The Hero Moto Corp : Hastur 620 Essay

Starting from a company of less than 75 workers and owning less than 20,000 SCU for production, research, quality assurance and conduct warranty work Off The Chain Bikes has doubled the plant capacity and hearing doubling the workforce within two short years. The company is successful by targeting and capturing lucrative market shares by heavily investing in the desired technical specs and design styles of one of the most influential Racing bikes. Our keen ability to thoroughly research market demands, predicting competitive strategies between the four market majority shareholders by reviewing and interpreting the marketing reports and our aggressive design and development plans have significantly increased our market share and increase shareholder value. Our core competencies and strategic goals will be realized by carefully following our established plans and aggressively price our bikes to increase total market share.

The motorcycle industry is a consolidated industry. The U.S. and international heavyweight motorcycle markets are highly competitive. The major players, such as Yamaha, Suzuki, and Honda, generally have financial and marketing resources that are substantially greater than the non-major players. Competitions in the heavyweight

In this case, there are few symptoms clearly stated that something has gone wrong for this company. These symptoms can be classified into two main areas; one is the negative feedback from the customers and another one if from its own employee’s job dissatisfaction.

The industry players are focusing on technical innovations like improvements in fuel efficiency, incorporating safety features like air bags in small segment cars, parking assistance features, automatic transmission in small segment cars, commercial vehicles ensuring the safety of drivers, two-wheelers with enhanced fuel efficiency, high engine performance, introducing features catering to the female customers etc. The average growth in terms of number of units of

For the youth bike we decided to keep the advertising expenditure at 2 million in order to raise the awareness of this new product line. This also helps establish a good market share in case competitors also decide to launch the youth bike. Since we have a low capacity for the bike, we also decided to increase the price from $370 to $400, resulting in an increase in gross margin. With this increase, we are still producing at a high yet relatively low volume.

Thorr has decided to launch RRoth. $12,649,000 is spent out of allotted $13 million dollars for the marketing plan. Keeping the young people and their salary range in mind, new motorcycle will be priced between $13000 and $15000. Wide range of promotional techniques will be used including sponsoring mega events like Daytona and getting celebrity endorsements. It also included insurance facility, protection offerings, and featuring of RRoth in Hollywood movies. Movies were specially focused because of young target audience. Dealers will sell the motorcycle all over the country. Official website will give complete information about the product including financing options. Planned services include customization options, club memberships and dealer training program. Financing option will ensure the customer from lower income group. Thorr is performing much better after the implementation of all the recommendations. Now, young people are opting for the new product enhancing company’s market position as well as sales.

Absence in the two and three wheeler tire segments is one of the weaknesses of Apollo as it will affect the company competitiveness. (Market line, 2015) Unfortunately, rivals of the company which included CEAT and MRF are providing tires for customers in two wheeler product segment. (Market line, 2015) An intense development recently has been observed in the Indian two wheeler market. (Market line, 2015) Based on industry forecast, in the year of 2016 and 2017, around 22-23 million units of two wheelers will be sold. (Market line, 2015) Therefore, Apollo should combat this weakness by treating this as an opportunity for company to increase competencies

Prior to the first year of decision makings, our bike firm of Get Wheel took some time to study and consider numerous strategies that would bring the shareholder value to the top early on. We also had the goal in mind to accomplish of providing the greatest maximum benefit to the owners. Before officially entering the market, our competitors had an equal starting shareholder value of $10.82. Our firms starting plan was to have the shareholder value above all the competitors early on. Get Wheel set the price of the first mountain bike slightly above the suggested retail price. To attract many consumers, Get Wheel spent the most on advertising and public relations in total in comparison with the competitors. The goal was to create more awareness and thus attracting customers and increasing shareholder value. As a result of such spending, Get Wheel

Market is separated into the three sections. The low cost Youth Bike, mid-range Mountain Bike and the high end Road bikes. Due to the very competitive market, government is regulating and prohibiting competition from other countries. Only local manufactures are able to produce, at the beginning just Mountain Bike segment, later on the rest two also.

Sales price for the mountain bike went up by a very insignificant amount of $1 and forecasted sales were reduced to $18,918 due to the release of the youth bike, which would be KHMJ’s main focus. The youth bikes price was set at $425, $50 higher than the recommended price; along with forecasted sales of 58,099 units. The reasoning behind the huge volume is based on the market size of the youth market in addition to hopes competitors would rather enter road bikes and/or upgrade mountain bikes. Branding was cut down by $500,000 to $200,000 due to a high need of funds to be allocated towards the youth bikes expenses, all extra support was also removed in order to make ends meet. There was a 1 percent decrease in margins for discount stores, otherwise retail margins were untouched. The new youth bike was introduced to increase options and reach new potential markets in order to increase income and shareholder

According to me, the motorcycle industry is very attractive. The main reason to back my claim is the level of competition in the industry. There is a very high level of completion between all the companies present in this particular segment. The main factors that drive this rivalry are different positions of different players within the industry, differences in technical know-how, different marketing campaigns, differences in core nature of the products and differences in strategies. The players in this particular industry don’t fight over price of their products, they rather compete with each other in terms quality of their products and the nature of their services to different segments of customers. Each player had its own unique strategy and nature of the product for a particular segment of customers, this tends to intensify the competition amongst companies in the industry.

India is the 4th largest economy by ppp index and growth in urbanization is further increasing the sales of automobiles.

Please review the following sections based on your current pricing strategy and market research as well as future recommendations. The report contains a SWOT analysis that will highlight the need for a switch in pricing strategy from the current Value Based pricing to Price leadership. FSI is the only manufacturer of the HERO line product having only one competitor (Guardian) which currently holds a market share of 42%. This fact underlines our company standing as an Oligopoly and allows us to lead the way in price determination.

Motorola was first founded in 1928, making battery eliminators for household radios. In 1929 the company designed and manufactured and car radios, then a new concept, and subsequent sales kept the company afloat during the Great Depression of the 30s.

Honda is one of the world’s largest motorcycle manufacturers and of the leaders in the automakers industry. It was founded in 1948 by Soichiro Honda and Takeo Fujisawa. It’s headquarter is in Tokyo, Japan and it serves worldwide. Honda has 492 subsidiaries and affiliates accounted under its equity. The company develops, manufactures, and markets a wide range of products such as: automobiles, motorcycles, scooters, ATV’s, electrical generators, water pumps, lawn and garden equipments, robotics, jets, jet engines, and thin-film solar cells. In 2001, Honda became the second-largest Japanese manufacturer and in 2008, it became the fourth largest automobile manufacturer in the United States. Honda’s major products are