how the organizationchoices about how the organization

addresses its customers in the context ofaddresses its customers in the context of

a competitive environment. A strategya competitive environment. A strategyhas five elements: it deals with where thehas five elements: it deals with where theorganization plans to be active; how itorganization plans to be active; how it

will get there; how it will succeedwill get there; how it will succeedin the marketplace; what the speed andin the marketplace; what the speed andsequence of moves will be; and how thesequence of moves will be; and how the

organization will obtain profitsorganization will obtain profits


13/42

INTERACTION BETWEEN MARKETING

AND CORPORATE STRATEGY

Figure 20.1


14/42

Corporate versus marketing strategy

Corporate strategy:

Allocation of resources within anorganisation to achieve the business

direction and scope specified within

corporate objectives.

Helps to control and co-ordinate thedifferent areas of the organisation.

Marketing strategy:

Defines target markets, direction

and requirements in order tocreate a defensible position

compatible with the overall

corporate strategy.


15/42

INFLUENCES ON MARKETING STRATEGY

Figure 20.2


16/42

Marketing plans and programmes

Marketing plan:

Turning strategies into implementable actions.

A detailed written statement specifying targetmarkets, marketing programmes, responsibilities,time scales and resources to be used within thedefined budgets.

Marketing programmes: Actions, often tactical, using marketing mix variables

to gain advantage within target market.

Means of implementing the marketing strategy.


17/42

Types of growth

Intensive growth:

Market penetration.

Market development.

Product development.

Diversified growth

Integrative growth - backward, forward, horizontal.

No growth - harvesting, entrenchment, withdrawal.


18/42


19/42

Competitor analysis

A systematic attempt to identify and understand key elements of a competitors

strategy in terms of objectives, strategies, resource allocation and implementation

through the marketing mix.


20/42

Porters Five Forces Model

1. Bargaining power of suppliers.

2. Bargaining power of customers.

3. Threat of new entrants.

4. Threat of substitute products or services.

5. Rivalry among current competitors.


21/42

Concerns of an Org.s competitive analysis

1. Who are our competitors?

2. How can our competitors be grouped meaningfully?

3. What are our competitors strengths and weaknesses?

4. What are our competitors objectives and strategies?

5. How are our competitors likely to react to changes in the marketing environment?


22/42

Concerns of an Org.s competitive analysis (1)

Competitor identification

1. Who are our competitors?

Similar specific-same product, technology and target market

Similar general-same product area, but different segments

Different specific-same need satisfied by different means

Different general-competing for discretionary spend


23/42


2. How can our competitors be grouped meaningfully?

Different characteristics for identifying Strategic groupings

Figure 20.8Source: Adapted from Wilson et al. (1992).


24/42


3. What are competitive strengths and weaknesses

Requires use of various information sources.

Consider in terms of critical success factors:

e.g. manufacturing, technical and financial strength, relationships with supplier andcustomer, its market and segment, product range, its volume, cash and profits etc.

Information can be used to plan and launch attack.


25/42


4. What are our competitors objectives and strategies?

Objectives related to cash generation, market share, technological

leadership, quality recognition etc.

Find clues in product portfolio.

Strategy - related to its positioning, marketing mix etc.


26/42

CCase study in relation to twoase study in relation to two

wheeler industrywheeler industry

Players in two wheeler segment

Major development in this sector

Problems faced by two wheeler segment

Growth strategy of hero Honda


27/42


28/42

SStory of making a real herotory of making a real hero

The Joint venture between Honda MotorsThe Joint venture between Honda Motors --Japan and Hero group made it a real Hero ofJapan and Hero group made it a real Hero of

twotwo--wheeler industry and made Herowheeler industry and made Hero--HondaHondaMotors the worlds largest twoMotors the worlds largest two--wheelerwheeler

company.company.


29/42

IntroductionIntroduction

1.1 - Hero Honda Group

1.2 - Company Profile

1.3 - Strategic Intent of HHML

1.4 -Two - Wheeler Industry in India

1.5 - Key Milestones


30/42

AAlliances entered by hero hondalliances entered by hero honda

groupgroup

Technology Related

Partnerships/

Product Engineering

Related Alliances

1. Honda Motor Companyof Japan

2. Showa Corporarion,

Japan

3. Honda Foundry

Company Limited, Japan

4. Fein Tools, Switzerland5. Gujarat Industrial

Investment Corporation

6. Wean United, USA

7. Kawasaki Steel

Corporation, Japan

8. National Bicycle, Japan9. Aprilia, Italy

Alliances & Joint Ventures

1. Microsoft, Singapore

2. DynEd International

3. ACS. USA

IT Related

1. PTC

2. Porsche Design

3. Target Design

4. Universal CyclesPlc, UK

5. EralMetall, Germany

ted Alliances


31/42

Resource analysis of hero hondaResource analysis of hero honda

Financial resourcesFinancial resources

Physical resourcesPhysical resources

Technological resourcesTechnological resources


32/42

FFinancial resourcsinancial resourcs

48%

26%

26%

EQUITY SHAREHOLDERS

HERO GROUP

HONDA GROUP


33/42


34/42

strategiesstrategies

Leadership

Promotional strategy

marketing mix

Target market


35/42


36/42


37/42

Group AnalysisGroup Analysis

- Value Chain Analysis

- SWOT Analysis

Competitor Analysis

- BCG Matrix

- Porters Five Forces Model


38/42

VValue chain analysisalue chain analysis

Inbounds logistics

Operations

Marketing and sales

Services


39/42


40/42

. SWOT Analysis. SWOT Analysis

STRENGTHS

Huge brand equity among customers

R & D due to JV with Japanese giant Honda

Models in almost every bike segment

Healthy growth in profits

Brilliant relations with customers and dealers

WEAKNESSES

Relatively low cash reserves due to massive dividend payouts

Virtual absence in the highly lucrative bike segments

Imports approximately more than 30 percent of its spare parts requirements

Slow to react to market changes late entrants into the 125 cc segment

Too much dependence on few models


41/42

OPPORTUNITIES

HHML can still make it up by launching a strong model in the 150 cc segment

It has opportunity to pick pace in the 125 cc segment which is relatively unexploited

Exports market can form a larger part of its revenues

Advertisements appealing to youth can do wonders for the company

Cruiser bike segment is unexplored by HHML

THREATS

All major bike makers in the world are lining up for India

The growth in 2 wheeler market is slowing down

Absence in the 150 cc could harm the companys growth plans

Low cash reserves

HHML is losing foothold in exports market which is now dominated by Bajaj


42/42

VisionaryLeadership

TechnicalSuperiorit

y

BrandImage

Documents

Srategic Marketing of Rwo Wheeler Industry