Segmentation targeting and positioning of hero moto corp

Segmentation, Targeting and Positioning of Hero Moto Corp

Khushboo Priyambada
MFM I
NIFT, Bengaluru

1

1. Introduction to Two Wheeler Bikes
A motorcycle (also called a motorbike, bike) is a two wheeled motor vehicle. Motorcycles vary
considerably

depending

on

the

task

they

are

designed

for,

such

as long

distance travel,

navigating congested urban traffic, cruising, sport and racing, or off-road conditions. Motorcycles are one
of the most affordable forms of motorized transport in many parts of the world and, for most of the world's
population, they are also the most common type of motor vehicle. There are around 200 million
motorcycles (including mopeds, motor scooters, motorized bicycles, and other powered two and threewheelers) in use worldwide, or about 33 motorcycles per 1000 people. [1]
India, is the second largest producer of two-wheelers in the world. In the last few years, the Indian twowheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of
production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather
than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment.
Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. The
two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000
million. The motorcycle market share is about 81.5% of the total two wheeler market in India. Threefourths of the total exports in the two wheeler automobile industry are made in the motorcycle segment. [2]

2. Segmentation, Targeting and Positioning Related to Bikes
2.1 Segment marketing
A market segment consists of a group of customers who share a similar set of needs and wants.
The

major

segmentation

variables—geographic,

demographic,

psychographic,

and

behavioral

segmentation. [3]


Geographic Segmentation (nation, states, regions, cities, density, climate, etc.)



Demographic Segmentation (age, family size, gender, income, family life cycle, occupation,
religion)



Psychographic segmentation (lifestyle, personality)



Behavioral segmentation (occasions, benefits, user status, usage rate, loyalty status, attitude
towards product) [3]
2

For bikes, demographic segmentation plays an important role. Bikes cater to a particular age group, gender
and/or income group. Depending upon the segment, the features of the bike varies. Hence, marketers
should have a good knowledge about what features to add on as per the segment they want to cater to.
2.2 Market Targeting
Once the firm has identified its market-segment opportunities, it has to decide how many and which ones to
target. Marketers are increasingly combining several variables in an effort to identify smaller, betterdefined target groups. In evaluating different market segments, the firm must look at two factors: the
segment's overall attractiveness and the company's objectives and resources. After evaluating different
segments, the company can consider five patterns of target market selection. [3]


Single – segment concentration: Through concentrated marketing, the firm gains a strong
knowledge of the segment's needs and achieves a strong market presence. [3]



Selective specialization: A firm selects a number of segments, each objectively attractive and
appropriate. [3]



Product specialization: The firm makes a certain product that it sells to several different market
segments. [3]



Market specialization: The firm concentrates on serving many needs of a particular customer group.
[3]



Full market coverage: The firm attempts to serve all customer groups with all the products they
might need. [3]

Manufacturers of bikes need to be very precise while selecting their target market. They should understand
the consumer’s demand and then accordingly place their product. The product’s features should satisfy its
target customers and should be at per with the value it promises to its target customers.
2.3 Market Positioning
Positioning is the act of designing company’s offering and image to occupy a distinctive place in the mind
of a target market. The end result of positioning is value proposition, a cogent reason why the target market
should buy the product. [4]
3

Positioning in market is very important as well as difficult. It’s making the consumers aware of your
product. Each bike must have a unique selling point which needs to be well portrayed in consumer’s mind
so that he has an additional choice in his mind.

3. Competiting Bike’s Brands
The brands that I have chosen are:


Hero MotoCorp Ltd.



Yamaha Motor Company Limited



Bajaj Auto Ltd.



TVS Motor Company



Harley Davidson

4. Hero MotoCorp Ltd

Hero MotoCorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter manufacturer based
in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India
and Honda of Japan. The company is the largest two wheeler manufacturer in India. In 2010, When Honda
decided to move out of the joint venture,[7] Hero Group bought the shares held by Honda. Subsequently, in
August 2011 the company was renamed Hero MotoCorp with a new corporate identity. Product range of
Hero MotoCorp are: [5]


CD 100



Passion



Passion Plus



CD 100 SS



CBZ



Karizma



Splendor



CD Dawn



Ambition



Splendor +



CBZ Star



Ambition 135



Impulse



Acheiver



Pleasure



Street



Hunk



Joy



Glamour



CD Deluxe
4

4.1 Market Segmentation

Hero MotoCorp 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 cater to Indian Roads.

4.2 Target Market
Hero MotoCorp follows selective specialization. It has a wide range of bikes from Rs 37,000 to Rs 95, 000.
Each product 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.

4.3 Positioning Strategy

4.3.1 Fill it. Shut it. Forget it Campaign
This campaign focused on the mileage of Hero
bikes. It says that 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.

5

4.3.2 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. This campaign
connects emotionally to the consumer as it shows the
connection of bikes to the heart of every Indian.

4.3.3 Desh ki Dharkan Advertisement Campaign
Desh ki dharkan refers to the heart beat of the
country. It symbolizes that all people in India
are emotionally attached to their country. Even
though there are a lot of cultural differences but
the entire country stands as one. This campaign
places Hero bikes as the heart beat of the entire
nation uniting everyone as a nation.

