Discussion of the brand strategies of Hero Pleasure

1. HERO PLEASURE
BY -
RICHA SAHIJANI (2014228)
RIPAKSHI ARORA (2014230)
SAKSHI ARORA (2014248)
SAMARTH SRIVASTAV (2014249)
SAMPRITTI DATTA (2014250)
SANDIP KR. AGARWALLA (2014251)

2.  World’s largest market with 13.5 million units sold last year.
 Market grew by 14.8% from last year.
 Motorcycle sale grew at only 10%.
 Scooters sale grew at a whopping 30%.
 Now scooters occupy 22% of the total 2W industry.
 Every fourth two wheeler sold is a scooter.
The Two Wheeler Industry in India

3. Current Brand Analysis
Segmentation-
Young girls who are
chirpy and hep.
Target-
College and school
going girls between
the age group of 16-
25.
Positioning-
Girls who want to
enjoy every moment
in life and want to
live free.
Value proposition-
Why should boys
have all the fun?

4. Competition
BRAND POSITIONING USP
HONDA ACTIVA FOR MEN AND FAMILY COMMUTING SUPERIOR BRAND EQUITY OF
HONDA ENGINE
TVS SCOOTY LIGHTWEIGHT WITH DIFFERENT COLOURS FOR YOUNG WOMEN
EASY AVAILABILITY OF SPARE
PARTS
HERO PLEASURE FOR THE GIRLS WHO WANT TO ENJOY EVERY MOMENT IN LIFE;
FREEDOM
LARGEST MARKET PLAYER IN TWO
WHEELERS

5. Communication Strategy & Brand Association
 TVC – Alia Bhatt riding through the beautiful countryside
of Manali while desi rap music plays in the background
 Print – Ads in Newspapers
 ‘Just 4 Her’ showrooms
 Digital – Official Facebook Page with 85000+ Likes
Latest TVC
Pictures in different colours
Promotes campaigns like
#VibrantPleasure
#GoGearless
#BeatTheHeat, etc.

6. BRANDEQUITY
Loyalty Measure
Price Premium:
Hero Pleasure INR 46,000
Kinetic Zing INR 32,000
TVS Scooty INR 42,000
Customer Satisfaction
Sales -92,000
Market share - 7.5 %
Fastest growing scooter in the 75-125cc category by SIAM
Perceived Quality/ Leadership Measures
High Perceived Quality
Wheels of freedom & liberation for women
Leadership and Popularity
Market leader in its target segment

7.  Perceived Value
High value in terms of quality, aesthetics and functional efficiency
 Brand Personality
Pleasure drives freedom in the lives of young Indian women
Value proposition : “Why should boys have all the fun?”
 Organisational Associations
Hero Honda Product
After demerger, Hero is a strong powerful brand
 Brand Awareness
Tagline: one of the most famous catch phrases of all times
Commercials were very interesting and meaningful and attention seeking
Launched 21 exclusive ‘Just 4 her' showrooms
 Distribution Coverage
Commendable Distribution, easily available in Tier II and III cities besides metros
BRAND EQUITY CONTD……

8. Reasons for Vertical Extension
Coming Soon
Hero Dash 110 cc
Hero Dare 125 cc
Hero ZIR 150 cc
Hero MotoCorp R&D spends rose six-fold in fiscal 2015
The combined spending of Rs 723 crore was nearly 3% of Hero
Moto-Corp's
net revenue of Rs 27,585 crore, compared with about 0.5% in
fiscal 2014.

9. LAUNCHING THE ALL NEW FINESSE

10. VERTICAL EXTENSION
Understanding the Product
Points of parity:
 Displacement 125cc
 Mileage-50 kmph
 Kick and self-start
 USB charging
Points of difference:
 Metallic body with gloss finish
 New improved design
 Available in rich and elegant hues
 Larger wheel base
 LED headlights
 Remote control locks
Understanding the customer
Brand Personality:
 Elegance, luxury, style,
 Feminine vehicle.
Brand Associations:
 Super-models to promote Finesse.
 Brand stands for itself.

12. Segmentation :
1) Geographic – Tier I cities – Hero
Showrooms
2) Demographic – Affluent , young
women
3) Psychographic – Independent
4) Behavioural - Trend conscious
women
Target : Women riders in tier 1 cities in age
group 18-30
Positioning : Young affluent women
conscious of social status and who love to
flaunt it
Value Proposition: Elegance. And You.
STP and Value
Proposition

13. Brand Equity of Hero Finesse
Loyalty measures
- Price Premium
Priced at INR 73000
- Customer Satisfaction
Functionally rich offering
Perceived Quality
High on functional benefits- a status symbol
Leadership and Popularity
Aiming at a market share of 5% within the first year of the launch
Perceived Value
Reflects the personality of an affluent Indian woman who is trend
conscious
Brand Personality
Freedom, class, luxury, style, youth
Organizational Associations
Very strong- a product of Hero
Brand Awareness Measures
High brand recognition, brand recall,
Hero - a top of the mind brand
Market Behaviour Measures
- Market Share
current market share – 16%
- Market Price and Distribution coverage
Priced at a premium
In showrooms of Tier I cities

14. Product
Description Price Units Revenue
Hero Finesse (Online +
Offline ) 73000 25000 ₹ 182.5 crore
Investment plan
Expenditure Share
Material Cost 66-67% ₹ 120.45 crore-122.5 crore.
Operation Cost 8% ₹ 14.6 crore
Advertising Cost 8% ₹ 14.6 crore
Taxes and Duties 6% ₹ 10.95 crore
Employees 3% ₹ 5.475 crore
Interest and depreciation 2% ₹ 3.65 crore
Profit 6% ₹ 10.95 crore.
INVESTMENT PLAN

15. TIMELINE FOR IMPLEMENTATION
Aim Task Duration Responsibility
To make a
premium
Scooterette
Product
Development
15/8/15-31/12/15 R&D Dept.
Manufacturing 1/1/16-15/2/16 Production Dept.
Logistics &
Distribution
1/2/16-28/2/16 Logistics Dept.
Marketing &
Promotion
1/2/16 Onwards Marketing Dept.
Sales Launching and
Sales
1st March Onwards Dealers

16. Advertising
TV ads on premium channels, Print media-
magazines( Cosmopolitan, Femina, Vogue
etc.)
Social Media Advertising
Facebook, Twitter, Tinder, YouTube, Instagram
Sponsorships (Event Marketing)
Promotion on airport lounge
COMMUNICATION STRATEGY

17. Future Endeavors
 Maintenance services at your door
 Branded merchandises
 Social campaigns
 Lottery
 Loyalty points at petrol pumps
Expected Outcome
Current Market Share (16%)=475200
Expected market share (25%)=742500
FINESSE expected market share (7%)=51975

18. THANK YOU