••P

Chapter 4

Dimension of IVIarl<eting
Strategy of
Hero IVIoto Corp Ltd.
Introduction of Marketing

Marketing which was once a part of management now becomes

an independent subject. Nowadays, marketing is an important

area of study throughout the world.

The development of marketing is evolutionary rather than

revolutionary. There is no single answer to the question of what

is marketing?

Hence, everyone understood marketing in his own way.

"Marketing is what a marketer does."

Actually speaking marketing is a comprehensive term and it

include all resources and set of business activities necessary to

direct and facilitate the flow of goods and services from

producer to consumer or user including product, planning and

after sale service in the process of distribution.

Meaning of Marketing

The concept of market gives us the concept of marketing.

Marketing is a broader concept which includes all human

activities in relation to the market. It includes product, planning,

and development, buying and assembling, pricing and

discounting, distribution and selling, branding and packaging,

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grading and standarisation, transportation and warehousing,

promotion and advertising financing and risk bearing analysis

of market in terms of its present and potential customers.

Philip Kotler Core Concept of Marketing

Needs, Wants and

Demand

V
Products

V
Value and Satisfaction

v
Exchange and
Transaction

V
Market and Marketers

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Some Definitions of Marketing

"Marketing is a process which converts a source, distinct

knowledge into a contribution of economic value in the market

place. The purpose of business is to create customer".

- Peter F. Drucker

Marketing is an integrated system of action that creates value in

goods through creation of form, place, time, and ownership

utilities.

Richard Buskick

Nature of Marketing

Nature of Marketing

Specialised Socially Desirable

Managerial Function Function

Integration With Reflect Business

Other Function Mission

Adaption to Universally Application

Environment Varijibles 1to all Organisation

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Scope of Marketing

Managerial Activities

> Determining marketing objective

> Planning marketing function

> Organising the marketing function

> Directing the marketing fiinction

> Coordinating the marketing function

> ControlHng the marketing function

> Analysing & Evaluating the marketing function

Functional Activities

> Marketing Research

> Product Planning and Development

> Buying and Assembling

> Financing

> After Sale Service

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Functions of Marketing

Functions of Marketing

T
Research Exchange Facilitating
Functions Functions Functions

1. Marketing 3. Buying and 5. Transportation 10. Pricing

Research Assembling

2. Product 4. Selling 6. Storage and 11. Financing

Planning and Warehousing
Development
7. Standardisation 12. Advertising
and Grading

8. Branding 13. Risk-Bearing

9. Packaging 14. After-Sale-

Service

A brief explanation of marketing functions is as follows :

(A) Research Functions

Modem marketing concept is consumer-oriendted. The

success of marketing depends upon the fact that how

much we are able to understand the needs of our

customers and to produce accordingly. This fact gives

importance to research functions of marketing, which

include the following two functions :

1. Marketing Research : Marketing research has

become one of the most important functions of

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 marketing in moodem time. Marketing research is the

intelhgence service of the organisation. Marketing

research helps in analysing the buyer's behaviour,

relative popularity of a product effectiveness of

advertising media, pricing policies, packaging and

grading policies, distribution structure, strength and

weaknesses of competitors, etc.

2. Product Planning and Development

nfact, product planning and product development are

tv^o important functions of marketing. Product

planning is the starting point of every marketing

programme. Successful marketing depends on the

efficient manufacturing of the product matching with

the interest of consumer his assumptions and choices,

etc. Product planning is a process in which the type

form and design of the product is determined on the

basis of informations obtained with the help of market

research. It is a pre-production activity, through whicy

a marketeer try to fill the gap in the market demand

and generate revenue out of it.

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(B) Exchange Function

In marketing exchange means transfer of ownership. It

involves two separate function i.e. buying and selling.

Both buying and selling are complementary to each other

and not the contradictory. It is also known as

merchandising function, this include the activities which

are conducted for creating the demand and making the

product available in the market.

1. Buying and Assembling : Buying is the most

important function of marketing, because it is carried

out by all marketeers: the manufacturers, the

wholesalers, the retailers, etc. Buying and selling are

inseparable. Infact, efficiency of selling depends on

the efficiency of buying. A manufacturer has to buy

raw materials for production; a wholesaler has to buy

products to sell them to the retailer; a retailer has to

buy products to be sold to the consumers.

2. Selling : For many persons selling means marketing,

because selling is an indispensable part of marketing.

The purpose of all marketing activities is to sell the

products of the firm. Selling enables the firm to

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 achieve its objective by satisfying the needs of the

customers. Nowadays, selling has become a very

complicated function of marketing. There are large

number of substitutes available in the market and there

is severe competition in the market. A marketer has to

develop such a marketing strategy that help him to sell

his products.

