History of Motorcycles Essay

History Of Motorcycles And The auto Industries merchandising Es avow cable carmobile is maven of the prominentst industries in global commercialize. Being the cartroader in harvest-time and wait on technologies in the manufacturing sector, it has been recognized as one of the drivers of economic view. During the croak decade, well directed efforts shake been get a recollective to provide a saucily rise up along to the car form _or_ system of g overnment for realizing the sectors adept potential for the prudence. Steps rival abolition of licensing, removal of quantitative restrictions and prototypicals to hold the policy framework in consonance with WTO requirements have get the labor in a progressive track.Removal of the restricting purlieu has helped restructuring, and enablight-emitting diode pers constantlyance to absorb bracing technologies, aligning itself with the global development and in like manner to realize its potential in the sylvan. T he 2-cyclist manufacturing has been in existence in our scope since 1955. Two- bicycler discussion section is one of the close to great components of the automobile sector that has undergone epochal replaces repay fit to shift in policy environment in India. The constitution of the both- bicycler industry has witnessed ocean changes in the postreform period. It consists of deuce-ace separates viz. icebreakers, pedals and mopeds.India is the succor colossalst maker and manufacturing backup of two-wheelers in the human beings. Indian two-wheeler industry has got owing(p) ontogeny in the put out fewer geezerhood. wedge Honda, the introduction No. 1 two wheeler manufacturer for bypast 5 geezerhood in row is a knock venture surrounded by Indias poor boy Group and Honda Motor guild, Japan has non unaccompanied created the realitys carapace-by-case largest two wheeler play along that also one of the virtually boffo joint ventures earthly conc ernwide. India is the minute largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular ripening in the last few divisions.Indian two-wheeler industry had a humiliated sourceage in the early 50s. The Automobile Products of India (API) started manufacturing scooters in the country. Bikes atomic number 18 a study department of Indian two wheeler industry, the early(a) two cosmos scooters and mopeds. Indian companies argon among the largest two-wheeler manufacturers in the world. pigboat Honda and Bajaj Auto ar two of the Indian companies that carousel the list of world companies manufacturing two-wheelers. The two-wheeler trade was undefended to extraneous companies in the middle 1980s. The openness of Indian mart place to foreign companies bequeath to the arrival of spick-and-span models of two-wheelers into India. weak availability of loans from the banks, relatively diminished compute of relate and the e ntailment of prices citeed by the dealers and manufacturers clear to the change magnitude pauperism for two-wheeler fomites in India. This lead to the affectionate fruit of Indian automobile industry. The two-wheeler industry in India has grown chop-chop in the country since the announcement of the process of liberalization in 1991 by the whence finance minister Dr. Manmohan Singh, now rash Minister of India. Previously, there were completely a handful of two-wheeler models available in the country. Currently, India is the stake largest producer of two-wheelers in the world.It stands following only to China and Japan in footing of the shape of two wheelers produced and the sales of two-wheelers respectively. In the year 2005-2006, the annual mathematical product of two-wheelers in India stood at around 7600801 units. The move of owning two-wheelers is collectable to a variety of facts peculiar to India. wizard of the chief factors is poor public fascinate in many parts of India. Addition each(prenominal)y, two-wheelers offer a great deal of thingummy and mobility for the Indian family. hitman Honda Motors Limited, found in Delhi, India, is the worlds largest manufacturer of bicycles. attack aircraft Honda is a joint venture that began in 1984 between the grinder Group of India and Honda of Japan. It has been the worlds biggest manufacturer of 2wheeled tugized vehicles since 2001, when it produced 1. 3 jillion motor bikes in a virtuoso year. electric ray Hondas immensity is the worlds largest interchange cycle. EVOLUTION OF TWO-WHEELER assiduity IN INDIA Two-wheeler segment is one of the most important components of the automobile sector that has undergone signifi lott changes payable to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955.It consists of three segments viz. scooters, motorcycles and mopeds. pontificaly to the figures published by SIAM, the part of two-wheelers i n automobile sector in ground of units sold was ab turn up 80 per cent during 2003-04. This risque figure itself is suggestive of the splendor of the sector. In the initial years, access of firms, faculty expansion, choice of products including capacity mix and engine room, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited odoriferous policy options that came into being in fresh sixties.Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign shift Regulation Act (FERA) were aimed at regulate monopoly and foreign togment respectively. This controlling mechanism over the industry resulted in (a) several(prenominal) firms operating below minimum surmount of efficiency (b) underutilization of capacity and (c) usage of overaged technology. Recognition of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimatel y took a more than prominent shape with the introduction of the new-fashioned Economic Policy (NEP) in 1985. thus far, the study(ip) set of reforms was dismissed in the year 1991 in response to the major macroeconomic crisis approach by the economy. The industrial policies shifted from a government activity of regulation and tight control to a more liberalized and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable maturation in human action of brandmarks entered the market that compelled the firms to argue on the basis of product attri stilles.Finally, the two-wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as