2. • “Hero” is the brand name used by the Munjal brothers in
the year 1956 with the flagship company Hero Cycles.
• It is a joint venture between India's Hero Group and Honda
Motor Company. It established in 1984 as the Hero Honda
company, India.
• During the 1980s, the company introduced motorcycles
that were popular in India for their fuel economy and low
cost.
3. "The majority of India lives in
rural areas and the government
is pumping in a lot of money
through various programmers.
Hero Honda is focusing a lot on
rural markets. Going forward, a
substantial industry growth is
expected to come from these
markets.”
- Pawan Munjal, MD and
CEO, Hero Honda Motors
Limited, in May 2009
10. HAR GAON, HAR AANGAN (EVERY
VILLAGE, EVERY COURTYARD.)
11. • 1,00,000 of 6,00,000
villages in country.
• Penetration in Rural
Market- 10%
• 500 Sales Representatives
to meet potential customer
(local people as sales
executives )
• Average of 16000 bikes per
month. ( sales )
Contd………!
12. CONTD…..!
These representatives
have been given work
tasks and not sale
targets - they need to
meet potential
customers and opinion
leaders in villages.
To strengthen their
network in rural areas,
the company started
sales, servicing and
spare part outlets in
small towns and
13. FOCUSING ON UPGRADING THE MODELS
The most successful
product is SPLENDOR
in rural market and the
company kept on
focusing on upgrading
the models so, then
they later came up with
SPLENDOR PLUS and
SPLENDOR NXG,
which provided extra
features and the
consumers were
satisfied.
14. COLLECTION OF DATA
Under the rural vertical, they started collecting a lot of data at rural touch
points;
many of their dealers are
now meeting,
-SARPANCHES,
-HEADMASTERS,
-AANGANWADI
- WORKERS
and other opinion makers
to understand the rural
consumer better.
16. Once you earn the villagers loyalty (and they are known
for their brand loyalty), it will be difficult for
competitors to take away your customers.
Conted…….
17. INTEGRATED RURAL DEVELOPMENT
CENTRE
Centre has been set up on 40 acres of land along the Delhi-
Jaipur Highway. The Centre-complete with wide approach
-ROADS,
-CLEAN WATER,
-AND EDUCATION FACILITIES
for both adults and children
The Foundation has adopted various villages located within
vicinity of the Hero Honda factory at Dharuhera for
integrated rural development.
18.
19. CHALLENGES …..
The rural consumer values
old customs and
tradition. They do not
prefer changes.
The Infrastructure Facilities
- Roads,
- warehouses,
- communication system,
- financial facilities are
inadequate in rural areas.
- Physical Distribution
bacame Costly
20. CONTD
The price its competitors
are also becoming the
threat. For example:
bajaj auto’s platina is
priced at 38,115.
The literacy rate is low in
rural areas as
compared to urban
areas.
This again leads to
problem of
communication for
promotion purposes.
21. Limited Dealership :-
The dealerships in rural areas
is limited because of which
the customer has to go to near
by city to buy the product.
Spare Parts :-
of Hero Honda are costlier than
other companies spare parts,
so there is problem for rural
people to afford.
22. WHY COMPANY CHOOSE RURAL
MARKET
Hero Honda has worked out a major
expansion strategy for the rural
markets and is planning to strengthen
retail financing to support the
initiative that could lead to setting up
of its own finance arm.
Pawan munjal, MD of Hero Honda, told
TOI that rural market would be a
special focus area for the company as
it is looking at new growth areas to
maintain sales momentum in a
shrinking market. "We have created a
special ‘rural vertical' to push growth
and this would spearhead our
expansion in the rural market,' Munjal
said.
23. CONTD
India's largest two wheeler company Hero
Honda Motors is spreading its wings to
capture the commuting bikers'
imagination in rural India, after
witnessing flat sales growth in 2007-08.
The two wheeler market leader plans to
cover 100,000 of the 600,000 villages in
the country by the end of this financial
year under a campaign named Har Gaon,
Har Aangan (every village, every
household).
24. CONCLUSION
Most of the Hero Honda Bikes are
purchased by young generation
18 to 30 because they prefer
stylish looks and rest of the
models of Hero Honda are
purchased more by daily users
who needs more average of bikes
than looks.
Hero Honda is considered to be
most fuel-efficient bike on Indian
roads.
Service & Spare parts are available
throughout India in local markets
also.
25. CONTD
While buying a motorcycle,
economy is the main
consideration in form of
maintenance cost, fuel
efficiency.
Hero Honda started growing in
rural market rapidly with its
add campaign and promotion
strategies in rural market.
