Hero MotoCorp, the leader in the Indian two-wheeler market, is facing challenges to its dominance due to its separation from Honda and increased competition. The brand’s popular bike, the Splendor, has seen a decline in sales as customers demand more powerful and stylish options. To address this, Hero MotoCorp is investing in research and development, upgrading its products, and exploring opportunities in overseas markets. The company recognizes the need to redefine its identity beyond commuter bikes to maintain its market share against rivals like Honda and Bajaj Auto.
Key Takeaways:
- Hero MotoCorp is investing in research and development to upgrade its products and meet customer demands for more powerful and stylish options.
- The company is exploring opportunities in overseas markets to expand its presence and mitigate the challenges posed by increased competition.
- Hero MotoCorp aims to redefine its identity beyond commuter bikes to maintain its market share against rivals like Honda and Bajaj Auto.
Hero MotoCorp’s Market Positioning
Hero MotoCorp, the largest two-wheeler manufacturer in the world, has successfully established a strong market position through strategic market positioning and competitive analysis. With a 46% market share in the two-wheeler category in India, the company has solidified its presence in the highly competitive automotive market.
Hero MotoCorp’s market positioning is built on a deep understanding of its competitors, including Honda and Bajaj Auto. By conducting a comprehensive competitive analysis, Hero MotoCorp identifies gaps and opportunities in the market, enabling the company to differentiate its products effectively.
The company’s market positioning strategy revolves around highlighting its unique selling points and leveraging them to attract and retain customers. Hero MotoCorp focuses on offering competitive prices for mass markets while emphasizing value-added features that enhance the overall customer experience.
One of Hero MotoCorp’s key strategies is its product development and innovation. The company aims to refocus on the 100cc and 110cc segments, catering to the needs of a wide range of consumers. Additionally, Hero MotoCorp has plans to introduce the 450cc Hero Xpulse, which will further expand its product portfolio and appeal to performance-oriented customers.
Another important aspect of Hero MotoCorp’s market positioning is its commitment to sustainability and electric mobility. The company is actively expanding its electric vehicle strategy and aims to operate in 100 more cities by the end of the year. This focus on sustainable mobility aligns with the evolving needs and preferences of consumers, further enhancing Hero MotoCorp’s market position.
Despite facing intense competition, Hero MotoCorp has maintained its market position through its continuous efforts to innovate and differentiate itself. The company’s strong brand identity, emotional connections with its audience, and effective advertising campaigns have played a crucial role in creating a competitive edge in the market.
Overall, Hero MotoCorp’s market positioning is a result of thorough competitive analysis, product development, and a focus on sustainability. By understanding its competitors, leveraging unique selling points, and staying ahead of market trends, Hero MotoCorp has solidified its position as a leader in the global two-wheeler market.
Hero MotoCorp’s Branding Strategy
Hero MotoCorp’s branding strategy has been instrumental in its remarkable success in the market. The company has strategically positioned itself as a trusted and reliable brand, focusing on delivering high-quality products that cater to the needs of its customers. Hero MotoCorp’s consistent branding efforts have resulted in a strong brand perception and widespread recognition.
One key aspect of Hero MotoCorp’s branding strategy is its extensive sponsorship of major sporting events. The company has been the title sponsor for several prominent domestic football leagues in India, including the Hero Indian Super League, Hero i-League, Hero i-League for women, Hero Super Cup, and the Hero Intercontinental Cup. By associating its brand with these popular tournaments, Hero MotoCorp enhances its visibility and strengthens its connection with sports enthusiasts.
In addition to football, Hero MotoCorp has also made significant contributions to other sports. The company sponsored the Men’s Hockey World Cup in New Delhi in 2010 and the Men’s Hockey World Cup in Odisha in 2018, showcasing its commitment to promoting and supporting diverse sporting events. Hero MotoCorp was also the national supporter of the FIFA Under-17 World Cup 2017 held in India, further enhancing its brand reputation.
Hero MotoCorp’s branding strategy extends beyond sports. The company was previously a global partner of the International Cricket Council (ICC) and is currently the title sponsor of the Hero Caribbean Premier League cricket tournament. By aligning with these popular cricket events, Hero MotoCorp taps into the massive fanbase of the sport and leverages its brand recognition.
Furthermore, Hero MotoCorp has established strong associations with various golf tours such as The Asian Tour, The European Tour, and the US PGA. The company’s innovative one-hole knockout contest, The Hero Challenge, has gained immense popularity among players, celebrities, and fans in the golf community. These initiatives not only promote the brand but also create engaging experiences for the target audience.
In the motorsports realm, Hero MotoCorp’s team rally, Hero MotoSports Team Rally, has participated in the challenging Dakar Rally. The team has achieved notable positions in the rally, with riders like Oriol Mena, Joaquim Rodrigues, and CS Santosh showcasing the brand’s competitive spirit and determination.
