KADI SARVA VISHWA VIDHYALAYA

S K PATEL INSTITUTE OF
MANAGEMENT AND
COMPUTER
STUDIES(MBA)

PRESENTATION ON HERO
MOTO CORP.
GROUP MEMBERS ROLL NO
NANDANI DARSHITA 64
NASIT KINJAL 65
NAYAK MILAN 67
PATEL NIRAV 81
VYAS ANKITA 119
INTRODUCTION OF HERO
MOTO CORP.
Hero Motocorp Ltd. formerly Hero Honda, is an
Indian motorcycle manufacturer based in New
Delhi.

Hero Honda started in 1984 as a joint venture
between Hero cycle of India and Honda of japan.
The company is the largest two wheeler
manufacturer in India.

In 2010-11 both companies are separated and
Hero become HERO MOTOCORP LTD.
INTRODUCTION OF HERO
MOTO CORP. cntd
The new brand identity and logo of Hero
Motocorp were developed by the British firm
Wolff olins.

VISION & MISSION OF THE COMPANY

VISSION:
company's new identity, reflects its
commitment towards providing world
class mobility solutions with renewed
focus on expanding company's footprint
in the global arena.





Vision & Mission Continue.
MISSION:
Hero Motocorp mission is to become a global enterprise
fulfilling its customers' needs and aspirations for
mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand
advocates.

The company will provide an engaging environment for
its people to perform to their true potential. It will
continue its focus on value creation and enduring
relationships with its partners.

ORGANIZATIONAL STRUCTURE

DR.Brijmohan lall Munjal- Chairman.
Mr. Pawan Munjal- MD & CEO
Mr. Sunilkant Munjal- Joint MD
Mr. Pradip Dindodiya- Non executive & independent
director
V.P. Malik- Non executive & independent director
Mr. Sumankant Munjal- Non executive & independent
director
Mr. Paul Edgerley- Non executive
Dr. Anand Burman- Non executive & independent
director
M. Damodaran- Non executive & independent director
Dr. Pritam Singh- Non executive & independent director
Mr. Ravi Nath- Non executive & independent director

MILSTONES ACHIEVED BY
HERO MOTO CORP.
2011- New Licensing agreement sign between Hero and
Honda and Hero Honda renamed as Hero Motocorp.
2011- Launch new version of Glamour, CBZ xtreme and
Karizma.
2012- Migration of all the product to brand Hero.
2012- Strategic partnership with Erik Buell Racing(EBR) of
USA
2012- Bike of the Year Award 2012
2012- Business Standard Motoring Awards, 2012
2013- Neemrana Plant Foundation Stone laid
2013- 50 Million cumulative 2 wheelers production.
Major Players and Competitor
PRINCIPLE OF ECONOMICS
Hero Motocorp faces short run trade offs:

Hero invests Rs 450 crore in new R&D centre
Hero will invest Rs 450 crore for setting up its fourth
R&D facility in the country on the outskirts of Jaipur
in Rajasthan which would be operational by 2015.

In place of R&D here motor crop also can
invest in production, or advertisement.

PRINCIPLES OF ECONOMICS

PEOPLE RESPONDS TO INCENTIVES:

The concept of introducing
CELL START BIKES which
Lead to increase in the demand
for Hero bikes.

Most of the people like this type of bikes and they
respond positively to the incentive provide by Hero
Motocorp.
People response to
incentives
Hero is the Indias first company to offer a 5-year
warranty on all two-wheelers. This initiative has
resulted in strong customer commitment and trust,
which will further strengthen our market position.

5 years or 70,000 km on
motorcycles, whichever is
earlier;
5 years or 50,000 km on
scooters, whichever is earlier




PRINCIPLES OF ECONOMICS

THE COST OF SOMETHING WHAT YOU GIVE UP TO
GET IT

To purchase any product one have to pay for that
product in marketing language we called it as PRICE.
To enjoy the drive of Heros product one have to pay for
it.

This concept is not applicable to customer only it also
apply to Hero also. To purchase raw material to make
the product the have to pay for raw material.
PRINCIPLES OF ECONOMICS
GOVERNMENT CAN SOMETIMES IMPROVE THE
MARKET CONDITION:
Before 2011 there was a joint venture of Hero and
Honda. They were partners since so many years
and they penetrate the Indias two wheelers
automobiles sector.
Government gave green flag to the both the
company to do business in India so that market
condition will become fruitful.

PRINCIPLES OF ECONOMICS
Free Bike Service concept:
Service
Schedule:
ACHIEVER
Type of Free
Service
1st 2nd 3rd 4th 5th 6th
Validity in Kms
from the date of
purchase
500-
750
3000-3500 6000-6500 9000-9500
12000-
12500
15000-
15500
Validity in Days
from the date of
previous service
60 100 100 100 100 100
Paid Service
Each Paid Service needs to be availed after every 3000 kms or 90 days
from the previous service, whichever is earlier.
PRINCIPLES OF ECONOMICS
TRADE CAN MAKE EVERYONE BETTEROFF:
Hero Motocorp commences exports to Latin
America, Africa
NEW DELHI: In a bid to achieve its stated objective of
exporting a million unit over the next five years, World's
largest two wheeler maker, Hero MotoCorp commenced
its export operations to Africa, Latin and Central
America.

