The Marketing mix of Hero Motocorp analyses the 4Ps of Hero Motocorp, which includes the Product, Price, Place, and Promotions. Hero Motocorp is a public automotive company that manufactures and sells scooters and motorcycles. Initially, the company was established in 1982 and was called Hero Honda. However, in 2011, the company decided to split with its Honda Group; hence, a new company was formed by Hero Motocorp.
Hero Motocorp is a company that has the guts to implement its clever ideas into hard reality. This has been possible only because of the sheer determination of the company and its tendency to lean towards top-tier technology. Some of the main competitors of this company are as follows-
- Bajaj
- Yamaha
About Hero Motocorp
- Type: Multinational motorcycle and scooter manufacturer
- Industry: Automotive
- Founded: 1984
- Founders: Brijmohan Lall Munjal, Om Prakash Munjal, and Sohan Lal Munjal
- Headquarters: New Delhi, India
- Area served: Worldwide
- Current CEO: Pawan Munjal
- Number of employees: 8,599 (2020)
- Major products: Motorcycles and scooters
Table of Contents
Hero Motocorp Product Strategy
The critical focus of Hero Motocorp has been on introducing robust and steady products with high technology and vivid and visionary imagination. The foresight to realize the customers’ aspirations and anticipate the megatrends is a remarkable experience.
Although Hero Honda group has been associated with many scooters and motorcycles like the Karizma, Splendor Pro, Hunk, Glamour, Passion Pro, and Glamour F1, the company under its name Hero Motocorp launched its first bike called Hero Impulse in November 2011. The following year saw new products with better mileage, drivability, and improved power. These new models were Ignitor and Maestro, promoted as a masculine scooters for the younger generation.
In 2013, the company updated fifteen products. These were Glamour FI, Karizma R, Glamour, Passion Xpro, ZMR, Passion Pro, Hero Motocorp Super Splendor, HF Deluxe ECO, Splendor iSmart, Pleasure, Xtreme and Splendor Pro. It introduced the technology of the Engine Immobilizer in Extreme and the integrated braking system in Pleasure.
In 2014, Hero Motocorp added new products to its kitty, like the Xtreme Sports, Splendor Pro Classic, and better Pleasure, Maestro, Karizma R, and ZMR models. Later, the company also updated Splendor Pro and Passion Pro.
The new Product Mix of Hero Motocorp in 2023 is as follows (Source).
- Diverse Range in Commuter, Executive, and Premium Segments: The company focuses on new launches in these segments, catering to consumer needs and preferences.
- Refocusing on 100cc and 110cc Segments: Hero MotoCorp is refreshing its strategy in these segments, where it already holds a strong market position, particularly in rural markets.
- Premium Segment Expansion: The brand is enhancing its foothold in the premium segment with upgraded Xtec variants and has plans for a 450cc Hero Xpulse and other high-capacity models.
- Partnership with Harley-Davidson: In collaboration with Harley-Davidson, Hero MotoCorp plans to launch a 400cc-plus motorcycle and manage service and parts requirements for Harley bikes.
- Electric Vehicles Expansion: The company is accelerating its electric vehicle strategy with the Vida electric scooter, planning to expand to 100 more cities by the end of the calendar year.
- Product Innovations and Variants: Hero MotoCorp has expanded its Splendor line and introduced the HF Deluxe at the entry-level with added features like tubeless tires and USB chargers, targeting urban and semi-urban markets.
- Please focus on the 125cc Executive Segment: The company is giving special attention to the 125cc segment, which competes with brands like Honda Motorcycles & Scooters India and has improved its market share.
Hero Motocorp Place Strategy
Hero Motocorp has ventured into newer markets with the help of extensive expansion plans. By penetrating distant markets, they are on the verge of becoming the future of India. Hero Motocorp has set up four plants for the manufacturing of two-wheelers. The company has established a very efficient distribution network to maintain its hold in the two-wheeler category. They have set up a network for sales and services with a minimum of 6000 dealerships at most service points in all parts of the country. It also has dealer-appointed online retailing and outlets at all important and strategic places.
Hero Motocorp has the intrinsic ability to reach the far and wide nooks and corners of any place. Earlier, Hero Motocorp set up a chain of service workshops and made provisions to make its spare parts readily available from the dealers and stockiest. The bikes are available through all the dealers, who, in return, are responsible for workshops, proper infrastructure, and trained employees.
Under a new agreement with the Honda Group, Hero Motocorp can now penetrate West Asia, Africa, and Latin America markets. It can also take the help of any vendor at its convenience. In 2014, Hero unveiled its plans to penetrate the Bangladesh market.
Hero MotoCorp’s place strategy can be summarized in the following points:
- Extensive Domestic Network: In India, Hero MotoCorp has established a vast network of showrooms, making its products available in every possible location. This network includes around 6000 dealerships at most service points across the country, ensuring accessibility for every niche of society.