4.3.4 Event sponsorships
Event sponsorships of various cricket matches is
a positioning strategy as cricket has a huge fan
base in India. It positions itself as a strong, reliable,
affordable and greater mileage bikes.
6

4.3.5 Celebrity endorsements
Various celebrity endorsements are used as their
positioning technique. Saurav Ganguly, when he was
captain of Indian Cricket team was their brand
ambassador along with Hritik Roshan. Both these
personalities are unique in their fields. Saurav Ganguly
was the face of Indian cricket. People worshiped him.
So, through Saurav Gaunguly, Hero potrayed itself as
the heart beat of the country. Iconic figure Hritik Roshan
is known for his youth and physique. So through him Hero
tried to lure the youth.

4.3.6 Hum me hai hero campaign
This is the recent advertisement of Hero MotoCorp. This advertisement tries to prove that we all are born
super starts. We just need to focus and believe in ourselves. There is nothing impossible in this 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.

4.4 Conclusion

Hero MotoCorp is the biggest two wheeler manufacturer in the world. It has the highest market share in
India. It has successfully delivering its promise to its target customers. The aggressive market positioning
strategy that it uses places it way above its competitors. It relates itself to every Indian. It is a bike for the
Indian consumers satisfying all their needs.
7

5. Yamaha Motor Company Limited

Yamaha Motor Company Limited, is a Japanese motorized vehicle-producing company. Yamaha made its
initial foray into India in 1985. Subsequently, it entered into a 50:50 joint-venture with the Escorts Group in
1996. However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of
Yamaha Motor Co., Ltd, Japan (YMC). Presently, its product portfolio includes: [6]



VMAX (1,679cc)



Fazer (153cc)



SS125 (123cc)



MT01 (1,670cc)



FZ-S (153cc)



YBR 125 (123cc)



YZF-R1 (998cc)



FZ16 (153cc)



YBR 110 (106cc)



FZ1(998cc)



SZ-R(153cc)



Crux (106cc)



YZF-R15 version 2.0 (150cc)



SZ & SZ-X (153cc)

Yamaha caters to the market of tier I and tier II cities. It caters to males between the age group of 18 to 35.
It caters to upper middle class families. It has high pick up and speed. It is the most innovative and most
stylish bike manufacturers. Therefore, it is youth centric.

5.2 Target Market
Yamaha has single segment concentration. It is known as a racing bikes manufacturer. Speed Biking is
mainly attributed to Yamaha. Thus positioning itself as a ‘manufacturer of safety first’ bikes, as well as the
most style conscious segment. It also focuses on comfort, technology advancements. Its target customers
are the people who are sporty, thrill loving and style conscious.

8

5.3.1 YES Yamaha Advertisement
YES stands for Yamaha extended services. It tells
that now Yamaha is growing in all parts of the
country. It has good nationwide service. It can be
purchased easily. It gives good pick up, speed and
better mileage. It provides comfort. Therefore, this
advertisement portrays Yamaha as common man’s
racing bike. It conveys the message of ‘staying ahead
of tortoises’ focusing on the speed of the bike.

5.3.2 Celebrity endorsements
John Abraham is the brand ambassador for
Yamaha SZR. The hard sturdy look of the bike
can be correlated with the masculinity of John
Abraham. It thus says that it is a bike for all
masculine, speed and thrill loving people.

5.3.3 Use of songs for advertisement
Yamaha thought it is the best way to portray the efficiencies of the bikes. To enhance the advertisement and
make it appealing, the song “Ruk Jaana Nahin” has been used as the background score. The campaign is a

9

national level campaign catering to regional markets as well including south, west and east India. The
target consumer is essentially 24 yrs & above from SEC A/B and preferably male.
5.4 Conclusion
Yamaha reflects racing bikes in India. It has good pick up and speed. It is famous for its sturdy, stylish
looks and best technologies. It caters to upper middle class and middle-middle class income group,
especially adult.

6. Bajaj Auto Ltd.
Bajaj Auto Limited, is an Indian motorized vehicle-producing company. Bajaj Auto is a part of Bajaj
Group. Its founded by Jamnalal Bajaj at Rajasthan in the 1930s. Bajaj Auto is the world's third-largest
manufacturer of motorcycles and second-largest in India.Over the last decade, the company has
successfully changed its image from a scooter manufacturer to a two-wheeler manufacturer. Its product
range encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last
four years after successful introduction of a few models in the motorcycle segment.[7]



CT 100



Platina



Avenger



Discover



Eliminator



Wind 125



Caliber 115



Pulsar 150 KS



Kawasaki Ninja



Boxer

Bajaj caters to the mass consumer. It caters to middle-middle and upper middle income group of
consumers. It does not have the rural support. It still lags behind in the rural areas. It caters to aspiring
young men of the country.

6.2 Target Market
10

Bajaj follows selective specialization while targeting its consumers. Its concentrates on the youth of the
country who are technology freak. It offers a wide variety, so that it can cater to various income groups of
the country.