(C) Physical Distribution Functions

These are the fiinctions that are related with creation of

place and time utilities. Physical transfer of goods from

the manufacturer to consumer take place by means of

transportation and storage. Followings are physical

functions of marketing :

1. Transportation : Transportation is the physical

means of carrying products from one place to another.

It plays an important role in marketing. Business and

transport are like twin brothers. With the development

of one, another also develops, Transport helps in

assembling and dispersing the products. It links

together the manufacturers and the consumers who are

located at different place. By carrying the products to

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 such places where they are needed, it creates time

utility. Transport also helps in widening the market

area.

2. Storage and Warehousing : Storage is another

important function of marketing and it involves the

holding of products in proper condition from the time

they are produced until they are demanded by the

consumers. When production is seasonal but

consumption is perennial or when production is

continuous but consumption is seasonal, storage

become necessary. Moreover, modem production is

carried on in anticipation of demand and hence the

goods produced in advance have to be stored by the

manufacturers till their demand arises. Nowadays

storage function has been performed at different levels

by the manufacturers, wholesalers, retailers and

professional warehouse keepers.

3. Standardisation and Grading : Standardisation

means setting standard of quality. It assures quality

and promotes uniformity of products. It also widens

the market of the product. Standardisation has now

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 been accepted as an ethical basis of marketing.

Standardisation assures the consumers that the goods

are pure and uniform in quality and performance.

Gnerally, there are four bases for determining

standards (i) Quality, (ii) Quantity, (iii) Measurement

and (iv) Size. It facilitates purchase and sale of

products, because in case of standardization / standard

products, goods are purchased by their brand name.

Industrial products are given brand names by their

manufacturers to convey to the users that their

products confirm to certain well defined standards. In

actual practice various standard forms are used by the

marketeers for their products such as : (i) ISO, (ii) ISI,

(iii) AG mark, (iv) Quality Mark, etc.

(D) Facilitating Functions :

Facilitating functions of marketing is attaining

importance day by day. These functions make the

marketing process more easy and systematic. Facilitating

functions are supporting activities to the marketing

process. Some important facilitating functions are as

follows:

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1. Branding : According to American Marketing

Association; 'M brand is a name, term, symbol,

design or a combination of them which is intended to

identify the goods and services of one seller or group

of sellers and to differentiate them from those of

competitors". Branding has become an indispensable

part of modem marketing. Agricultural products and

mining products need grading, whereas manufactured

products need branding.

2. Packaging : Packaging is concerned with formulating

container or wrapper for the product. Its main

objectives is to provide convenience in handling,

ensure freshness and quality and to prevent

adulteration. It also helps in distinguishing the product

of the company from that of competitors.

3. Pricing : Determining the price of a product is an

important function of a marketing manager. A sound

pricing policy is an important factor for selling the

products to the customers. The price policy of a firm

should be such that it attracts all type of customers.

Price policy of the company directly affects the profit

element and successful functioning of the company.

4. Financing : Finance is life blood of all economic

activities and thus of modem marketing. In large size

business units, huge funds are required to hold the

stock and to meet the cost of marketing. It is very

difficult to carry on marketing activities smoothly

without the availability of adequate and cheap finance.

It also requires short-term finance to provide credit

facilities to its regular buyers as considerable sales are

on credit basis.

5. Advertising : Modem is the age of advertising. There

is hardly a product or service which goes to the

consumer without advertising. That is why, nowadays,

advertising is considered as the main fiinction of

marketing. Generally, customer have no knowledge

about the new products launched in the market.

Therefore, it is possible that until the customer is not

duly informed about the product, its quality, price and

the place where from it can be purchased, etc. He will

not buy the same. This information is supplied with

the help of advertisement. Advertisements is needed

for both consumer products as well as industrial

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 products. Persuasive communication will facilitate the

marketer to increase and maintain their market share.

6. Risk bearing : Business world is full of risks.

Unforeseen conditions and uncertainties give rise to

risks. Marketing of goods involves number of risks. A

marketer has to face risk due to : (i) Change in

demand, (ii) Change in fashion, (iii) Fall in price, (iv)

Competition, (v) New inventions, (vi) Change in

habits or tastes of consumers, (vii) Change in

technology, (viii) Losses from spoilage, depreciation

and obsolescence, (ix) Losses from fire, theft,

accident, (x) Losses from natural calamities, etc. That

is why, it is said that marketing is a risk-bearing

activity.

7. After-Sale-Service : Nowadays, marketing functions

do not end on sale. Rather, they continue ever after

sale as the marketer provide number of after-sales-

services like home delivery, guarantee and warrantee,

free repair services, financing facility, etc. These

services improve the standard of marketing functions.