out harvest-home in number of players. However, with heterogeneous policy measures undertaken in order to increase the contest, though the degree of concentration has been decrease over beat, deregulation of the industry has non really resulted in high aim of competition. A GROWTH PERSPECTIVE The com stick of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991, the care of scooters was about 50 per cent of the pith 2-wheeler imply in the Indian market.Motorcycle and moped had been experiencing about equal level of dowerys in the total number of two wheelers. In 2003-04, the dish out of motorcycles increase to 78 per cent of the total two-wheelers spell the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. Different scenarios have been presented based on disparate assumptions regarding the demand drivers of the two-wheeler industry. The demand for mopeds is not presented in this analysis due to its already shrinking status compared to motorcycles and scooters.The high growth rate in motorcycle segment at present pull up stakes calm after a certain back breaker beyond which a condition of rest result set the growth path. other important thing to time lag in mind term interpreting these growth rates is that the forecast could consider the cut down till 1999 and the model could not allow the recent developments that have taken put in last few years . India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a gloomy beginning in the early 50s.The Automobile Products of India (API) started manufacturing scooters in the country. Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. wedge Honda and Bajaj Auto are two of the Indian companies that reach the list of world companies manufacturing two-wheelers. The two-wheeler market was opened to foreig n companies in the mid 1980s. The openness of Indian market to foreign companies lead to the arrival of new models of two-wheelers into India.Easy availability of loans from the banks, relatively low rate of entertain and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry. genius HONDA protagonist Honda Motors Limited, based in Delhi, India, is the worlds largest manufacturer of motorcycles. battler Honda is a joint venture that began in 1984 between the fighter aircraft Group of India and Honda of Japan. It has been the worlds biggest manufacturer of 2wheeled motorized vehicles since 2001, when it produced 1. 3 gazillion motorbikes in a exclusive year.During the 80s, crampfish Honda became the first caller-out in India to plant that it was realistic to drive a vehicle without polluting the roads. The detainment companionship introd uced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary Fill it boot out it Forget it campaign captured the imagination of commuters crosswise India, and mill Honda sold zillions of bikes purely on the commitment of increased mileage. everyplace 20 million Hero Honda two wheelers pace Indian roads like a shot. These are almost as many as the number of people in Finland, Ireland and Sweden put togetherHero Honda has consistently grown at double digits since inception and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Hondas top -selling motorcycle Splendor. This festive season, the company sold half a million two wheelers in a single montha feat scarce in global automotive history. Hero Honda bikes mensesly roll out from its three globally benchmarked manufacturing facilities. Two of these are based at Dharuhera and Gurgaon in Haryana and the third natio n of the art manufacturing facility was inaugurated at Haridwar, Uttrakhand in April this year.These plants together are loose of producing out 4. 4 million units per year. Hero Hondas blanket(a) sales and attend to cyberspace now spans over 3000 client twin points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorised representatives of dealers located crosswise different geographies. Hero Honda determines its relationship with guests. Its unique CRM initiative Hero Honda Passport Program, one of the largest programs of this physical body in the world, has over 3 million members on its roster.The program has not only helped Hero Honda understand its nodes and deliver take account at different price points, but has also created a loyal familiarity of brand ambassadors. Having reached an unassailable pole touch in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that ever-changing demographic profile of India, increasing urbanization and the em index numberment of rural India will fit millions of new families to the economic mainstream.This would provide the growth ballast that would stick out Hero Honda in the years to commence. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors compactly points out, We pioneered Indias motorcycle industry, and its our office now to take the industry to the next level. Well do all it takes to reach there. WHICH SEGMENTS argon BEING butt endED AND NEED TO INFLUENCE THE TARGET MARKET? Geographic breakdown calls for character of the market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods.In the southeastern Asian context, geographic segmentation assumes grandness due to variations in consumer preferences and purchase habits across different regions, across different countries, and across different states in t hese countries. Demographic cleavage In Demographic Segmentation, we divide the market into concourses on the basis of variables such as age, family size, family life cycle, income, occupation, education, religion, race, generation, nationality and social class. One precedent demographic variables are so greenplace with marketers in that theyre often associated with consumer postulate and wants. Another is that theyre hands-down to measure.Psychographic Segmentation Psychographics is the science of using psychology and demographics to ruin understand consumers. In psychographic segmentation, buyers are carve up into different groups on the basis of psychological/personality traits, lifestyle, or values. People inwardly the same demographic group contribute exhibit very different psychographic profiles. value and lifestyles fundamentally affect product and brand choice of consumers. Religion has a signifi pottyt influence on values and lifestyles. merchandise Targeting Ef fective Segmentation Criteria to be useful, market segments must rate favorably on quintuple let out criteria 1.Measurable, the size, purchasing power and characteristics of the segments tooshie be measured. 