Automobile promotion management


Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. In this particular assignment I will be talking about promotion strategies by Hero Honda.


Market Targeting: Effective Segmentation Criteria to be useful, market segments must rate favorably on five key criteria: 1. Measurable, the size, purchasing power and characteristics of the segments can be measured. 2. Substantial, The segments are large and profitable enough to serve. A segment should be the largest possible homogenous group worth going after with a tailored marketing program. It would not pay, for example, for an automobile manufacture to develop cars for people who are less four feet tall. 3. Accessible, The segments can be effectively reached and served. Differentiable, The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs. If married and unmarried women respond similarly to a sale on perfume, they do not constitute separate segments. Actionable, Effective programs can be formulated for attracting and serving the segments.

Hero Honda is targeting at youth, Unicorn looked sportier than all the existing motorcycles in the premium segment and was pitted against Bajaj Pulsar, the leader with 75 percent market share in that segment.


Promotion: Above the line (ATL) is an advertising technique using mass media to promote brands. Major above-the-line techniques include TV and radio advertising, print advertising and internet banner ads. This type of communication is conventional in nature and is considered impersonal to customers. The ATL strategy makes use of current traditional media: television, newspapers, magazines, radio, outdoor, and internet. Hero Honda used Above the Line Promotion because in the Above the Line promotion co. members used advertisement through Radio, T.V., Newspaper and Other media communications. Place: Geographical Placing: - Geographical placing of the product has divided into 4 markets and these are: 1. Local 2. National 3. Regional 4. International Hero Honda used National Market for sale the Hero Honda Splendor.

Hero Honda is also planning an extensive marketing campaign with the launch, which would reflect the bike's contemporary styling and advanced technology. The integrated marketing campaign for ZMR will include outdoor media, Web, mobile, ground activations, print and electronic media, said the company.

Hero Honda Pleasure - "Why should boys have all the fun?"

Isn't that a must ride statement, that can tempt any girl to just buzz with the wind. The Hero Honda Pleasure is Hero Honda's maiden venture into the burgeoning gear-less scooter market. The pleasure has schemed its strategies to be the best seller by concentrating much on the interest of young girls who love to rock the field of glamor, luxury and comfort.

Eye catchy features: The Pleasure sports flashy colours, from Tahitian blue metallic, force silver to the ever trendy colour black. Multi-reflector headlight, body-coloured mirrors, multi-reflector indicators, trendy rear grip, modern tall light cluster, and a new age oval-shaped instrument panel all make the Pleasure a head-turner. For more comfort during the ride, the scooter is designed with broader seat that offers greater riding comfort. Capacious luggage space, has been configured which, is large enough to keep even a helmet.

The Pleasure is equipped with a technology, tuff-up tube and tyre combo that offers immediate remedy in the event of a puncture, by releasing an anti-puncture sealant gel. It is capable of attaining a top speed of 77kph.

Hero Honda ahead in introducing new technology

The Company has left the competition in the motorcycle segment far behind in volumes as its nearest rival, Bajaj Auto, is a distant second with a market share of around 28 per cent only. The company's success till date relates to the timely decisions regarding introduction of new technology products.

Hero Honda was the first company in India to set standards for fuel efficiency with the launch of a four-stroke motorcycle in the mid-Nineties. This decision is yielding good results even today as can be seen from an uninterrupted growth witnessed by the company in its sales turnover and profitability margins over the past several years. However, future growth in these financial parameters, to a large extent, would also depend upon the way competition gears up in the domestic motorcycle market from the local, as well as foreign players.

An eye on the customer

In an effort to enhance value for customers, the company has initiated the "Rs 1001 customer price" benefit program across all its models. In addition, the passport program -- which entitles a customer to a Rs 1 lakh accident insurance, lucky draws, gifts against redeemable points, cash discount on consumer durables, free tickets to company sponsored events, etc.- has met with an encouraging response (it has attracted around five lakh members to date) and is expected to continue its success into the future as well.

Hero Honda: A 'passion' for growth

Hero Honda has come up with yet another year of sharp growth in financial performance. The company has developed this ability to spring a surprise in terms of outperforming expectationsThe increase in sales volume and improvement in realization have both played a role in pushing up the turnover. The change in product-mix in favour of higher value products has resulted in improved realization for the company. The growing popularity of the Passion model appears to be the key factor behind improvement in unit realization.

Aided by the emphasis on indigenisation, the company has managed to achieve better operational efficiency. The positive impact of these measures is reflected in the form of lower raw material cost (in relation to sales).

