A Study of Advertising and Sales Promot
A Study of Advertising and Sales Promot
A Study of Advertising and Sales Promot
ON
BY
ARBAZ KHAN ROLL NO: 16MBA002
Submitted to:
DEPARTMENT OF BUSINESS ADMINITRATION
Signature of student
NAME:-Arbaz Khan
Roll no.:- 16MBA002
Government Collage (Auto), Angul
ACKNOWLEDGEMENT
I take this opportunity to thank the entire senior executives’ team and every
associate of this organization, for helping me directly and indirectly during this
period of project preparation.
fulfillment of the requirement for the degree of Govt. College (Auto), Angul, I-
for the award of any other degree, diploma, fellowship or any other similar title of
prizes.
Signature
Place: Angul Name: ARBAZ KHAN
Roll no.:-16MBA002
Date:
Contents
CHAPTER-1
CHAPTER-2
COMPANY PROFILE
CHAPTER-3
PROMOTION
CHAPTER-4
CHAPTER-5
CHAPTER-6
BIBILIOGRAPHY
CHAPTER-1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The new brand identity and logo, Hero MotoCorp, was developed by
the London firm Wolff Olin’s. The logo was revealed on 9 August
2011 in London, the day before the third test match between
England and India.
Hero MotoCorp can now export to Latin America, Africa and West
Asia. Hero is free to use any vendors for its components instead of
just Honda-approved vendors.
Company 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 a
market share of 57% in the Indian market. Hero Honda sells more
two wheelers than the second, third and fourth placed two-wheeler
companies put together. Hero Honda's bike hero splendor pro sells
more than one million units per year. On 1st June 2012, Hero
MotoCorp reported its highest ever monthly sales at 5, 56,644 units
in May, registering a growth of 11.28%.
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. In 2001, the company achieved the
coveted position of being the largest two-wheeler manufacturing company in India
and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a
calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.
Hero MotoCorp two wheelers are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which
are located in the state of Haryana in northern India. The third and the latest
manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.
Its plants use world class equipment and processes and have become a benchmark
in leanness and productivity. Hero MotoCorp, in its endeavor to remain a pioneer
in technology, will continue to innovate and develop cutting edge products and
processes. Hero MotoCorp offers wide range of two wheeler products that include
motorcycles and scooters, and has set the industry standards across all the market
segments.
The Company's growth in the two wheeler market in India is the result of an
intrinsic ability to increase reach in new geographies and growth markets. Hero
MotoCorp's extensive sales and service network now spans over to 5000 customer
touch points. These comprise a mix of authorized dealerships, service & spare
parts outlets, and dealer-appointed outlets across the country.
The new Hero is rising and is poised to shine on the global arena. Company's new
identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus
on mobility and technology and creating global footprint. Building and promoting
new brand identity will be central to all its initiatives, utilizing every opportunity
and leveraging its strong presence across sports, entertainment and ground- level
activation.
Total unit sales of 54, 02,444 two-wheelers, growth of 17.44 per cent
Total net operating income of Rs. 19401.15 Corers, growth of 22.32 per cent
Net profit after tax at Rs. 1927.90 Corers
Total dividend of 5250% or Rs. 105 per share including Interim Dividend of Rs. 70
per share on face value of each share of Rs. 2 each
EBIDTA margin for the year 13.49 per cent
EPS of Rs. 96.54
Hero MotoCorp Ltd formerly Hero Honda is an Indian motorcycle and scooter
manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint
venture between Hero Cycles of India and Honda of Japan. The company is the
largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected
companies list has Hero Honda Motors ranked at 108.
In 2010, When Honda decided to move out of the joint venture, Hero Group
bought the shares held by Honda. Subsequently, in August 2011 the company was
renamed Hero MotoCorp with a new corporate identity. On 4th June 2012,Hero
MotoCorp approved a proposal to merge the investment arm of its parent-Hero
Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of
its split from Honda Motor.
