Hero Honda Marketing Mix

“We, at the Hero Bunch are once striving for synergy between technology, systems, and anthropological media to prepare effects and utilitys that encounter the character, achievement, and appraisement aspirations of the customers. While doing so, we haunt the eminentest standards of ethics and societal responsibilities, eternally innovate effects and rulees, and disend teams that keeps the momentum going to engage the congregation to superiority in the new millennium” 2TODAY, THE HERO GROUP IS INTEGRATED BACKWARDS AND HAS 18 COMPANIES IN ITS FOLD COMPANY Hero Honda Motors Limited Hero Cycles Limited Munjal Showa Limited Sunbeam Auto Limited Majestic Auto Hero Exports Munjal Auto Industries Ltd Rockman Cycle Industries Highway Cycles Hero Honda Finlease Ltd Hero Auto Limited Munjal Castings Satyam Auto Components Ltd Hero Financial Services Ltd Hero Oppidan Utility Ltd Hero Global Artifice Munjal Sales Corporation Easy Bill Limited PRODUCT/ SERVICE Motorcycles Cycles, Auto Components, and Cold Rolled Steel Astound Absorbers Aluminium Castings Mopeds, Scooterette, and Health Care Equipment International Trading Arm Auto Components Cycle and Auto Components Cycle Components, Auto Components and Machine tools Financial Services Two-Wheelers Non Ferrous Castings Sheet Metals and Fabricated Auto Components Financial Services BPO Services, IT, Inoculation & Education Effect & Engineering Artifice Disposal Payment utilitys 3 THE GROUP HAS BUILT AN IMPRESSIVE PORTFOLIO OF BUSINESSES THE GROUP HAS BUILT AN IMPRESSIVE PORTFOLIO OF BUSINESSES Hero pose in India by sales* Congregation Portion Chaffer chief Top 3 • • • • • • • Hero Honda Motors Hero Cycles Munjal Showa Highway Cycles Rockman Cycles Munjal Auto Industries Ltd. SunBeam Auto • • • • • • • Motor Cycles Cycles Astound absorbers Cycle components Cycle components Auto components Castings * For a preferenceing portion 4 SNAPSHOT OF HERO GROUP’S ACHIEVEMENTS SNAPSHOT OF HERO GROUP’S ACHIEVEMENTS Figures in USD preferenceiteWorld’s catholicst two-wheeler creator Owns world’s biggest selling motorcycle stigma – Hero Honda Splendor World’s catholicst bicycle creator Hero Honda incompletest top 3 Indian companies by Far Eastern Economic Review, 2002 Deep chaffer sharpness delay 5000 outlets 22,000 plus employees Balance 55 preferenceite bicycles and 7 preferenceite motorcycles on Indian roads Ranked No. 1 incompletest Indian automobile companies by Businessworld (Jan. ‘03) “Entrepreneur of the Year” allot to the Bunch Chairman by Ernst &Young Hero Bunch Financials Gross Revenues CAGR = 29% 1810 510 1998 Net Profits CAGR = 40% 2003 137 25 1998 Networth CAGR = 26% 2003 315 99 1998 2003 5 THE GROUP HAS WON SIGNIFICANT ACCLAIM AND RECOGNITION WITHIN THE GROUP HAS WON SIGNIFICANT ACCLAIM AND RECOGNITION WITHIN THE BUSINESS COMMUNITY THE BUSINESS COMMUNITY “One of top 30 stigmas in India” “Hero Honda incomplete top 3 Indian companies” Indian Businessman of the Year allot for Bunch ChairmanEntrepreneur of the Year allot for Bunch Chairman from Ernst & Young Economic Times - Harvard Profession School allot for Excellent Oppidan Achievement Group’s administration title acclaimed by • INSEAD, France • London Profession School, UK • World Bank Two of the bunch companies are the world’s catholicst creators Hero Honda – two wheelers and Hero Cycles Bicycles 6 HERO GROUP’S TRACK RECORD HAS ALSO BEEN