Hero MotoCorp’s branding strategy encompasses a wide range of activities, including sponsorships, associations with sporting events, and participation in motorsports. Through these initiatives, the company fortifies its brand image, builds customer trust, and maintains its position as a market leader.
| Statistics | Year |
|---|---|
| Market Share Growth in the commuter segment | 1984-2000 |
| Sales figures and revenue growth rates | 2001-2010 |
| Percentage increase in brand recognition and customer loyalty metrics | 2011-2019 |
| Market expansion in international regions | Post 2012 |
| Sales data and market response indicators | Post-2020 |
Hero MotoCorp’s Product Development and Innovation
Hero MotoCorp understands the significance of product development and innovation in maintaining its dominant position in the two-wheeler segment. With a market share of around 34% in India, Hero MotoCorp is the largest two-wheeler manufacturer in the world. The company’s commitment to creating technologically advanced and customer-centric products has been key to its success.
Investing heavily in research and development, Hero MotoCorp continually improves its product lineup by introducing new features and designs. This strategy allows the brand to meet the evolving needs and preferences of its target audience, ensuring they have access to cutting-edge motorcycles.
By focusing on product development and innovation, Hero MotoCorp stays ahead of its competitors, including Bajaj Auto, TVS Motors, Honda, and Yamaha, who challenge its market position and share in the Indian two-wheeler market.
Hero MotoCorp’s Production Capacity
Hero MotoCorp’s commitment to delivering high-quality products is supported by its expansive production capacity. As of 2021, the company’s annual production capacity stands at 8.1 million vehicles, produced across eight manufacturing facilities.
| Year | Production Output (units) |
|---|---|
| 2018 | 7,587,130 |
| 2021 | 8,100,000 |
Financial Performance
Hero MotoCorp’s commitment to product development and innovation has also translated into financial success. In 2022, the company’s revenue reached approximately Rs 31,776 crore, representing a growth from the previous year. The profit after tax for the same year was around Rs 3,141 crore, showcasing a significant increase compared to the previous year’s profit.
| Fiscal Year | Revenue (INR crore) | Profit After Tax (INR crore) |
|---|---|---|
| 2022 | 31,776 | 3,141 |
| 2023 | 33,805.65 | 2,910.58 |
Hero MotoCorp’s commitment to product development and innovation is reflected in its consistent growth and financial performance.
Future Ambitions
As a market leader, Hero MotoCorp aims to continue driving innovation and delivering superior products to its customers. The company has set ambitious goals, aiming to achieve revenues of ₹64,000 crore and volumes of one million two-wheelers by 2016–17.
Hero MotoCorp’s Marketing Channels and Communication
Hero MotoCorp employs an extensive range of marketing channels and utilizes effective communication strategies to reach and engage its target audience. By adopting a multi-channel approach, the company ensures maximum visibility and customer engagement.
Traditional marketing channels, such as television, newspapers, and radio, play a crucial role in Hero MotoCorp’s marketing mix. The company leverages the power of television advertising to showcase its product portfolio, highlight key features and benefits, and create a strong brand presence in the market. This approach allows Hero MotoCorp to target a wide audience, including potential buyers in urban, semi-urban, and rural areas.
In addition to traditional media, Hero MotoCorp embraces digital platforms to connect with its customers in the digital age. The brand maintains an active presence on social media platforms such as Facebook, Instagram, and Twitter, where it shares updates, engages with customers, and runs targeted advertising campaigns. By leveraging the digital landscape, Hero MotoCorp effectively reaches out to tech-savvy consumers and captures their attention in a cluttered market.
Hero MotoCorp also recognizes the power of influencer partnerships in driving brand awareness and preference. Collaborating with popular social media influencers and celebrities, Hero MotoCorp taps into their extensive follower base to enhance brand visibility and credibility. These partnerships not only help in expanding the brand’s reach but also create a sense of aspiration and desirability among the target audience.
When it comes to communication, Hero MotoCorp places great emphasis on delivering impactful messages that resonate with its customers. The brand’s communication strategy focuses on highlighting the unique selling propositions of its products, showcasing the brand’s commitment to quality and reliability, and building an emotional connection with consumers.
Law & Kenneth, a renowned communications agency, played a key role in devising the communication strategy for Hero MotoCorp’s new brand identity. The aim was to create a sense of ownership among stakeholders while reducing friction during the transition from Hero Honda to Hero MotoCorp. The agency’s expertise helped Hero MotoCorp streamline its go-to-market efforts and establish a strong brand presence.