CHAPTER-2
COMPANY PROFILE
Corporate Office
“Hero” is the brand name used by the Munjal brothers for their flagship company
Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor
Company was established in 1984 as the Hero Honda Motors Limited at
Dharuhera India. Munjal family and Honda group both own 26% stake in the
Company. In 2010, it was reported that Honda planned to sell its stake in the
venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular in India
for their fuel economy and low cost. A popular advertising campaign based on the
slogan 'Fill it - Shut it - Forget it' that emphasized the motorcycle's fuel efficiency
helped the company grow at a double-digit pace since inception. The technology
in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the
Japanese counterpart Honda
The company has a stated aim of achieving revenues of $10 billion and volumes of
10 million two-wheelers by 2016-17. This in conjunction with new countries
where they can now market their two-wheelers following the disengagement
from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from
international markets, and they expected to launch sales in Nigeria by end-2011
or early-2012. In addition, to cope with the new demand over the coming half
decade, the company was going to build their fourth factory in South India and
their fifth factory in Western India. There is no confirmation where the factories
would be built.
HERO Motor Co., Ltd. operates under the basic principles of "Respect for the
Individual" and "The Three Joys" - commonly expressed as The Joy of Buying, The
Joy of Selling and The Joy of Creating. "Respect for the Individual" reflects our
desire to respect the unique character and ability of each individual person,
trusting each other as equal partners in order to do our best in every situation.
Based on this, "The Three Joys" expresses our belief and desire that each person
working in, or coming into contact with our company, directly or through or
products, should share a sense of joy through that experience. In line with these
basic principles, since its establishment in 1948, Honda has remained on the
leading edge by creating new value and providing products of the highest quality
at a reasonable price, for worldwide customer satisfaction. In addition, the
Company has conducted its activities with a commitment to protecting the
environment and enhancing safety in a mobile society.
The Company has grown to become the world's largest motorcycle manufacturer
and one of the leading automakers. With a global network of 474* subsidiaries
and affiliates accounted for under the equity method, Honda develops,
manufactures and markets a wide variety of products, ranging from small general-
purpose engines and scooters to specialty sports cars, to earn the Company an
outstanding reputation from customers worldwide
Public
Type
(TYO: 7267) & (NYSE: HMC)
1. Automotive
Industry 2. Aviation
1. Automobiles
2. Motorcycles
3. Scooters
4. ATVs
5. Electrical Generators
6. Water pumps
Products 7. Lawn and Garden Equipments
8. Tillers
9. Outboard motors
10. Robotics
11. Jets
12. Jet Engines
The story of Hero Honda began with a simple vision - the vision of a mobile and
an empowered India, powered by its bikes. Hero MotoCorp Ltd., 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.
Mission
Strategy
Hero Moto Corp's key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
operational efficiency, aggressively expand its reach to customers, continue to
invest in brand building activities and ensure customer and shareholder delight.
Chapter -3
Conceptual Clarification of
Promotion
CONCEPT OF ADVERTISING AND SALES
PROMOTION
Adverting is only one element of the promotion mix, but it often considered
prominent in the overall marketing mix design. Its high visibility and
pervasiveness made it as an important social and encomia topic in Indian
society.
1. Advertising
2. Personal Selling
4. Publicity
personal means and is not directly paid by the organization and the
organization is not the source.
The seller in primitive times relied upon his loud voice to attract
attention and inform consumers of the availability of his services. If there
were many competitors, he relied upon his own personal magnetism to
attract attention to his merchandise. Often it became necessary for him to
resort to persuasion to pinpoint the advantages of his products. Thus, the
seller was doing the complete promotion job himself.
As the markets grew larger and the number of customers increased, the
importance of attracting them also grew. Increasing reliance was placed on
advertising methods of informing about the availability of the products.
These advertising methods were more economical in reaching large numbers
of consumers. While these advertising methods were useful for informing
and reminding and reminding, they could not do the whole promotional job.
They were used only to reach each consumer personally. The merchant still
used personal persuasion once the customers were attracted to his store.
ADVERTISEMENT &
SALES PROMOTION OF
HERO MOTORS &
PRODUCTS
As consumers have developed a resistance to advertising, the use of sales
promotion has increased. There is scope for a variety of activities with sales
promotion and companies seek to create a promotion that singles it out from
competitors. Advertising is partly restricted by the media that can be used.