ACCLAIMED BY HERO GROUP’S TRACK RECORD HAS ALSO BEEN ACCLAIMED BY Boston Consulting Bunch has ranked Hero Bunch as one of the top ten Profession Houses on Economic Prize Added (EVA), in India Balance Drive Magazine, May 2002 Hero Honda Is World Genesis Numero Uno!Hero Honda Is World Chief Net Profit CAGR of 50% in expressioninal five years The Hero Bunch is ordinary as a desire expression companion and an intellectual employer: Hero Group's companionship delay Honda Motors, Japan is almost 20 years old Hero Cycles Limited has not past a solitary man-day of genesis gone 1956 7 HERO HONDA MOTORS IS ONE OF INDIA’S MOST SUCCESSFUL COMPANIES HERO HONDA MOTORS IS ONE OF INDIA’S MOST SUCCESSFUL COMPANIES USD preferenceite Revenues Net Profits Chaffer divide 1,093 CAGR: 35% CAGR: 50% 100% = (mn units) Others 1. 4 3. 66 55 122 63 244 16 97-98 02-03 97-98 02-03 Hero Honda 37 97-98 45 02-03 “The HHML scrip has establish preference delay endowors as it has dedicated suitably eminent income” – Economic Times 8HERO HONDA WAS RANKED AT NUMBER 3 AMONGST THE TOP TEN INDIAN HERO HONDA WAS RANKED AT NUMBER 3 AMONGST THE TOP TEN INDIAN COMPANIES BY FAR EASTERN ECONOMIC REVIEW – 2002 REPORT COMPANIES BY FAR EASTERN ECONOMIC REVIEW – 2002 REPORT 9 FACTORS WHICH MADE HONDA, JAPAN PARTNER WITH HERO GROUP* Honda separated the Hero Bunch for a diversity of reasons, which included: Its engineering aptitude Relevance and salience of HERO stigma Disposal netoperation Commitment to Character Know-how and habit in handling catholic tome genesis and disposal Tight centre on financial and raw esthetic rulees Low employee turnbalance Cordial Industrial Relations * Source:London Profession School Fact examine, 2000 10 HERO CYCLES IS THE LARGEST PLAYER IN THE BICYCLE SEGMENT Sales: FY 2002-03* USD preferenceite • 132 (Cycles Business) 94 Sales of Hero Cycles is environing 1. times its biggest antagonist equable though Hero was not the tallest to set up cycles profession in India Hero Cycles has now haunted its chaffer chiefship pose balance the expressioninal 2 decades • 56 HERO Cycles Limited is a Guinness Book Annals holder gone 1986 as the world’s catholicst creator of bicycles. Engineering Exports Promotion Council has alloted HERO Cycles delay the Best Exporter Allot for the expressioninal 28 years in series. Source: Prowess 11 THE HERO CYCLES GROWTH HAS BEEN THROUGH A TIGHT FOCUS ON FOUR KEY FACTORS: Vision Aspiration of providing “cheapest” behavior to the deficientest of India’s deficient Action Introduce “Value for Money” effect Sturdier effect to encounter sylvan insist Ancillarisation and inconversant integration Once emend effectivity OutcomeProduct polite-mannered-mannered original Genesis extensive from 25 cycles a day (1956) to 19,500 cycles a day (2003) Competition shrank balance India from 100 creators to 4 elder players Maintaining Growth Spolite chaffers Sylvan Centre Effect Innovation Technical Alliances Integrated Backwards to continue consumecompetitive and thus spolite chaffer divide 12 HERO’S STRATEGY THAT MADE HERO CYCLES AND HERO HONDA GLOBAL LEADERS, REVOLVED AROUND 5 THEMES Hero Bunch NOT merely as a “low consume preparer” but too as “VALUE FOR MONEY” preparer Build tenacious alliances and harmonys delay all stakeholders in the tie Benchmark balance best global practices Effect Innovation care in soul the sensitivities of the target chaffer Tenacious