Subsequently, in August 2011 the company was renamed Hero Motorcar with a new corporate identity. COMPANY PROFILE “Hero” is the brand name used by the Mum]al 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 Diarrhea India. Ninjas 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 Ninjas family.
During the 1 sass, the company introduced motorcycles that were popular in India for heir 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 Hero Motorcar has three manufacturing facilities based at Diarrhea, Surgeon in Harlan and at Hayward In Outranked. These plants together are capable of churning out 3 million bikes per year.
Hero Motorcar has a rage sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program. The company has a stated alma of cleaving 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 Motorcar 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 their fifth factory in Western India. There is no confirmation where the factories would be built. SALES PROMOTIONS Sales Promotions consist of many devices aimed at generating active Customer response within a short period of time. Interestingly, most of the effort has been receiving an increasingly large share of the advertising/Promotion budget, particularly for Promotion oriented toward the trade. Coupons and Promotions play a large role on the web as well.
Over percent of both first time and repeat buyers were influenced by either coupons or free shipping. Promotion competes with advertising for bud genital so provides a different approach to influencing sales. In the case of advertising, the basic approach is to create or increase a desire on the part of the Customer for the product itself. In contrast, most Promotion simplicity assumes the level of desire for the product is fixed and tries to “close the deal” by providing incentives to purchase. This is, of course, an oversimplification. A get them while supplies last” ad focuses on immediate response, and Promotions, Involving free samples aim at generating repeat business. Nonetheless, Promotions, many of which involve temporary price reductions, are seen as a form of marketing effort that is more aggressive and oriented toward immediate results. In reality, one if the few ways product managers can obtain a short run change in sales or market share is to use sales Promotion activities. In general Promotion falls in to three main categories: 1 . Final Customer Promotion 2.
Manufacturer Promotion to the channels or Trade Promotion. 3. Channel originated Promotion, or Retailer Promotion. Final Customer Promotion comes directly to the Customer from the manufacturer. Trade Promotion, in contrast, is directed at intermediate channels of distribution in an attempt both to get them to buy more of a product and to commit their own effort to “pushing” the product through the nest channel and ultimately to the consumer. Channel-originated Promotions are run by the channel itself to either the next channel in the distribution chain or to final Customers.
For consumer packaged goods sold through supermarkets, retailer Promotions are an especially visible form of Promotions. Displays, feature advertising, and price deals (price cuts, free researched, and retailer-issued coupons) all affect sales and profits and either augment or detract from manufacturers direct Customer Promotions. In general, the purpose of channel Promotions is to increase sales of all products to the Customer. Promotion objectives and programs may be gathering offensive, or defensive. Company to offer a particular Promotion or level of Promotion support.
In most markets, however, competitors quickly match Promotions. On top of that, in some areas, notably consumer packaged goods; the channels have become sufficiently powerful to both demand and schedule Promotions. Simplified Channel and Promotion Structure The result is that companies, including those with household brand names and dominant market shares, are promoting due more to a perceived necessity to match competition and satisfy the channels than to a conviction that Promotions benefit the manufacturer.