Hero Honda - the Seed of the Organisation
STRATEGIC MARKETING
CREATION OF AN ENTERPRISE: ENSURING THE RIGHT SEED
PROJECT REPORT
NEHA NATH [29]
PRASHANT BHARGAVA [33]
PREETHI JOSE [34]
ROHINI K [41] TABLE OF CONTENTS
ABSTRACT 3
INDUSTRY BACKGROUND 3
THE SEED OF SUCCESS 4
THE MUNJALS AND THE HERO GROUP 4
CREATION OF HERO HONDA MOTORS LTD. 6
GROWTH OF HHML 7
A SUCCESSFUL KICK-START 7
MARKET LEADERSHIP 7
CUSTOMER RELATIONSHIP MANAGEMENT 8
SUPPLIER RELATIONSHIP MANAGEMENT 9
DEALER RELATIONSHIP MANAGEMENT 9
LABOUR RELATIONSHIP MANAGEMENT 9
EMPLOYEE RELATIONSHIP MANAGEMENT 10
TECHNOLOGY-DRIVEN OPTIMIZATION OF DELIVERY ROUTES 10
BRAND IMAGE 10
SOCIAL RESPONSIBILITY 10
HHML¡¦S ACHIEVEMENTS 11
HHML¡¦S FINANCIAL PERFORMANCE 12
COMPETITION 12
THEN 12
BAJAJ AUTO 13
TVS-SUZUKI 13
ESCORTS-YAMAHA (EYML) 13
KINETIC HONDA LTD. 13
NOW 14
DOMESTIC MANUFACTURERS 14
OTHER CHALLENGERS 14
FUTURE CHALLENGES 15
GOING GLOBAL 15
COMPETITION IN THE MOTORCYCLE SEGMENT TO INTENSIFY 15
COMPETITION FROM HONDA 15
HERO HONDA¡¦S WEB PRESENCE 16
THE ROAD AHEAD 16
GLOBAL DESIGNS 16
THE CHINESE THREAT 17
IN THE IT PIPELINE 17
EXHIBITS 18 ABSTRACT
Hero Honda Motors Limited (HHML) is a partnership between the Hero Group and the Honda Motor Company of Japan. This partnership, forged in 1984, carved a lion¡¦s share of the market for itself and went on to become the world¡¦s largest manufacturer of motorcycles. Since its inception, the company has had a spectacular track record. It challenged Bajaj Auto Ltd., the traditional leader of the pack in two wheelers. The company created records of sorts not only in the growth by sales volumes, but also financially. In 2001, the Return on Average Capital Employed (ROCE) was at 65%, among the highest in the country. Hero Honda was among the few Indian Companies that enjoyed the distinction of generating a positive economic spread for an extended period of time. Between 1995 and 2001, the economic spread expanded from 16.5%
CREATION OF AN ENTERPRISE: ENSURING THE RIGHT SEED
PROJECT REPORT
NEHA NATH [29]
PRASHANT BHARGAVA [33]
PREETHI JOSE [34]
ROHINI K [41] TABLE OF CONTENTS
ABSTRACT 3
INDUSTRY BACKGROUND 3
THE SEED OF SUCCESS 4
THE MUNJALS AND THE HERO GROUP 4
CREATION OF HERO HONDA MOTORS LTD. 6
GROWTH OF HHML 7
A SUCCESSFUL KICK-START 7
MARKET LEADERSHIP 7
CUSTOMER RELATIONSHIP MANAGEMENT 8
SUPPLIER RELATIONSHIP MANAGEMENT 9
DEALER RELATIONSHIP MANAGEMENT 9
LABOUR RELATIONSHIP MANAGEMENT 9
EMPLOYEE RELATIONSHIP MANAGEMENT 10
TECHNOLOGY-DRIVEN OPTIMIZATION OF DELIVERY ROUTES 10
BRAND IMAGE 10
SOCIAL RESPONSIBILITY 10
HHML¡¦S ACHIEVEMENTS 11
HHML¡¦S FINANCIAL PERFORMANCE 12
COMPETITION 12
THEN 12
BAJAJ AUTO 13
TVS-SUZUKI 13
ESCORTS-YAMAHA (EYML) 13
KINETIC HONDA LTD. 13
NOW 14
DOMESTIC MANUFACTURERS 14
OTHER CHALLENGERS 14
FUTURE CHALLENGES 15
GOING GLOBAL 15
COMPETITION IN THE MOTORCYCLE SEGMENT TO INTENSIFY 15
COMPETITION FROM HONDA 15
HERO HONDA¡¦S WEB PRESENCE 16
THE ROAD AHEAD 16
GLOBAL DESIGNS 16
THE CHINESE THREAT 17
IN THE IT PIPELINE 17
EXHIBITS 18 ABSTRACT
Hero Honda Motors Limited (HHML) is a partnership between the Hero Group and the Honda Motor Company of Japan. This partnership, forged in 1984, carved a lion¡¦s share of the market for itself and went on to become the world¡¦s largest manufacturer of motorcycles. Since its inception, the company has had a spectacular track record. It challenged Bajaj Auto Ltd., the traditional leader of the pack in two wheelers. The company created records of sorts not only in the growth by sales volumes, but also financially. In 2001, the Return on Average Capital Employed (ROCE) was at 65%, among the highest in the country. Hero Honda was among the few Indian Companies that enjoyed the distinction of generating a positive economic spread for an extended period of time. Between 1995 and 2001, the economic spread expanded from 16.5%