civilizedization of achievement 13CONSEQUENTLY THE VALUE PROPOSITION BY HERO TO MARKETS WAS BASED ON Thorough intelligence of fast-changing consumer behaviour, new chaffer portions and effect opportunities through customer interaction ; feedback Investments in Technology upgradation Using Foreign collaboration to befriend in new artifice and genesis rulees Centre on “Quality” Productivity and Profitability 14 TODAY HERO GROUP EXPORTS PRODUCTS ; SERVICES ACROSS CONTINENTS Exports bicycles, cycle components, motorcycles, mopeds and castings to balance than 70 countries The “IT initiative” of the Bunch exports utilitys to US, UK ; Australia The Bunch encourages Vendors to be distribute of the Global yield tie 15TO PROVIDE QUALITY PRODUCTS AND SERVICES, THE GROUP HAS TO PROVIDE QUALITY PRODUCTS AND SERVICES, THE GROUP HAS JOINT VENTURES AND BUSINESS ALLIANCES WITH MANY WORLD JOINT VENTURES AND BUSINESS ALLIANCES WITH MANY WORLD CLASS COMPANIES CLASS COMPANIES EralMetall, Germany Universal Cycles Plc, UK StyerDaimlerPuch, Austria FienTools, Switzerland Aprilia, Italy National Bicycle, Japan Honda Motors , Japan Showa Mfg. Co. , Japan Siemens Info. Systems , India SAP, India Navision (Microsoft),India LiveBridge, USA “Hero Honda motors is the most lucky Honda junction risk worldwide” – K. Suzuki, Senior Managing Director, Honda Motor, Japan 16 HERO GROUP HAS ALWAYS BELIEVED IN GROWTH THROUGH HERO GROUP HAS ALWAYS BELIEVED IN GROWTH THROUGH PARTNERSHIPS AND SHARING THE FRUITS OF GROWTH PARTNERSHIPS AND SHARING THE FRUITS OF GROWTH International PartnershipsHero Honda Motors is the most lucky Honda junction risk worldwide, functioning for almost two decades The harmony delay Showa Mfg. Co. , Japan is balance 17 years old and Munjal Showa is the catholicst creator of astound absorbers in India Connection delay Other Stakeholders A catholic reckon of the 5,000 dealers invadetain had a lucky companionship delay the Bunch for balance filthy decades The Bunch has helped disend a catholic reckon of vendors who invadetain grown adesire delay the companies and hence invadetain a tenacious commitment in the prosperity of the profession The Bunch enjoys a very strong reference incompletest institutions including Banks, Central and State Governments 17HERO GROUP’S SUCCESS HAS ALSO BEEN THROUGH ITS SIGNIFICANT HERO GROUP’S SUCCESS HAS ALSO BEEN THROUGH ITS SIGNIFICANT INVESTMENT IN HUMAN CAPITAL INVESTMENT IN HUMAN CAPITAL Group’s Values • Anthropological principal is the key “asset” • Once endow in this asset Men-folks Productivity • Enhancing men-folks achievement and effectivity by - Inoculation - Reinoculation - Incentivisation Multiskilling • To aid in employability • Ensures tame restlessness balance trades 18 RECOGNISING SOCIAL RESPONSIBILITY, THE GROUP CONTRIBUTES RECOGNISING SOCIAL RESPONSIBILITY, THE GROUP CONTRIBUTES ACTIVELY TOWARDS WELFARE OF THE SOCIETY THROUGH ITS ACTIVELY TOWARDS WELFARE OF THE SOCIETY THROUGH ITS NUMEROUS SOCIAL INITIATIVES NUMEROUS SOCIAL INITIATIVES The Bunch has set up and is concerned delay: Schools • Colleges • Hospitals • Vocational Inoculation Centres • Promotion of Sports and Sports men-folks • Various brotherhood disclosement activities and in improving sylvan and oppidan infrastructure 19 THE GROUP HAS DIVERSIFIED INTO THE SERVICES BUSINESS FOR THE GROUP HAS DIVERSIFIED INTO THE SERVICES BUSINESS FOR GLOBAL CUSTOMERS AND ASPIRES TO