Essay About Hero Splendoranalysis Of Marketing Strategy And Turn Leads

Marketing Plan for Hero Splendor
[pic 1]HERO SPLENDORANALYSIS OF MARKETING STRATEGY AND PLANNING[pic 2][pic 3][pic 4]CONTENT        TOPIC                                                                       PAGE No.SITUATIONAL ANALYSIS                                                  2BRAND HISTORY                                                          5INFERENCES FROM MARKETING CAMPAIGNS                          5MARKETING PLAN COMPARISONS                                          6MARKETING OBJECTIVES                                                 10MARKETING STRATEGIES                                                 10SWOT ANALYSIS                                                         12MARKET ACTION PROGRAM                                         13IMPLEMENTATION                                                         14REFERENCES                                                                 16Analysis of:Key factors -that may affect the demand and supply of Hero Splendor in 2015-16  compared  to the previous yearComments on Factors’ impact on the demand/ supply as well as the extent of impact. CompanyTechnological InvestmentOverseas and Domestic Expansion PlansOptimization of Fixed costAmbitious Sales GoalsThe company after its split with Honda in 2010, is investing heavily in developing technology as a core competency. As an initiative in this front, an upgraded version of Splendor is going to be launched in end of 2015. Also, product variants with superior technology like Splendor iSmart have already been launched.New plants have been established in Colombia and Bangladesh to increase visibility and sales overseas. Future investment is expected in Argentina. Also, there are ongoing trials for ethanol based-fuel in Brazil. On the domestic front, Gujarat plant will start in 3rd quarter of 2015 and will contribute to supply by 1.8 million units pr year. There are proposals to open a new plant in South India as well to meet expected increase in demands.Hero MotoCorp has initiated margin improvement projects in Manesar to optimize fixed costs. Hero MotoCorp have targeted an annual sales of 12 Million units by 2020, with Splendor being the major sales driver. It will lead to the annual turnover of 60000 Crores INR.CustomersDisposable IncomeIncrease in Middle class populationPurchasing Power ParityIncrease in disposable income (expected rise of 100% by 2020) is crucial to consumer confidence making them willing to buy a new vehicle.India’s middle class population, which is essentially Splendor’s target segment, will reach a figure of 267 million in the next 5 years. PPP significantly increase from 4.7% to 6.1% by end of 2015CompetitionMajor Competitors are Honda Activa, Bajaj Discover and Honda CB ShineHonda Activa is a major competitor in terms of market volume. Its sales volume was 2178227 in 2014 which is an increase by 30.1% as compared to 11.1% of Hero Splendor whose sales volume was 2517189. This depicts an increase in interest among consumers towards non-geared vehicles as positioned by Honda Activa.CollaboratorsDecreasing cost of raw materialsExtensive distribution network in Rural IndiaRaw materials contribute to 47% percent of vehicle costs. Major contributor to raw material is steel whose costs are declining at 20% CAGR. This in turn leads to lower manufacturing costs, thereby increasing the margins.Currently, the market penetration in rural India of two wheeler segment is 211 per thousand. The extensive distribution network chain in small towns to reach the masses will help in increasing sales in rural India.Context/Macro EnvironmentAccess to CreditOil Fuel PricesRebound in Capital goods productionFalling interest rates (Decline in repo rate by 25 bps) has eased repayment and positively impacted willingness to take out finances for a new vehicle.Low Oil prices and strong rupee develop huge market potential for vehicles. (The world oil prices have declined by 55.5% in the last year)Increasing spending in government infrastructure projects (like Make in India) has given a boost to the manufacturing sector especially OEMs.