- Channelized Distribution in Urban and Rural Markets: The brand has a well-structured distribution network catering to urban and rural markets. This channelization enables Hero MotoCorp to reach a broad spectrum of consumers, aligning with the diverse needs of different regions.
- Global Presence in 35 Countries: Hero MotoCorp has expanded its international footprint across 35 countries. This global presence includes markets in Asia (Sri Lanka, Nepal, Bangladesh, Egypt, and Turkey), South America (Peru, Ecuador, and Colombia), and East Africa (Kenya, Tanzania, and Uganda), among others.
- Focus on High-Potential Overseas Markets: The company focuses on markets with significant growth prospects, like Bangladesh, and has invested in manufacturing in Colombia. Hero MotoCorp also strategically targets markets in Latin America and Africa, emphasizing markets where they see growth potential.
- Localized Production and Partnerships: In its international markets, Hero MotoCorp has established assembly units in collaboration with local distributors in countries like Kenya, Tanzania, and Uganda. This approach allows for more efficient distribution and better alignment with local market needs.
Hero Motocorp Pricing Strategy
Hero Motocorp follows a competitive pricing policy as it isn’t easy to follow the strategy involving skimming pricing exclusively in today’s market conditions. The company has decided to implement value-added pricing policies under which the customers are provided with the value for their money. Hero Motocorp is proud to announce that they are one of the few companies that believe in passing the benefit of any cost advantage to its customers. Although the company has emphasized qualitative products, it has kept the prices reasonable and affordable. Hero Motocorp has two-wheelers of varying price ranges to suit the needs of different sections of society.
Although some of their products are priced slightly higher than those of their competitors, buyers prefer them because of quality, fuel efficiency, and better mileage and performance. The company is also set to introduce bikes priced at a premium rate, yielding higher margins and revenues. Along with these products, some reasonable and economically priced products are also to be launched for low-budget groups of consumers. Due to its efficient distribution network, the company has cut and absorbed the excess costs, resulting in higher sales and revenues.
Several vital aspects characterize Hero MotoCorp’s pricing strategy:
- Competitive Pricing for Mass Market: Hero MotoCorp strategically prices its bikes and two-wheelers to appeal to the mass market. This competitive pricing is essential for capturing a broad customer base.
- Variable Pricing Based on State Taxes and Features: The ex-showroom prices of Hero MotoCorp’s products vary from state to state, influenced by factors such as VAT and other tax constraints. Additionally, the price of each model varies depending on the features and value additions it offers.
- Slightly Higher Pricing Than Competitors for Added Value: While Hero MotoCorp’s pricing is a bit higher than competitors like Bajaj, Honda, and TVS, this is justified by the additional value and features their products offer. The company positions its products as providing more benefits, thereby warranting a slightly higher price point.
- Focus on Fuel Efficiency and Attractive Pricing: Understanding that a significant portion of the Indian market values mileage over price, Hero MotoCorp manufactures highly fuel-efficient bikes. This focus, coupled with attractive pricing, helps convert customer interest into actual purchases.
- Market Skimming to Gain Largest Market Share: Hero MotoCorp has successfully skimmed the market through its competitive and feature-based pricing strategy, resulting in the largest market share in its segment.
Overall, Hero MotoCorp’s pricing strategy is a balanced mix of competitive pricing, value-based pricing, and market skimming aimed at appealing to a wide customer base while maintaining a strong market position.
Hero Motocorp Promotion Strategy
Hero Motocorp brand has a new and trendy identity that is vibrant and therefore represents its new outlook. The black and red colors in the logo give a strong message of solidity, passion, energy, and confidence.
The brand has created a two-minute anthem that focuses on creating an emotional connection with the ambassador and all its viewers and customers. The ads are about the story involving the struggle of a typical Indian and how he overcomes them and turns into an authentic and successful Hero.
Even the tagline “Hum Mein Hai Hero” is apt and fitting, showing that every person has a hero inside him. All the advertisements related to Hero Motocorp have catchy tunes displaying a solid message. These ads are shown regularly on television, radio, in newspapers, magazines, and billboards.
Hero Motocorp has always been associated with sports for most promotional activities. Previously, the company was involved in the Indian Open Golf Tournament and Hockey. Hero Motocorp, under its brand name, sponsored the tournament FIH Road to London in 2012.
Hero has always been associated with the cricketing fraternity for two-nation tournaments or world cups. Hero Motocorp has also been sponsoring the hugely successful television program MTV Roadies. The company has appointed cricketer Irfan Pathan and the famous actors Ranbir Kapoor and Hrithik Roshan as its brand ambassadors for its branding and promotional activities. Actor Akshay Kumar can be seen in most of this company’s ads.
Some Recent Video ads and Print ads of Hero Motocorp are:
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