Analysis
INTRODUCTION
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. It was started in 1984 by Brijmohan
Lall Munjal in Dharuhera. It has its presence in thirty nations across the globe.
The current Chairman, MD and CEO of the company is Pawan Munjal while Sunil
Munjal stepped down as the promoter of the company.
Hero MotoCorp Ltd announced its June quarter results which showed that net profit
rose to a record high of Rs883.10 crore, up 18.3% from the year-ago period. Twowheeler sales increased 6.7% year-on-year to 1.75 million units in the latest quarter
and net revenue rose by 7.7% to Rs8,010.66 crore from Rs7,435.47 crore.
Reportedly, an uptick in rural demand for two-wheelers helped the companys robust
growth.
Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new
identity, reflects its commitment towards providing world class mobility solutions with
renewed focus on expanding company's footprint in the global arena.
Mission
Hero MotoCorp's mission is to become a global enterprise fulfilling its customers'
needs and aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates. The company will
provide an engaging environment for its people to perform to their true potential. It
will continue its focus on value creation and enduring relationships with its partners.
Strategy
Hero MotoCorp's key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
operational efficiency, aggressively expand its reach to customers, continue to invest
in brand building activities and ensure customer and shareholder delight.
Operations
Hero has its operations in five units across the nation, namely
1.
2.
3.
4.
5.
Performance
Current events
The biggest current happening within Hero was Sunil Munjal no longer being the
promoter by selling out his share to the family that he received after the death of
Brijmohan Lall Munjal.
Hero recently announced an investment of Rs 850 Crore in R&D in its Jaipur facility.
The management is aware that after losing the technology support of Honda, the
organisation needs to develop technology of their own to stay competitive and
remain as the leader.
Also, there was a change in the top level management as Rajiv Bhargava was
appointed as the Head of Strategy in November 2013 to give a new direction to the
company.
Hero is working aggressively on its global presence and the steps to improve it. It
recently formed a strategic partnership with Speedbrain GmbH, the German off-road
racing specialist to form HeroMotoSports team which made its debut in Morocco bike
rally and will be participating in other bike rallies across the globe leading up to the
Dakar rally 2017. The Hero MotoSports Team Rally will also assist in development
and testing of new Hero vehicles concepts, using the data collected from the races.
It also extended it sponsorship in the T20 Caribbean Premier League and will be
continued to call the 'Hero Caribbean Premier League' until the 2018 season.
Pawan Munjal, Chairman, Managing Director and CEO, Hero MotoCorp Ltd, said:
"The extension of our title sponsorship of the Hero CPL is also in keeping with the
increasing global presence of brand Hero, which is now present in 30 countries
across Asia, Africa and South and Central America. The Hero CPL is now set to
become one of the important events in Hero's annual global sporting calendar."
Hero to take on Honda in the scooter segment will be introducing a 125cc scooter as
a direct competition to Activa 125.
TIMELINE
GREENOVATION STRATEGY
During FY 2015-16, they participated in the 16th Auto Expo in New Delhi with the
theme Greenovation, reiterating their commitment to develop innovative
technologies for a sustainable future. The highlight of the Hero Greenovation pavilion
was a Green Wall consisting of over 8,000 live plants. It was a replica of the wall at
our Garden Factory (Manufacturing Plant) in Neemrana, Rajasthan, which generates
oxygen equivalent to the daily requirement of 3,700 people.
The pavilion displayed interesting thoughts and selfies of customers and fans, who
are the real Hero. Formed in the shape of a heart, multiple screens of the Digital
Heart were continuously refreshed to show the latest content throughout the day.
The pavilion also offered numerous engagement opportunities for visitors, making
the time spent at the Hero stall a memorable one.
Besides, there were stunt zones, wheelie machines, RFID integrations, Instagram
anti-gravity booth and 360-degree immersive video experiences at the stall. They
unveiled an exciting new range of products and concepts at the Auto Expo. They
also showcased two new products, new Splendor iSmart 110 and Xtreme 200 S as
well as two concept vehicles; XF3R and Duet E.
Motor Shows
NADA Motor Show: Held in Kathmandu, the motor show saw a footfall of 50,000+
people spanning over five days, which had participation from major two-wheeler and
four-wheeler automobile companies. Colombo Motor show: The event saw a
footfall of over 40,000+ people. The key models such as Dash scooter, received
excellent feedback and Xtreme Sports stunt show was a showstopper at the event.