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Marketing strategy of Hero Moto Corp Ltd.

Marketing strategy of Heromoto Corp serves as the fundamental

underpinning of marketing plans designed to reach marketing

objective. Marketing strategy serve as the foundation of a

marketing plan. Marketing strategy are partial derived from

broader corporate strategies, corporate mission, corporate goals.

They should flow from firms mission statement. Marketing

strategies and marketing objective can be viewed as being part

of continuum. Corporate objectives are essentially top doven

goals for the strategic business unit to achieve.

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Marketing Strategy Implementation of Hero Moto Corp
Ltd.

Hero Moto Corp implementation strategy include organisation

of firm resources and motivation of the staff to achieve

objective

> Marketing Structure

> Marketing Strategy

> Leadership

> Human Resources

> Organisational Resources

> Performance Criteria And Information Need

The Marketing Plan of Hero Moto Corp Ltd.

> How the marketing plan guides implementation

> Contents of the marketing plan

> Managing the planning process

> Way to goal directed objectives

> Full Exposure to Management and Employees

> Boost Internal Communication

> Provide long term vision to company

> Customer oriented marketing

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Hero Moto Corp Ltd. Marketing Strategy Overview

37
Marketing Mix of Heromoto Corp Ltd.

Product : Heromoto Corp known for its quality and advanced

technology satisfying the need of the customers both in urban

and rural areas.

Place : Heromoto corp concentrate not only on urban areas, its

target rural areas as well its showroom are almost everywhere in

the country.

Price : The pricing strategy of hero two wheeler is economised

used value for money, they were available at very reasonable

price.

Promotion : The promotion strategy of Hero moto corp is

sponsoring lot of national and international events and endorsed

by well known personalities of the country.

Segmentation, Targeting & Positioning of Hero Moto

Crop Ltd.

A market segment consists of a group of customers who share a

similar set of needs and wants.

The major segmentation variables :

> Geographic Segmentation

> Demographic Segmentation

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> Psychographic Segmentation

> Behavioral Segmentation

For bikes demographic segmentation play an important role.

Market Segmentation of Hero Moto Corp Ltd.

Hero Moto Corp caters to a wide consumer base. It has

segmented its market based on income and age. It caters to

youth of all income groups. Its highest selling bike Splendor is a

favorite in sub urban and rural India. It potrays itself as the most

efficient bike range to caters to Indian roads.

Target Market of Heromoto Corp Ltd.

Heromoto Corp follows selective specialisation. It has wide

range of bikes from Rs. 37,000 to 95,000. Each producet has

multiple optional features. The USP that it uses are; strong,

sturdy and powerful, greater mileage, low maintenance cost,

safe to ride, ease and comfort.

Its target market includes lower middle class consumer to upper

middle class consumer. It is affordable, available and acceptable

by all.

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Positioning Strategy of Heromoto Corp Ltd.

> Fill it, Shut it, Forget it Campaign

This campaign focused on the mileage of Hero bikes. It says

once you fill oil in the bike's tank, you are tension free. Due

to its higher mileage, you can travel as much as you want

without bothering to refill oil.

> Dhak Dhak Go Advertisement Campaign

Dhak Dhak refers to the heart beat. Therefore this campaign

showed that if you are riding a Hero bike you are listening to

your heart beat. This campaign connect emotionally to the

consumer as it shows the connection of bikes to the heart of

every Indian.

> Desh Ki Dharkan Advertisement Campaign

Desh Ki Dharkan refers to the heart beat of the country. It

symbolize that all people in India are emotionally attached to

their country.

This campaign places Hero bikes as the heart beat of the

entire nation uniting everyone as a nation.

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> Hum Me Hai Hero Campaign

This is the recent advertisement of Hero Moto Corp. This

advertisement tries to prove that we all are bom super stars.

We just need to believe and focus in ourselves. There is

nothing impossible in the world and there is nothing that

can't be achieved. Through perseverance we can reach great

heights and achieve whatever we want. We just need to

believe firmly that we are a hero.

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Objectives of STP

This study was conducted following objective in the mind :

> To study the factor which influence the purchase of Hero

two wheeler.

> To know the customer level of awareness of Hero two

wheeler.

> To find after sale service affected by hero moto corp.

> To understand Hero two wheeler sector in India.

> To know the Hero two wheeler growth and development.

Factors Affecting Marketing Strategy

> External Environment

> Corporate Strategy

> Corporate SBU's Relationship

> Research & Development

> Manufacturing

> Finance

> Marketing Policies & Strategy

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strategy Evaluation & Control of Hero Moto Corp Ltd.

Establishing
Performance
Standard

Evaluating
Actual
Performance

Taking
Corrective
Action

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