2. Substantial, The segments are large and moolahable enough to serve. A segment should be the largest possible homogenous group worth going after with a tailored marketing program. It would not pay, for example, for an automobile manufacture to develop cars for people who are less 4 feet tall. 3. Accessible, The segments can be effectively reached and served. Differentiable, The segments are conceptually decided and respond differently to different marketing-mix elements and programs.If matrimonial and unmarried women respond similarly to a sale on perfume, they do not constitute separate segments. Actionable, Effective programs can be formulated for attracting and serving the segments. Hero Honda is targeting at youth, Unicorn looked sportier than all the existing moto rcycles in the premium segment and was pitted against Bajaj Pulsar, the d stabbing with 75 percent market share in that segment.DIFFERENT PROMOTIONAL TOOLS use AND THE STRATEGY BEING USING THESE TOOLS? promotion preceding(prenominal) the line (ATL) is an advertising proficiency using mass media to promote brands.major(ip) above-the-line techniques accept TV and radio advertising, score advertising and internet banner ads. This theatrical character reference of chat is conventional in spirit and is considered impersonal to customers. The ATL scheme makes use of current traditional media television, newspapers, magazines, radio, outdoor, and internet. Hero Honda utilize to a higher place the greenback advance because in the Above the Line promotion co. members used advertisement with Radio, T. V. , Newspaper and Other media communications. empower Geographical Placing Geographical placing of the product has divide into 4 markets and these are 1.Local 2. study 3. R egional 4. International Hero Honda used National Market for sale the Hero Honda Splendor. Hero Honda is also planning an extensive marketing campaign with the launch, which would reflect the bikes contemporary styling and advanced technology. The structured marketing campaign for ZMR will include outdoor media, Web, mobile, ground activations, print and electronic media, said the company. Hero Honda delectation why should boys have all the fun? Isnt that a must ride statement, that can tempt any girl to near buzz with the wind.The Hero Honda Pleasure is Hero Hondas maiden venture into the burgeoning gear-less scooter market. The pleasure has schemed its strategies to be the best vender by concentrating much on the interest of young girls who love to rock the field of glamor, luxury and solace. Eye catchy features The Pleasure sports flashy comments, from Tahitian blue metallic, take silver to the ever trendy colour black. Multi-reflector headlight, body-coloured mirrors, m ulti-reflector indicators, trendy rear grip, modern tall light cluster, and a new age oval-shaped instrument panel all make the Pleasure a head-turner.For more comfort during the ride, the scooter is designed with broader seat that offers great travel comfort. Capacious luggage space, has been piece which, is large enough to advance plane a helmet. The Pleasure is equipped with a technology, tuff-up tube and tyre combo that offers flying remedy in the event of a puncture, by releasing an anti-puncture sealant gel. It is capable of attaining a top speed of 77kph. Hero Honda ahead in introducing new technology.The Company has left the competition in the motorcycle segment far behind in garishnesss as its nearest rival, Bajaj Auto, is a removed second with a market share of around 28 per cent only. The companys supremacy till get out relates to the timely closings regarding introduction of new technology products. Hero Honda was the first company in India to set standards fo r fuel efficiency with the launch of a four-stroke motorcycle in the mid-Nineties. This decision is yielding correct results even today as can be stick outn from an uninterrupted growth witnessed by the company in its sales turnover and profitability margins over the past several years.However, future growth in these fiscal parameters, to a large extent, would also depend upon the way competition gears up in the domestic motorcycle market from the local, as well as foreign players. An eye on the customer In an effort to enhance value for customers, the company has initiated the Rs 1001 customer price acquire program across all its models. In addition, the passport program which entitles a customer to a Rs 1 lakh possibility insurance, lucky draws, gifts against redeemable points, cash discount on consumer durables, free tickets to company sponsored events, and so on has met with an encouraging response (it has attracted around five lakh members to date) and is expected to con tinue its success into the future as well. Hero Honda A passion for growth Hero Honda has come up with yet another year of sharp growth in financial performance. The company has developed this ability to leaping a surprise in cost of outperforming expectationsThe increase in sales volume and rise in identification have both played a role in takeing up the turnover. The change in product-mix in favour of higher value products has resulted in improved realization for the company.The growing popularity of the furore model appears to be the key factor behind improvement in unit realization. Aided by the emphasis on indigenisation, the company has managed to gain better operational efficiency. The positive relate of these measures is reflected in the form of lower raw material cost (in relation to sales). The company is all set to make a foray into the lower price segment of the four-stroke market. Taking into account the recent trend in performance, the company appears well posi tioned to hold off its top position in the motor cycle market and also sustain the recent rate of growth.Hero Honda is foundation Leader For 2001- 02, volume up by 38 per cent net profit soars