Hero MotoCorp’s Marketing Channels:
| Traditional Channels | Digital Channels | Influencer Partnerships |
|---|---|---|
| Television | Social Media | Social Media Influencers |
| Newspapers | Online Advertising | Celebrity Collaborations |
| Radio | Email Marketing |
Hero MotoCorp’s Customer Engagement and Loyalty Programs
Hero MotoCorp recognizes the significance of customer engagement and loyalty in building a strong brand and driving long-term business growth. The company prides itself on delivering exceptional customer experiences at every touchpoint, from pre-purchase interactions to after-sales support. To foster customer engagement, Hero MotoCorp offers a range of initiatives and programs that create meaningful connections with customers and promote brand loyalty.
One of the key programs implemented by Hero MotoCorp is its comprehensive customer feedback system. The company actively seeks input from customers to understand their preferences, expectations, and areas for improvement. By listening to customer feedback, Hero MotoCorp can continuously enhance its products and services, ensuring that they align with customer needs and preferences.
Another important aspect of Hero MotoCorp’s customer engagement strategy is its focus on providing personalized experiences. The company understands that each customer is unique, with distinct preferences and requirements. Therefore, Hero MotoCorp tailors its offerings to cater to these individual preferences, delivering personalized solutions that meet the specific needs of its diverse customer base.
Hero MotoCorp also organizes various customer-centric events and activities to encourage engagement and build brand loyalty. These events can include test rides, where potential customers can experience the performance and features of Hero MotoCorp’s motorcycles firsthand. Additionally, the company hosts service camps to provide existing customers with convenient access to maintenance and support services, further strengthening the bond between the brand and its customers.
Moreover, Hero MotoCorp places a strong emphasis on creating loyalty programs that reward and incentivize its customers. Through these programs, loyal customers can enjoy exclusive benefits, discounts, and rewards, further enhancing their overall ownership experience. Hero MotoCorp’s loyalty programs aim to cultivate long-term relationships with customers and encourage repeat purchases, boosting customer satisfaction and brand loyalty.
Customer Engagement and Loyalty Programs at a Glance
| Programs | Benefits |
|---|---|
| Customer Feedback System | Insights for continuous improvement |
| Personalization | Tailored solutions for individual needs |
| Test Rides | Firsthand experience of Hero MotoCorp’s motorcycles |
| Service Camps | Convenient access to maintenance and support services |
| Loyalty Programs | Exclusive benefits, discounts, and rewards |
By prioritizing customer engagement and implementing effective loyalty programs, Hero MotoCorp continuously strengthens its relationship with customers while fostering brand loyalty and advocacy. These efforts contribute to the company’s market leadership and help maintain its position as a manufacturer of choice for motorcycle enthusiasts worldwide.
Hero MotoCorp’s International Expansion Strategy
Recognizing the immense potential of international markets, Hero MotoCorp has implemented a robust strategy to expand its presence beyond India. This strategic move allows the brand to tap into new customer segments, diversify its revenue streams, and reduce dependence on the Indian market.
Despite the challenges posed by the Covid-19 pandemic, Hero MotoCorp experienced a remarkable 7.5% increase in exports in FY21, with 191,609 units shipped globally. Hero MotoCorp’s global footprint has expanded to 41 markets, demonstrating the brand’s commitment to establishing a strong presence in key regions across the globe.
Of particular significance is Hero MotoCorp’s successful market entry into Mexico, a key motorcycle and scooter market. This move allows the brand to capitalize on the growing demand for premium motorcycles and scooters in the country.
In addition to Mexico, Hero MotoCorp aims to focus on Bangladesh, Nepal, and Latin America, where there is a strong demand for premium motorcycles and scooters. The brand plans to revamp its product portfolio and introduce innovative offerings tailored to the specific needs and preferences of these markets.
To further strengthen its position in Africa, Hero MotoCorp plans a significant expansion in key markets such as Nigeria, Kenya, and Uganda. The brand will revamp its product line-ups, expand its network, and undertake promotional activities to capture a larger market share.
| Production Facilities | Capacity |
|---|---|
| Bangladesh | 150,000 units per year |
| Colombia | 80,000 units per year |
Currently, Hero MotoCorp operates in over 47 countries worldwide, showcasing a widespread international presence. The recent establishment of a manufacturing factory in Brazil represents a significant milestone in the brand’s global expansion strategy, further solidifying its commitment to international markets.
Looking ahead, Hero MotoCorp intends to make significant advancements in the electric vehicle (EV) market. The brand plans to launch new products in the mid- and affordable segments, capitalizing on the growing demand for eco-friendly transportation solutions.
Specifically, the upcoming introduction of the Xoom 125cc and Xoom 160cc models in the first half of the fiscal year will enhance Hero MotoCorp’s scooter portfolio. The brand aims to compete in the premium scooter segment, taking on formidable competitors such as Aprilia SXR 160 and Yamaha Aerox 155 with its new Xoom 160 model.
In summary, Hero MotoCorp’s international expansion strategy underscores its determination to establish a strong global market presence. By focusing on key regions, revamping product portfolios, and undertaking network expansions and promotional activities, Hero MotoCorp is poised to capture new opportunities, diversify its revenue streams, and reinforce its position as a global leader in the motorcycle and scooter industry.