In trade sales promotion, objectives might include encouraging the trade to stock a
new line or exhorting them to put more effort into selling a company’s brands to
the final customer. Naturally, the trade will only be interested in doing any of these
if it is profitable. Because of this, effective trade sales promotion needs to be
supported by imaginative marketing, including sales promotion efforts to the
trade’s customer. More importantly, the trade will need to be convinced that there
is a market for the product.
Promotion aimed at motivating the company’s own sales force might include these
objectives: stimulating greater effort to support a new product launch, encouraging
the opening of new accounts and encouraging more visits per day. We see that
achieving a given objective may require targeting sales promotion at various
parties. Where this is the case, it needs to be effectively co-ordinated and
controlled along with other elements of the marketing and promotional mix. The
next step is to select the most appropriate and cost-effective sales promotional
tools. There is little empirical evidence to suggest which tools work best in which
situation and why. As an indication of the types of sales promotion tools available
for each target audience, we outline the major ones used for consumers, trade and
the field sales force.
Consumer sales promotion
Coupons The consumer must be in possession of a coupon or voucher of a
particular value which can then be ‘redeemed’ at a local store to obtain the product
or products named on the voucher at the usual price, less the value of the voucher.
There is usually a deadline, and the offer often applies to a particular size in the
range of products, which usually means that the consumer, in order to take
advantage of the offer, must purchase the product within a shorter space of time
than normal. The effect of this is to increase the rate of stock-turn for both the
retailer and the manufacturer. A problem is that most redemptions are made by
people who would normally have bought the product, so the true value of the
scheme is difficult to ascertain, although in oligopolistic situations some might
switch brands as a result of the offer.
However, where the voucher constitutes an introductory offer on a relatively new
product, the ‘bargain’ element sometimes persuades consumers to switch brands.
Hero cycle:-
Type Private
company
Industry Bicycles
Founded 1956
Splendor Model
1. 1994 - Splendor
2. 2004 - Splendor+
3. 2005 - Super Splendor
4. 2008 - Splendor NXG
5. 2011 - Splendor Pro 2012
Eight different color shade designs are now available for Hero
MotoCorp Splendor PRO Bike. These color shades are named as
Black Monotone, Black with Purple Stripe, Candy Blazing Red,
Cloud Silver, Excellent Blue, Heavy Grey.
The stylish Hero Passion Pro is very powerful and fuel efficient bike in
its segment. Both the variants of the Hero Passion Pro are equipped
with 97.2 cc engine capacity and generates amazing power and
torque.
The new Hero Passion Pro offers a mileage of 69 kmpl and Hero
Passion Pro plus offers a mileage of 70 kmpl.
Hero Passion Pro Pick up
The new and classy Hero Passion Pro comes in two models- Pro and
Plus. Both the variants come in 97.2 cc engine displacement and
sports air cooled, single cylinder, 4 stroke, OHC power train. The new
Hero Passion Pro Pro generates a top power of 7.8 PS at 7500 rpm
and develops a peak torque value of 8.04 NM at 4,500 rpm. The
other variant Hero Passion Pro Plus produces a maximum power of
7.5 PS at 8000 rpm and a max torque of 7.95 Nm at 5000 rpm. Both
the variants with this amazing power and torque offer zipper
acceleration and pick up.
Colors of Hero Passion Pro
The new and elegant Hero Passion Pro is available in many exciting
colors. The colors available in Hero Passion Pro Plus are Black & Sport
Red, Vibrant Blue, Force Silver, Sports Red, Black & Frost Blue and
Palace Maroon. The colors available in Hero Passion Pro are Vibrant
Blue, Black with sports Red, Leaf Green Metallic, Black with Heavy
Grey, Black with Frost Blue and Force Silver. Body Color of the Hero
Passion Pro attracts everybody and seems like mixture of two color.
Hero CBZ X treme:-
Hero Maestro:-
Hero Pleasure:-
This is the first time I am doing a review and road test of a Scooter,
and I hope to do more soon. Hero Pleasure is the first scooter
launched by Hero in competition to the Scotty Pep and Honda Activa.
