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Future Strategy for
Hero without Honda



                      Hero
Hero Honda Motors (HHML)
 World's largest two-wheeler manufacturing company
 Three manufacturing facilities:
     Dharu...
Industry:




            Two Wheelers: 76.23 %


                        Society of Indian Automobile Manufacturing 2011
Two Wheeler market:




 Motorcycle leading
Major Players
 Hero Honda
 Bajaj Auto
 TVS
 Yamaha
                       Total             Executive class
 Suzuki
...
Separation
Reasons:
 R & D capability sharing by Honda
 Pollution norms
 Royalty being paid by Hero to Honda: 4-5%
 Ho...
SWOT
             •Strength                      Opportunity
  •Good Quality                   •Exports market:
  •Leader ...
Stakeholders
 Suppliers:
    350 component suppliers
    Connection with the Munjal family but supplying parts to Honda...
Future strategies
 Product Branding
    Splendor
    Passion
    Karizma
 Already started work with JWT marketing com...
Global Branding
 Marketing focus:
    Major Sports events
    Targeting young consumers


 Quality Image:
    Huge in...
Build Indigenous Research & Development
 3 years for capability development
    In-house
    Develop indigenous product...
Global markets
 Huge potential
    Bajaj upto 30% of sales

 Major markets:
    African continent
    South East Asia...
Possible Impact on industry
 Market
   Increased Competitiveness
   Price war or Variant flooding

 Consumer
   More ...
Thank You
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Hero honda - Motorcycle

  1. 1. Future Strategy for Hero without Honda Hero
  2. 2. Hero Honda Motors (HHML)  World's largest two-wheeler manufacturing company  Three manufacturing facilities:  Dharuhera  Gurgaon  Hardwar  Incorporated in 1984 as a joint venture (JV):  Honda Motor Company of Japan  Hero Group India Hero  Munjal brothers brand for their flagship company Hero Cycles Ltd.  Both parties owned 26% each in the JV and the technology sharing agreement is renewed every 10 years.
  3. 3. Industry: Two Wheelers: 76.23 % Society of Indian Automobile Manufacturing 2011
  4. 4. Two Wheeler market:  Motorcycle leading
  5. 5. Major Players  Hero Honda  Bajaj Auto  TVS  Yamaha Total Executive class  Suzuki  Enfield  New  Harley Davidson Economy segment Premium segment
  6. 6. Separation Reasons:  R & D capability sharing by Honda  Pollution norms  Royalty being paid by Hero to Honda: 4-5%  Honda Motors • Separate brand increasing market share  Refusal of Hero Honda to merge the spare parts business with HMI
  7. 7. SWOT •Strength Opportunity •Good Quality •Exports market: •Leader 52% • Not explored yet as JV •Extensive Dealer network 550 constraint •3500 service centers •No Royalty: 4-5% •Strong marketing Weakness Threat •R&D: Dependent on Honda •Market competition: •Capacity constraint: •Honda, Bajaj 5.2million •R&D : Pollution norms •Financial weakness: Low cash as heavy dividend •No overseas market
  8. 8. Stakeholders  Suppliers:  350 component suppliers  Connection with the Munjal family but supplying parts to Honda as well  Honda started looking for new supplier base  Distributers:  Unique intangible resources that it has; superior brand image & reliability perception of its brand is the outcome of these intangible & tangible key assets  Key would be the close relation based on trust and long term relationships
  9. 9. Future strategies  Product Branding  Splendor  Passion  Karizma  Already started work with JWT marketing communications  Corporate Branding  Hero Cycle: May have negative impact  Separate as subsidiary with separate brand name
  10. 10. Global Branding  Marketing focus:  Major Sports events  Targeting young consumers  Quality Image:  Huge investment required for image as quality producer or transfer of image  International presence:  Sponsor/Participate Moto – GP
  11. 11. Build Indigenous Research & Development  3 years for capability development  In-house  Develop indigenous products  Scale up Hero Global Design  Possible Technological tie-up or Acquisition  MV Augusta – Italy  Megelli motorbikes- UK
  12. 12. Global markets  Huge potential  Bajaj upto 30% of sales  Major markets:  African continent  South East Asia  Middle East  Establish channel partners  Distribution  Marketing
  13. 13. Possible Impact on industry  Market  Increased Competitiveness  Price war or Variant flooding  Consumer  More options  Better quality  Past experience  Bajaj + Kawasaki : Doing well (Still together for premium segment)  TVS + Suzuki: TVS prospered, Suzuki struggling
  14. 14. Thank You
  • SejalGupta16

    Jan. 9, 2020
  • RajatBorundia

    Dec. 27, 2017
  • deepenbarai

    Apr. 24, 2014
  • aarti1313

    Aug. 27, 2013

Hero honda - Motorcycle

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