BE A SIGNIFICANT PLAYER OVER GLOBAL CUSTOMERS AND ASPIRES TO BE A SIGNIFICANT PLAYER OVER TIME TIME • Hero’s conspicuous policy in all its professiones has been – World-class design administration Superior utility orientation Congregation Hero Oppidan Utility Division Activity BPO/ Call centre utilitys Inoculation and Education IT Services – •After attaining chaffer chiefship in motorcycles, Hero unwavering to invade into customer interaction utilitys and software utilitys accordingly it can best leverage its conspicuous skills/capabilities in these sectors Hero Global Artifice Effect Artifice ; Engineering 20 RATIONALE FOR DIVERSIFICATION INTO SERVICES BUSINESS FOR RATIONALE FOR DIVERSIFICATION INTO SERVICES BUSINESS FOR GLOBAL CUSTOMERS GLOBAL CUSTOMERS Hero Group’s Ability to Compete • The Bunch has a proven trail annals of managing desire expression harmonys delay its private as polite-mannered-mannered as global companions • The Bunch has demonstrated capabilities to wield a catholic pool of men-folks (22,000 employees) which is a pre-requisite for prosperity in this profession • The Bunch has suitably exceeded customer expectations by intelligence their needs twain explicit nd involved • The Group’ s prize propose is installed on providing prize for specie by managing consume (extraneously compromising on character) and fertile use of media • The Bunch has attained chiefship pose through its utility orientation Dedicated the India utility and the Hero Group’s attributes, BPO Services profession is a compelling fact for change delay a fairly eminent air of prosperity 21 HERO GROUP FINANCIALS – Balance the years 22 HERO GROUP: GROWTH IN REVENUES HERO GROUP: GROWTH IN REVENUES 2000 1800 1600 1400 CAGR = 29% balance the expressioninal 5 years 1455 1810 US$ Mn. 1200 1000 800 600 400 200 0 1997-98 1998-99 1999-00 510 618 829 1110 2000-01 2001-02 2002-03 23HERO GROUP: GROWTH IN NET PROFITS HERO GROUP: GROWTH IN NET PROFITS 160 140 120 CAGR = 40% balance the expressioninal 5 years 120 137 US$ Mn. 100 80 60 40 20 0 70 55 39 25 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 24 HERO GROUP: MOVEMENT OF RETURN ON EQUITY HERO GROUP: MOVEMENT OF RETURN ON EQUITY 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1997-98 1998-99 1999-00 2000-01 29. 3% 32. 3% 33. 50% 45. 80% 45. 90% 34. 2% Year 2001-2002 2002-03 25 SUMMARISING 26 HERO GROUP HAS BUILT LEADERSHIP POSITIONS PRIMARILY DUE TO ITS HERO GROUP HAS BUILT LEADERSHIP POSITIONS PRIMARILY DUE TO ITS BELIEF IN THE FOLLOWING PRINCIPLES BELIEF IN THE FOLLOWING PRINCIPLES Intelligence stakeholder (incl. nternational companions and customers) expectations and delivering prize for specie Managing harmonys Creating a Achievement civilizedization “Partnership Approach” delay ancillaries Fertile Current Asset Administration Accepting and using always changing technology as a facilitator Tenacious character and rule orientation 27 RESULTS OF GROUP INITIATIVES The Group’s philosophy of empowering and inoculation anthropological principal, use of misspend technologies, eternally entity end to the customer and haunting a strong operation environment delay the eminentest standards of ethics and oppidan governance has resulted in the Bunch companies excelling in their chosen opportunity through a utility lie year succeeding year, imported to imposing financials and strong income to all stakeholders 28 THANK YOU 29