6.3.1

Celebrity endorsement

The very first TV Commercial of the Bajaj Discover
DTSi (125 cc at that time) in 2004 featured the Cine
Star of Asia, Jackie Chan. Jackie Chan is known for
his fast moves, action, and quick reflexes. So the
features of this bike could be easily related to
that of Jackie Chan. The bike is fast, has speed and
technology and can survive in all sorts of roads.
This advertisement convinces you to be a master who
always wins similar to Jackie Chan. It portrays the
image of the bike to be a master piece.

6.3.2

Pulsar mania

This advertisement symbolizes bike stunts of different range. The campaign beard innovative punch line of
“Definitely Male” positioning pulsar to be a masculine – looking model with an appeal to sensitive
customers. It boosts the male ego of its target customers. It makes them feel themselves as the fastest
Indian.

11

6.3.3

Discover India with the power of 1 L petrol

This advertisement positions Bajaj as a fuel efficient
bike with a greater mileage. It makes you feel that
you can travel to the most exhaustic and amazing places
in India, i.e., discover the undiscovered India. This also
gives a patriotic touch to the mindset of people making
them fell proud of their nation. You can cross crowded
12

lanes, mountain paths and explore the rich heritage if
India without any worries of oil refilling.

6.3.4

Hamara Bajaj

This was the tag line of Bajaj Auto Ltd. It positions Bajaj as your own bike. It gives the feeling of
belongingness therefore playing with the emotions of the consumers.

6.4 Conclusion
Bajaj is the second largest manufacturer of bikes in India after Hero Moto Corp. Its twin spark technology,
speed, fuel efficiency had made a favorite in Indian roads. It gives you a feeling of belongingness. It makes
you feel ‘male’ and emotionally binds you to Mother India.

7. TVS Motor Company
TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in
the world, and is the flagship company of the USD 4 billion TVS Group.

TVS Motor currently

manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. Their bike’s
range includes:


Apache RTR 180



Flame DS 125



Flame



TVS Jive



StaR City



Sports

13

The range of TVS bikes are less. It caters to the lower middle class and the middle-middle class income
groups. It caters to the youth. It segments itself on the basis of gender as well – as it caters to male.

7.2 Target market
TVS focuses on the multisegment strategy of targeting the market. It caters to youth of both lower middle
class and the middle-middle class income groups. It caters to those who are passionate about owning a
bike.
7.3.1

Celebrity endorsements

TVS endorses Sachin Tendulkar as its brand
ambassador. Sachin is a the greatest cricketer
India has ever produced. Hence people can easily
link to it as something great and good. So,
TVS positions itself as a bike that is safe,
balance and can be easily maintained.
7.3.2 Powerful and stylish
This advertisement shows that TVS bikes are
stylish, powerful, masculine and can be easily
flaunted off amongst peers. It gives you a feeling
of superiority.

14

7.4 Conclusion
The aggressive marketing strategy along with the changed approach to advertisement campaign boosted the
demand for the TVS models. They can be easily affordable, reliable and easy to maintain. TVS has
positioned itself well in the bike’s sector. It arises a passion in you to own something that you feel proud of.

8. Harley Davidson
Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufacturer. Founded in
Milwaukee,Wisconsin, during the first decade of the 20th century, it was one of two major American
motorcycle manufacturers to survive the Great Depression. The company sells heavyweight (over 750 cc)
motorcycles designed for cruising on the highway. Harley-Davidson motorcycles (popularly known as
"Harleys") have a distinctive design and exhaust note. They are especially noted for the tradition of heavy
customization that gave rise to the chopper-style of motorcycle.[8]

It caters to tier I and tier II cities. It caters to touring enthusiastic and outdoor oriented male of high income
groups between the age of 27 to 45. It caters to innovators or achievers who are self employed business
men and are ready to buy the product. They want to but it for leisure riding, planning weekend rides etc.

8.2 Target market
It caters to people who golf, who own yachts, indulge in leisure activities, hoteliers, resort owners in tourist
destinations are always looking to add new luxury items intotheir fleet for their clients to indulge into
leisure activities.

The brand positions itself as:


Masculine
15



Free spirited



Rugged



Macho



Strong



Adventurous

8.4 Conclusion
Harley Davidson is a bike of the premium category. It caters to the high end people who wish to derive
pleasure while riding them.

9. References
1. http://en.wikipedia.org/wiki/Motorcycle (assessed on 10.9.2012)
2. www.slideshare.net/vikasmisar/advertising-two-wheeler-industry-ppt/download

(assessed

on

10.9.2012)
3. Philip Kotler, Marketing Management (Pearson Education, Eleventh Edition), ch. 10.
4. Philip Kotler, Marketing Management (Pearson Education, Eleventh Edition), ch. 11.
5. http://en.wikipedia.org/wiki/Hero_MotoCorp (assessed on 10.9.2012)

16

6. http://www.yamaha-motor-india.com/about/profile/index.html (assessed on 10.9.2012)
7. http://en.wikipedia.org/wiki/Bajaj_Auto (assessed on 10.9.2012)
8. http://www.scribd.com/doc/37014406/Harley-Davidson-India-Marketing-Plan (assessed on
10.9.2012)

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Segmentation targeting and positioning of hero moto corp

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