Istanbul Motor show: Five new models, Dash, Duet, Xtreme Sports, Hunk and
Karizma R, were showcased to the public in the motor show. The show witnessed a
footfall of over 120,000 people.
Innovative Measures
SWOT Analysis of Hero Moto Corp with USP, Competition, STP (Segmentation,
Targeting, Positioning)
Hero Moto Corp (Hero Honda)
Parent Company
Hero Group
Category
Motorcycles, Scooters
Sector
Two-Wheelers
Tagline/ Slogan
USP
Segment
Young boys looking for fast sporty bikes for Indian roads
Target Group
Positioning
Brands
1. CBZ
2. Karizma
3. Passion
4. Pleasure
5. Splendor
6. Impulse
SWOT Analysis
Strengths
1. Huge brand equity and one of the biggest players in the two
wheelers Indian market
2. Excellent R&D, and wide variety of products in every
segment.
3. Excellent distribution, over 3000 dealerships and service
centers
4. Good advertising and excellent rebranding from Hero
Honda to Hero Moto Corp
Weaknesses
Opportunities
Threats
Competitors
7. Ducati Superbike
BCG Matrix
SPLENDER
SERIES;
PASSION
SERIES;
KARIZMA
PLEASURE
HUNK;
PLEASURE
CD DELUXE;
CD 100SS:
CD DAWN
ACHIEVER;
GLAMOUR
PEST ANALYSIS
P O LIT IC A L
Land
a cq u isitio n
Im p o sitio n
o f Ta xe s
T E C H N O LO G I
CAL
Te c h n ic a l
c o lla b o arti
o n w ith
S te y r
D ia m le r
Pu c h
L a rg e
in v e stm e n t
of Rs 2500
c ro re to
b u ild a n
in te g ra te d
R & D c e n tre
in
R a ja sth a n
Te c h n ic a l
and
fi n a n c ia l
c o lla b o ra ti
on
w ith S h o w a
c o rp o ra tio n
Ja p a n
S O C IA L
E C O N O M IC A L
G re e n
Tec h n o lo g y
S a fe
m a n u fa ctu r
in g
R a in w a te r
h a rv e stin g
T h e g re e n
su p p ly
c h a in
Vo c a tio n a l
tra in in g
cam p
S a fe rid e r
p ro g ra m
C h a n g in g
life s ty le
a n d h ig h
q u a lity
D e lu xe
se g m e n t
c a te g o ry
4 % exc ise
cut and 1%
c u t in C S T
H ig h e r
in te re s t
ra te a n d
fu e l p ric e s.
References
http://www.heromotocorp.com/en-in/about-us.php
http://www.business-standard.com/article/companies/pawan-munjal-reappointedhero-motocorp-cmd-ceo-116080900506_1.html
http://www.hindustantimes.com/business/how-hero-taught-itself-to-stay-high-withouthonda/story-UFURzk5XFAj0qTorQz2EPP.html
http://www.livemint.com/Companies/cxCECC6CWlAGNBOaxJJY4L/Sunil-Munjalceases-to-be-promoter-of-Hero-MotoCorp.html
http://www.heromotocorp.com/en-in/investors/annual-reports-archives.html
http://www.telegraphindia.com/1160818/jsp/business/story_102994.jsp#.V8J7rph96h
d
http://www.livemint.com/Sundayapp/I52zvm28fnfHM3kJyRYwRK/Bad-loan-woesHero-on-a-roll-and-Michael-Phelpss-gold-rush.html
http://timesofindia.indiatimes.com/business/india-business/Strategy-war-escalatesbetween-Hero-Honda/articleshow/45636300.cms
http://www.thehansindia.com/posts/index/Auto-/2016-07-20/Hero-Announces-NewStrategy-To-Counter-Honda/243419
http://www.thehindubusinessline.com/companies/hero-motocorp-names-rajatbhargava-as-head-of-strategy/article5325734.ece
http://forbesindia.com/article/special/hero-motocorp-opens-rs850-crore-rdcentre/42635/1
http://www.newkerala.com/news/2016/fullnews-62961.html
http://economictimes.indiatimes.com/news/sports/hero-motocorp-extends-titlesponsorship-of-caribbean-premier-league-until-2018/articleshow/52522639.cms