The company is all set to make a foray into the lower price segment of the four-stroke market. Taking into account the recent trend in performance, the company appears well positioned to retain its top position in the motor cycle market and also sustain the recent rate of growth.

Hero Honda is World Leader

  • For 2001- 02, volume up by 38 per cent ; net profit soars by 88 per cent; total turnover up by 42 per cent
  • Achieves a high 48 per cent motorcycle market share; and 33 per cent two-wheeler market share
  • Announces 350 per cent final dividend and 250 per cent celebration dividend (over and above special interim dividend of 250%)
  • Over the last five years, company's total turnover grows by a whopping 580 %; PAT by 919 %

Hero Honda plans sports spectacular

Hero Honda plans to organize a sports and glamour extravaganza in the country, on the lines of the Laureus World Sports Awards currently on in Monaco , in association with the Laureus world sports for Good Foundation, the organizer of the award.

Revving up to stay on top

Having achieved the status of the largest two-wheeler company in the world, Hero Honda now seeks to retain that slot.

The company has a large portfolio of brands, with the money-spinners being mainly Splendor (the world's largest selling bike) and Passion. However, the company claims it was the launch of the 150cc CBZ, which established Hero Honda as an aspirational brand. "The launch of CBZ got us into a different league altogether.

Celebrating its 25th year, Hero Honda released an innovative music video in the month of September. Titled "Hero Honda Dhak Dhak Go", and involving as many as eight brand ambassadors of Hero Honda, the music video has been receiving rave reviews.


Hero Honda is using both the strategy push as well as pull

A push-pull-system in business describes the movement of a product or information between two subjects. On markets the consumers usually "pulls" the goods or information they demand for their needs, while the offerers or suppliers "pushes" them toward the consumers.

Different push and pull strategies used by hero Honda:

Push strategy

Another meaning of the push strategy in marketing can be found in the communication between seller and buyer. In dependence of the used medium, the communication can be either interactive or non-interactive. For example, if the seller makes his promotion by television or radio, it's not possible for the buyer to interact with. On the other hand, if the communication is made by phone or internet, the buyer has possibilities to interact with the seller. In the first case information is just "pushed" toward the buyer, while in the second case it is possible for the buyer to demand the needed information according to his requirements.

Pull strategy

In a "pull" system the consumer requests the product and "pulls" it through the delivery channel. An example of this is the car manufacturing company Ford Australia. Ford Australia only produces cars when they have been ordered by the customers.

  • Applied to that portion of the supply chain where demand uncertainty is high
  • Production and distribution are demand driven
  • No inventory, response to specific orders
  • Point of sale (POS) data comes in handy when shared with supply chain partners
  • Decrease in lead time
  • Difficult to implement

Key Hero Honda brands continue to drive strong volumes across segments - CD Deluxe in entry segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the premium segment.

Hero Honda's strategy for aggressive top line growth through new product launches, brand building initiatives backed by innovative communication has resulted in market share gain across every segment. Indeed, Hero Honda's share in domestic motorcycles market has been growing upward of 50 per cent, despite the slowdown in the two-wheeler industry

"However, we will stay true to our winning strategy, and keep refreshing our product portfolio and continue to invest in brand building.


The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance, pricing and easy loan repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Thus, in India, we would see swanky four wheels jostling with our ever reliable and sturdy steed: the two wheeler. Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. In India there are 7 scooter manufacturers, 9 motorcycle manufacturers, 3 moped manufacturers.

Bajaj Auto, Hero Honda, TVS, etc are the leading manufacturers. HEROHONDA has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's largest selling motorcycle. Today Hero Honda has an assembly line of nine different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model.

Strategies followed by hero honda

Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing. Promotion: Below the Line Promotion: Below The Line is a common technique used for touches and feel products. Those consumer items where the customer will rely on immediate information than previously researched items. Below The Line techniques ensure recall of the brand while at the same time highlighting the features of the product.

'Honda' was already a household name in India. Hence, rather than putting major efforts into brand building, its marketing strategy emphasized on offering innovative products at competitive prices, novel promotional campaigns and developing an extensive distribution network...

So at last we can say that hero Honda is having a very good promotional strategy and this is the main reason of its success. It basically focuses on its customer satisfaction and from time to time it keep on showing its creativity and innovation It "However, we will stay true to our winning strategy, and keep refreshing our product portfolio and continue to invest in brand building.

"One of the key pillars of hero honda strategy has been to consistently keep introducing new, advanced products and maintaining a balanced product portfolio.

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