WHAT IS POSITIONING?

 It is the act of designing the company’s offering and

image to occupy your distinctive place in the mind of the
target market.
 The end result of positioning is the successful creation of
the customer focussed value proposition,a core region by
the target marketship by the product.
 Positioning is’nt what you do to a product,positioning is
what you do to the minds of the prospect.
 The hero honda story began with a simple vision-
the vision of a mobile and an empowered india
powered by hero honda.This vision was driven by
hero honda’s commitment to customer,quality and
excellence and by doing so,maintain the highest
standard of ethics and societal resposibilities
 25 years and 25 million two-wheelers later,Hero
Honda is closer to fulfilling this dream.
 Hero honda two-wheelers have been on indian
roads since 1984 when Hero cycles ltd. Tied up
with Honda Motor company to start a joint venture.
 Hero Honda is taken to be the world’s largest
two-wheeler manufacturer.It is therefore no
surprise that there are more Hero Honda bikes on
this country’s road than the total population of
some European countries put together!!!
Hero Honda motorcyles are reputed for low
maintenance and high fuel efficiency.
These motor bikes ,including around 13 current
varieties with names like Hero Honda
Splendor,Glamour,CBZextreme and 1 scooter and
the hero honda pleasure,are quite popular with the
Indian two-wheeler consumers.
These two wheelers are for the middle class
ranging from Hero Honda two wheelers at around
Rs 37,000 to 83,000.
BIKES FROM HERO
HONDA
 CD DAWN
 CD DELUXE
 SPLENDOR PLUS
 SPLENDOR NXG
 PASSION PLUS
 SUPER SPLENDOR
 GLAMOUR
 ACHIEVER
 CBZ XTREME
 HUNK
 KARIZMA
 PLEASURE
PROMOTIONAL STRATEGIES
OF HERO HONDA
1. Brand ambassadors of hero honda-
Hero honda has roped in film actor
Hrithik Roshan as its brand
ambassador.
 Brand ambassadors endorse the
company products,attend corporate
and brand events and help promote
its “we care” campaign.
 The latest commercial featuring
Hrithik Roshan,Priyanka Chopra and 6
cricketers,is perhaps the longest ad of
3 minutes.
 PROMOTIONAL POLICY:
 Company gives ad in different media
vehicles time to time.
 Company also organises free service
camps every year.
 Also takes part in trade fairs.
 Hero Honda with the help of ICICI
provides loans to the customers for
loans for bikes.
 Gives huge commission to the
dealers.
 ADVERTISEMENT
1. Through Hero Honda sa re ga
ma pa challenge 2009-This
show on zee tv is the 3rd
installment of the series is a
way to advertise hero honda.
2. Through hero honda roadies.
3. Hero Honda is rock solid on its
top position-The boom in the
automobile industry has
benefited the tv channels in
terms of advertising
revenues.Hero Honda Motors
Ltd. was the top advertiser in tv
advertising in 2002.TVS holds
the 2nd rank while Bajaj holds
the 3rd rank.
 MARKET SHARE
 Hero Honda Motors Ltd. on 14 july
2009 reported a forecast-beating
7.1% rise in net profit.Helped by
falling commodity prices,a cut in
excise duties and sales in rural areas.
 Hero Honda’s closest rival,Bajaj Auto
ltd,2nd week of july,2009 reported a
23% drop in net profit for its fiscal
third quarter as a lack of financing
and high interest rates crimped
demand.
 Hero Honda was not affected,as 60%
of its revenues comes from rural
markets,where purchase are less
reliant on loan financing than in
urban areas and where its 100 cc
bikes are popular, munjal said.
 TABLE TO SHOW MARKET SHARE
Company Apr-jun Apr-jun Growth Market RuralmUrban
2008-09 2009-10 (%) share arket market
(%) share share

HERO 877089 109499 24.84 51.26 10% 25%

HONDA 6
BAJAJ 391100 331731 -15.18 15.53
AUTO
TVS 292530 315785 7.94 14.78

HONDA 226068 284890 26.01 13.33

TOTAL 1865767 213586 14.48

MARKET 9
 ATTRIBUTE POSITIONING-
It is a positioning strategy
in which a company
positioned itself on an
attribute

SPLENDOR
 The world’s single largest
selling model for over 3
successive yrs.
 setting a new record of
selling 5 millon units.
Maximum mileage of 85
kmph.
Useful for longjourneys.
Double-cradle frame gives
the steadiness in biking.

