Target Market for Hero Impulse

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TARGET MARKET FOR NEW HERO IMPLUSE BIKE

Table of Contents:

Summary:3

Overview of industry:3

Profile of the organization:10

Problems of the organization11

SWOT analysis of the organization11

Objective of the study:12

Scope of the Study:12

Managerial usefulness of Study:12

Limitations of the study12

Literature Review13

Methodology and Research Design14

Data Analysis18

Findings:20

Conclusions20

Appendices:21

References & Bibliography21

Summary:

The target market for Hero Moto Corp. was to be analyzed and results were to be interpreted. For this descriptive research design was being utilized by doing this the presentation of important problem that is the target market was found by the use of surveys regarding the customer differentiation which actually had the basis of the buying ability of the consumer in analysis. Also it helps to analyze the unknown areas in the research by discovering the target market on basis of product variables. The survey was done so that the consumers were allocated various classes according to their spending and then analysis was done according to the price of the bike. Also we should concentrate on the factors which impact the demand for the bike.

Overview of industry:

The Indian two-wheeler industry recorded sales volumes of 3.4 million units in Quarter 3, 2011-121, a growth of 11.0% (Year over Year) but flat (Quarter over Quarter). Although the YoY volume growth of the industry remained in double digits, the pace of growth during the last quarter was at its lowest gear in the last three years. The deceleration in growth was contributed mainly by the motorcycles segment which grew at a much lower rate of 9.2% (YoY) in Q3, 2011-12; even as the scooters segment continued to post 20%+ (YoY) expansion. Overall, ICRA expects the domestic two wheeler industry to report a volume growth of ~13% in 2011-12 as we expect growth to fade further in Q4, 2011-122 due to base effect.

In an environment where the northward movement of inflation, fuel prices and interest rates has been the nemesis of the Indian automobile industry at large, the two wheeler industry has been the most resilient reflected in its healthy volume growth of 15.0% (YoY) in 9m, 2011-12. The growth has been supported by various structural positives associated with the domestic two wheeler industry including favourable demographic profile, moderate two wheeler penetration levels (in relation to several other emerging markets), under developed public transport system, growing urbanization and expected strong replacement demand, besides moderate share of financed purchases. ICRA (Internet Content Rating Association) expects these strengths, coupled with the Original Equipment Manufacturer’s thrust on exports, to aid the two wheeler industry to report a volume Compund Annual Growth Rate of 10-12% over the medium term to reach a size of 21-23 million units (domestic + exports) by 2015-16.

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1. 1 Refers to domestic sales volumes

2. 2 The domestic two wheeler industry grew by 14.8% (YoY) in 10m, 2011-12

TREND IN QUARTERLY SALES VOLUMES AND MARKET SHARE IN MOTORCYCLES

Sales Volumes Analysis - Motorcycles

The domestic motorcycles segment recorded a volume growth of 9.2% YoY in Q3, 2011-12 and as has been the trend over the last several quarters, the >125cc segment of motorcycles grew much faster than the 75-125cc segment. With this, the contribution of the >125 cc segment to the total motorcycles segment increased from 26% in 2009-10 to 29% in 9m, 2011- 12.

Market Share Trends

The Indian motorcycles segment continues to be dominated by Hero MotoCorp which has maintained its market share at over 55% in the domestic motorcycles segment over the last five quarters (Refer Chart 2). The top three players accounted for 89.5% of the...
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