by 88 per cent total turnover up by 42 per cent Achieves a high 48 per cent motorcycle market share and 33 per cent two-wheeler market share Announces 350 per cent final dividend and 250 per cent exultation dividend (over and above special interim dividend of 250%) Over the last five years, companys total turnover grows by a whopping 580 % PAT by 919 % Hero Honda plans sports spectacular.Hero Honda plans to organize a sports and enamor extravaganza in the country, on the lines of the Laureus conception Sports Awards currently on in Monaco , in association with the Laureus world sports for Good Foundation, the labor organizer of the award. Revving up to stay on top Having achieved the status of the largest two-wheeler company in the world, Hero Honda now seeks to retain that slot. The com pany has a large portfolio of brands, with the money-spinners being mainly Splendor (the worlds largest selling bike) and Passion.However, the company claims it was the launch of the 150cc CBZ, which established Hero Honda as an aspirational brand. The launch of CBZ got us into a different league altogether. Celebrating its 25th year, Hero Honda released an forward-looking music video in the month of September. Titled Hero Honda dhak Dhak Go, and involving as many as eight brand ambassadors of Hero Honda, the music video has been receiving rave reviews.WHICH STRATEGY come out OF PUSH AND PULL IS USED AND wherefore? Hero Honda is using both the strategy push as well as place A push-pull-system in business describes the movement of a product or information between two subjects.On markets the consumers usually pulls the goods or information they demand for their needs, while the offerers or suppliers pushes them toward the consumers. Different push and pull strategies used by mil ling machinery Honda Push strategy Another center of the push strategy in marketing can be found in the communication between seller and buyer. In dependence of the used medium, the communication can be either interactive or non-interactive. For example, if the seller makes his promotion by television or radio, its not possible for the buyer to interact with.On the other hand, if the communication is made by shout out or internet, the buyer has possibilities to interact with the seller. In the first case information is and pushed toward the buyer, while in the second case it is possible for the buyer to demand the indispensable information according to his requirements. Applied to that subdivision of the tag on string where demand incredulity is relatively small Production & distribution decisions are based on long term forecasts Based on past orders received from retailers warehouse (may lead to Bullwhip effect) Inability to meet changing demand patterns.Large and variable production batches Unacceptable service levels Excessive inventories due to the need for large safety stocks take away strategy In a pull system the consumer requests the product and pulls it through the rake channel. An example of this is the car manufacturing company hybridization Australia. Ford Australia only produces cars when they have been say by the customers. Applied to that portion of the supply chain where demand uncertainty is high Production and distribution are demand driven No inventory, response to detail orders.Point of sale (POS) data comes in handy when shared with supply chain partners Decrease in lead time Difficult to implement Key Hero Honda brands continue to drive strong volumes across segments CD Deluxe in entry segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the premium segment. .Hero Hondas strategy for raptorial top line growth through new product launches, brand construc tion initiatives backed by innovative communication has resulted in market share gain across every segment.Indeed, Hero Hondas share in domestic motorcycles market has been growing upward of 50 per cent, contempt the slowdown in the two-wheeler industry However, we will stay true to our winning strategy, and keep refreshing our product portfolio and continue to redact in brand building. CRITICAL assessment The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance, pricing and easy loan repayments. Indian streets are full of people of all age groups riding a two wheeler.Motorized two wheelers are seen as a image of status by the populace. Thus, in India, we would see swanky four wheels jostling with our ever reliable and sturdy steed the two wheeler. Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. In India there are 7 scooter manufacturers, 9 motorcycle manufacturers, 3 moped manufacturers. Bajaj Auto, Hero Honda, TVS, etc are the leading manufacturers.HEROHONDA has been the worlds biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1. 3 million motorbikes in a single year. Hero Hondas Splendor is the worlds largest selling motorcycle. Today Hero Honda has an assembly line of nine different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Strategies followed by hero honda Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing.Promotion Bel ow the Line Promotion Below The Line is a common technique used for touches and feel products. Those consumer items where the customer will rely on prompt information than previously researched items. Below The Line techniques ensure recall of the brand while at the same time high spot the features of the product. Honda was already a household signalise in India. Hence, rather than putting major efforts into brand building, its marketing strategy emphatic on offering innovative products at competitive prices, novel promotional campaigns and development an extensive distribution networkSo at last we can say that hero Honda is having a very good promotional strategy and this is the main earth of its success. It basically focuses on its customer rejoicing and from time to time it keep on showing its creativity and innovation It However, we will stay true to our winning strategy, and keep refreshing our product portfolio and continue to invest in brand building. One of the key pi llars of hero honda strategy has been to consistently keep introducing new, advanced products and maintaining a balanced product portfolio.