PASSION PLUS
 Is a bike meant for the city
commuter
 Gives an easy ride and
easy handling .
 GLAMOUR
 Glamour,the name tells all.
 Biker’s who prefer stylish looks
in bikes to come with 4 essential
attributes.
 Reaonable price
 Ease of handling
 Good after-sale maintenance
support and acceptable resale
value.
 Its Looks-Black alloy
wheels,large petrol tank with
eye-catching graphics.
 60-62 kmpl mileage with 13.6 lts
tank capacity.
 Comfort-night riding safety,good
balance and low engine noise.
 BENEFIT POSITIONING
 It is the type of positioning in
which the product is positioned as a
leader in a certain benefit.
 Hero Honda CD-Dawn,CD-Deluxe
comes under this category.
 CD-Dawn is a value-for-money bike.
 It is a beginner’s bike well tested on
indian roads and proven in city
conditions.
 Having features like fuel
efficiency,economy and
dependibility,the bike has gained
popularity.
 The no-frills CD-Dawn is the
cheapest bike till date from the
Hero Honda stable.It has ex-
showroom price of Rs.32,000.
 Hero Honda CD 100 was india’s
first 100 cc 4 stroke bike.It was
launched at a time when 2 stroke
scooters and motorcycles ruled
roots in india.
 Therefore it is said,”It was
Munjal’s long-cherished desire to
produce scooters,destiny had
other plans.It was a blessing in
disguise.”
CD-Deluxe
 It is the epolished version of CD-
Dawn.
 Like CD-Dawn it is also a
beginner’s bike.
COMPETITOR POSITIONING
 It is the positioning strategy in
which a product is claim to be
better in some way than a named
competitor.
 It is also known as competitive
positioning.
 Bajaj has been the major
competitor of Hero honda.
 Hero honda has been responsible
for making the market ready for
the premium bikes of Bajaj.
 Hero honda CBZ prepared the
market for the 150cc pulsars .
 So will hero honda take the
bait again this time and pull
out something from its joint
venture partner honda’s
hat..??

 Just a fuel injected karizma

would be playing catch with
bajaj instead of taking the
stakes higher.