Hero MotoCorp’s Sustainability and Corporate Social Responsibility
Hero MotoCorp, a leading player in the domestic motorcycle market in India with over 50% share, is committed to sustainability and corporate social responsibility (CSR). The company’s CSR strategy focuses on fostering a positive impact on the environment, promoting road safety awareness, and contributing to the well-being of communities.
One area where Hero MotoCorp demonstrates its dedication is women empowerment. The company recognizes the importance of gender equality and socioeconomic development within communities. Through various initiatives, Hero MotoCorp creates employment opportunities for women, thus contributing to gender equality within its workforce and aligning with its vision of a more equitable planet.
In many backward areas, women face challenges such as discrimination, lack of role models, and limited access to education and skills development. Hero MotoCorp addresses these challenges by offering skill development programs and employment opportunities for women. By doing so, the company aims to break the cycle of poverty and empower women to become agents of change in their communities.
Women’s economic self-sufficiency plays a crucial role in the economic growth of their communities. Hero MotoCorp’s commitment to women empowerment and socioeconomic development aligns with the national agenda of fostering economic development and inclusivity.
Furthermore, Hero MotoCorp actively engages in environmental sustainability initiatives. The company’s ‘Hero Green Drive’ project, which commenced in FY 2014-15 and continued through January 2022, resulted in the planting of over 2.38 million tree saplings. This commitment to reforestation showcases Hero MotoCorp’s dedication to reducing its carbon footprint and promoting a greener future.
Hero MotoCorp also extends its support to healthcare through its Mobile Medical Vans, benefiting over 43,000 beneficiaries in various locations. Additionally, the company focuses on promoting education in rural areas by supporting over 3000 students with remedial education in government schools.
Hero MotoCorp’s commitment to sustainability initiatives has not only led to a 22% reduction in carbon emissions but has also resulted in a 30% increase in employee engagement levels. The company’s partnerships with local communities have contributed to a 15% rise in access to clean drinking water in those areas.
Market surveys indicate a 12% growth in brand loyalty towards Hero MotoCorp, attributing it to the company’s sustainability efforts. These efforts have also garnered increased investor interest, with reports showing a 25% rise in investment following Hero MotoCorp’s commitment to sustainable practices.
Furthermore, Hero MotoCorp’s waste management program has resulted in a remarkable 40% decrease in overall waste generated within its manufacturing facilities.
Hero MotoCorp’s Sustainability and CSR Impact
| Initiative | Impact |
|---|---|
| ‘Hero Green Drive’ project | Over 2.38 million tree saplings planted |
| Mobile Medical Vans | Benefiting over 43,000 beneficiaries |
| CSR initiative for education | Supporting over 3000 students in rural areas |
| Skill development programs | Over 5800 technicians trained on Fuel Injection technology |
| Project Jeevika | Skilling over 1000 marginalized youth |
| Carbon emissions reduction | 22% decrease compared to the previous year |
| Employee engagement levels | 30% increase |
| Access to clean drinking water | 15% rise in partnered communities |
| Brand loyalty | 12% growth |
| Investment | 25% increase following commitment to sustainable practices |
| Waste management program | 40% decrease in overall waste generated |
Conclusion
In conclusion, Hero MotoCorp’s marketing strategy has played a pivotal role in establishing its dominance in the Indian two-wheeler market and expanding globally. With a market share of approximately 46% in India, Hero MotoCorp has successfully positioned itself as a leader in the industry.
During a recent marketing event, Hero MotoCorp unveiled two new models, the “Impulse,” a first-of-its-kind 150cc on-road-off-road motorcycle, and the “Maestro,” a 110cc scooter. Ranbir Kapoor and Irfan Pathan, along with notable performances by international artist Akon and Indian star Anushka Sharma, added glamour to the event.
Hero MotoCorp’s branding strategy, which includes its new logo and brand identity developed by Wolff Olins, reflects the company’s vision of embracing mobility and technology, while also capturing the youthful energy and ‘can do’ spirit of India. Pawan Munjal, the company’s Managing Director and CEO, emphasized the importance of continuity and change in the brand with the new logo.
Originally established as a joint venture between Hero Group and Honda Motor Company, Hero MotoCorp benefited from Honda’s advanced technology, resulting in state-of-the-art engines and engineering practices. Extensive distribution networks, competitive pricing, effective advertising campaigns, and customer engagement initiatives also contributed to Hero MotoCorp’s success.
Looking ahead, Hero MotoCorp aims to maintain its leadership position in India while expanding its global footprint. With a strong marketing strategy as its foundation, Hero MotoCorp is well-positioned to face challenges, capitalize on opportunities, and continue its growth and success in the dynamic motorcycle market.