The price of this two wheeler is around Rs.36.5k (ex-showroom) in
Delhi. The high pricing is because of the 100cc engine and the bike
positions itself in the premium scooter segment.
Hero Honda Pleasure Specifications:
Engine: 102cc, 4 Stroke, Air Cooled OHC
Maximum Power: 7.10ps@7000rpm
Maximum Torque: 7.85nm@5000rpm
Weight: 104.00 kg
Ground Clearance: 125.00 mm
Fuel Tank: 10.00 liters
Wheelbase: 1240.00 mm
Brakes: 130mm Drum brakes for both
Hero Impulse:-
Impulse
Publisher DC Comics
Legion of
Super-
First
Heroes vol. 4
appearance
#12 (October
1990)
Kent
Shakespeare
Characters
Bart Allen
Iris West
Flash
See also
Kid Flash
Impulse
Schedule Monthly
Ongoing
Format
series
Genre Superhero
Number of
90, 2 annual
issues
Main
Bart Allen
character(s)
Hero Glamour:-
Displacement: 124.7cc
Engine: 124.7cc, OHC
Maximum Power: 9 Bhp @ 7000 rpm
Maximum Torque: 10.35 Nm @ 4000 rpm
Gears: 4 Speed
Clutch: Multi Plate Wet
Bore: 52.4
Stroke: 57.8
Cylinder Configuration: NA
Engine Block Material: NA
Chassis Type: Tubular Double Cradle Type
Cooling Type: Air Cooling
Carburetor: NA
VEHICLE SUMMARY
Name: Glamour
Type: Commuter
Top Speed: 94kph
Fuel Consumption:
62.00
City
Fuel Consumption:
80.00
Highway
ENGINE SPECIFICATIONS
Displacement: 124.7cc
Engine: 124.7cc, OHC
Maximum Power: 9 Bhp @ 7000 rpm
Maximum Torque: 10.35 Nm @ 4000 rpm
Gears: 4 Speed
Clutch: Multi Plate Wet
Bore: 52.4
Stroke: 57.8
Cylinder Configuration: NA
Engine Block Material: NA
Chassis Type: Tubular Double Cradle Type
Cooling Type: Air Cooling
Carburetor: NA
Chapter-5
DATA ANALYSIS
Analysis:-
Column1
No Yes
30%
Other No
0%
Yes
70%
Interpretation
Column1
Interpretation
After survey student found that most of the customers having Hero
bikes.
3. Does your purchasing decision affected by the brand name of the bike?
Yes 80
No 20
20%
Yes
0%
No
80%
Interpretation
Expensive 40
Cheap 60
60%
Expensive
0%
Cheap
40%
Interpretation
Official 25
Household 55
Business 10
Any other 10
55
25
10 10
Interpretation
Customers mostly preferred to use Hero bikes for their family itself.
6. Have you faced any problem regarding power driving of the
vehicle?
Yes 06
No 94
94% Yes
0%
6% No
Interpretation
Satisfactory 88
Unsatisfactory 12
88
12
SATISFACTORY
UNSATISFACTORY
Interpretation
Yes 80
No 20
20%
Yes
0%
No
80%
Interpretation
TV : 30
Internet : 10
Newspaper : 12
Banners & Hoardings : 10
Friends/Relatives : 15
Road show :8
Magazine :5
Dealer : 10
11% TV
13%
17% Internet
11% Newspaper
32% Banner&Hoardings
Friends/Relatives
9%
Roadshow
33%
Magazine
6%
CHAPTER-6
CONCLUSION
&
SUGGESTIONS
Conclusion
BOOK REFERENCE
Referred Books:-
WEBSITES:-
WWW. Heromotorcorp.com
WWW.Timesdrive.com
Overdrive
Wheelocity
Autobahn
ANNEXURE
ANNEXURE
Questionnaire
Name: ……………….. Mobile: ……………….
Address: ………………
Occupation: - Student -Govt. Employees -Own Business
1. Teacher - Shop Owner -Other
1. Do you have vehicle?
Yes No
2. Which bike you have own?
Yes No
Expensive Cheap
6. Have you faced any problem regarding power driving of the vehicle?
Yes No
Yes No