 SO WHAT’S UP HERO
HONDA…….???
A 300cc with fuel injection
….??? May be a 250cc
twin…??? Or will bajaj take the
initiative this time and surprise
us all….??
Bajaj has been smart enough to use the same
pulsar platform to push the envelop further for
180cc. In 2001 and now the 220 cc pulsar in 2007.
Using the same platform has ensured that there
are tremendous cost savings.
Similarly the Karizma launched in 2003 prepared
the market for 200 cc bikes .
 It is clear that hero honda indeed has been the
pioneer in introducing new bikes but Bajaj has
been the shrewd and smart fast follower .
Right now the pulsar 220 DTSF-I with 20 bhp
fuel injection,rear discs, the fat tube less tyres, the
projector beams, the full digital speedo just
manages to out do the Karizma… leaving hero
honda with a challenge to push the envelope once
 USE POSITIONING
 In this strategy ,the product is
positioned as best for some use
or application.
 The Hero Honda super splendour
comes under this category.
 It is not a bike to race with but
one you can depend on to get
you to your destination and back
in the city safely and
economically.
 The super splendour gets a
futuristic quantum core engine
developed for the indian
customers,powers hero honda’s
new offering,the “sarva gun
sampanna”super splendor.
 USER POSITIONING
Positioning the product as best
for some user group is called
user positioning.
Hero Honda pleasure comes
under this category.
It is a machine mainly targeted
for the women audience.
It has a catchy tagline-”Why
should men have all the fun”.
Hero honda is positioned as the no 1 two
wheeler company in the whole world.
Its growth has kept compounding. The
company crossed the ten million unit milestone
over a nineteen yr span.
It has scaled this to 15 million units in just 5
yrs.
Hero Honda sold more two-wheelers than the
2nd ,3rd and 4th placed company.
 Hero honda two-wheelers have been on
indian roads since 1984 when Hero cycles ltd.
Tied up with Honda Motor company to start a
Over the course of two & a half decade they
stuck to respective strengths.
It is one of the world’s technology leaders in
the automotive sector.
Honda has been able to provide technical
know-how,design specificatios and R&D
innonvations.
It has led to the development of world-
class,value-for-money for two-wheelers.
 Setting up an extensive distribution networks
and providing insights into the mind of Indian
customers.
It has sold and serviced through a network of
over 3500 customer-touch-points .
 It has built two world class manufacturing facilities at
DHARUHERA and GURGAON.
 3rd -Most sophisticated plant at haridwar.
 Thrust on quality
 Key for the company is to concentrate on quality in
products and services.
 To the previous yr’s strike by the raw material’s price
twirl in other companies HMSI too added in that.
 There is some enhancement yr on yr but the company
has not attained a pleasing level.
NEW PERFORMANCE
RECORDS
 Sells over 2 million motorcycles in 2003-04.Highest
turnover in the Indian two wheeler industry.
 Total Turnover for the year up by 15% to Rs.5997 crore.
 Total motorcycle sales up by 23%.
 PAT increases by 25%.
 5 successful model launches drive 4% growth in market
share to 48%.
 Announces 500% final dividend,totaldividend 1000% for
the year.
 Market capitalisation crosses Rs. 10,000.
 PERSON BEHIND THE EXCELLENCE
OF HERO HONDA
 Dr.Brijmohan lall Munjal, chairman of the Hero Honda has been
conferred the prestigious Padma Bhushan Award for his
contribution to the trade and industry.
 Dr munjal is considered to have led Hero Honda from the front to
establish it as a world number one two wheeler company.
 As an true entrepreneur,he set up Hero cycles factory in 1956
which engaged in manufacturing complete bicycles and went o
to become the world’s largest bicycle producer in 1986,a
position it has held since then.
 In 1984, he started Hero Honda,the joint venture of Hero with
Honda motor company Japan.
 The company heralded the two wheeler revolution in India and
became the world’s largest two wheeler company in 2001 and
continue to hold it ever since.
 Today more than a crore satisfied Hero Honda customers bear
the testimony to dr munjal’s philosophy and performance.
 SWOT
ANALYSIS
 STRENGTHS
 Huge brand equity/reputation among
customers.
 Research and development-due to joint
venture with japanese jiant-HONDA.
 Models/products in almost every bike
segment.
 Healthy growth in profits.
 Brilliant relations with customers and dealers.
Low cash reserves due to massive dividend
payouts.
Virtual absence in the highly lucrative bike
segments.
imports >31% of its spare parts
requirements.
Slow to react to market changes- slow to
innovation
Too much dependence on few models.
 OPPPORTUNITIES
 HHML can still make it up by launching a
strong model in 150cc segment.
 125cc bike segment-this segment is yet to
pick pace.
 Exports market is yet to be properly
exploited HHML can still make it.
 THREATS
 All major bike makers in the world are lining
up for India.
 The growth in two wheeler market is slowing
down.
 Low cash reserves.
 HHML has losing the foothold in the exports
market which is now dominated by a Bajaj.
 CONCLUSION
 Hero Honda has been the
pioneer in introducing new
bikes.
 Its brand image is unbeatable.
 Hero honda is responsible for
improving the Indian market
of two-wheelers.
 The company’s meteoric
growth in the two-wheeler
market india stems from an
intrinsic ability to come closer
to the customers.
 It has the highest standards of
ethics and social
responsibilities,innonvative
products and process and
develop teams that keep the
momentum.
  ADITI OBEROI
 MEENAL
 SHILPA KAPOOR
 TANUSHREE
ROY