PAWAN MUNJAL(CEO) said: Our first consignments of
two-wheelers have already been shipped Peru in Latin
America, Guatemala and central America.
We shall also be dispatching the first lot of our two-
wheelers to Kenya too later this month.
FACTORS AFFECTING COMPANYS
PRODUCT
Rate of Inflation (7% in October 2013)
Competitors pricing strategy
Competitors marketing strategy
Government policy
Technological changes
Price of complementary goods



Newly Launched products
market
The major contributor of total sales is Hero MotoCorp which accounts for
around 40% market share as always. New launches from
Hero MotoCorp like Passion X Pro, Ignitor are doing
well as per company reports. The company is increasing
scooter manufacturing capacity to 60,000 units per month
from the current 54,000 units, thanks to its latest scooter
Maestro.
Overall Hero MotoCorp sold 5,04,271 units in February and total 10,59,068
units in the first two months of this year.
Read more at
SALES TURNOVER





We can see that their sales turnover was
continuously increasing till 2012, they were
earning profit but in 2013 there sales turnover is
decrease

YEAR SALES TURNOVER(IN CR)
2009 13,553.23
2010 16,856.43
2011 20,787.27
2012 25,252.98
2013 23,768.11
MARKET SHARE
45% market share in the domestic two-wheeler
market.
56% market share in the domestic motorcycle
market Team Hero.
Hero Good life is the industrys largest
customer relationship management program,
with 10 million members.


SUBSTITUTE WITHIN THE
COMPANY
Hero Moto Corp Achiever
Price Range: 59,425 to 59,425

Hero Moto Corp Glamour
Price Range: 54,025 to 56,025

Hero Moto Corp Hunk
Price Range: 67,725 to 70,725




SUBSTITUTE WITHIN THE COMPANY(CNT..)
Hero Moto Corp Impulse
Price Range: 70,500 to 70,500

Hero Moto Corp Passion Pro
Price Range: 45,350 to 51,500

Hero Moto Corp Pleasure
Price Range: 44,100 to 44,100



SUBSTITUTE AMONG
COMPETITOR
Bajaj Pulsar Price
Price Range : 60,539 to 68,697

Bajaj Discover Price
Price Range : 49,000 to 57,073


Honda Aviator Price
Price Range : 48,621 to 53,939



ELASTICITY OF DEMAND
As we know that inflation rate is continuously
increasing in the world. In October 2013 the inflation
rate in India is 7% which is very higher compare to
previous years.
Because of the inflation rate there is a increase in
the price of the material that are required to make
hero bikes and scooters. Raw material become
costlier and price of the bike is also increased.
Increase in the price lead to decrease in the demand
for the hero bikes.

Market share of Hero Splendor is decreasing and
it reach to 35% of the total market share which was
42% earlier.
ELASTICITY OF
DEMAND(cont..)
There is a drastic fluctuation in the sales of the
splendor bikes. So that we can call that elasticity of
splendor bike is greater than 1.
Ep>1
Diagram:

performance
During the fiscal year 2008-09, the company sold
3.7 million bikes, a growth of 12% over last year. in
the same year, the company had market share of
57% in the Indian market.

Hero Honda's bikes hero Honda splendor sale more
than one million units per year.

The company sold record 61,17,599 units of two
wheelers in the period of January-December
2011,a growth of19.2% over the calendar year of
2010 when it had sold 51,34,549 two wheelers.

SALES OF HERO BIKES
SALES TURNOVER AND TOTAL EXPENCE
CSR ACTIVITY OF HERO
RAMAN MUNJAL VIDHYA MANDIR:
Senior secondary school
1200 students, 61 teachers
Big play ground
Computer center
Library facilities
Ultra modern laboratory


CSR ACTIVITY OF HERO

PROVIDING CYCLE TO PHYSICALLY CHALLANED
PEOPLE:

Hero ensure that every person is taken care of. To identify
this vision, Hero supports physically challenged individuals
through diverse initiatives and encourages
them at every step of life.

KEY FINANCIAL RATIOS
Particular 201103 201003 200903 200803 200703
Liquidity Ratios
Debt/Equity Ratio 0.24 0.02 0.03 0.05 0.08
Current Ratio 0.40 0.57 0.50 0.56 0.57
Turnover Ratios
Inventory Turnover
Ratio
42.99 43.97 42.06 40.62 45.97
Fixed Assets
Turnover Ratio
4.99 6.37 6.08 6.44 7.05
Debtors Turnover
Ratio
172.92 129.92 60.54 38.06 46.74
Interest Coverage
Ratios
153.20 1349.44 705.13 706.14 774.98
Profitability Ratios
Operating Profit
Margin
13.66 18.03 14.51 13.06 12.02
PAT/Total Income 9.12 13.02 9.26 7.90 7.30
NPM (Net Profit
Margin)
9.33 13.30 9.46 8.04 7.43
Return on Capital
Employed
60.68 76.48 50.99 49.09 51.66
Return on Networth 60.05 61.43 37.77 35.48 38.30
OLIGOPOLY MARKET
As we earlier show that there are not many firms in
the two wheeler automobiles sector.
We can call Hero Motocorp as oligopoly market.

BIBLIOGRAPHY
http://www.heromotocorp.com/en-in/about-
us/about-us.html
http://www.heromotocorp.com/en-in/rider-
zone/bike-services-and-maintenance-
schedule.html
http://www.motorbeam.com/sales-figures/february-
2013-bike-sales-figures-
analysis/#FqEk2dKbSa62FqxQ.99
http://money.sulekha.com/hero-honda-motors_key-
financial-ratios