There is no dearth of tools and techniques when it comes to improving business performance by incorporating various marketing strategies, but what to choose from the millions of strategies. Will they really work for your business? What's critical, and what's optional? I want to tell you about real marketing strategies, which are successfully employed by many companies and they reaped phenomenal benefits out of it. Let’s take case of Hero Honda, as a company it is continuously striving for synergy between technology, systems and human resources to provide products and services, that can meet the quality, performance and price aspirations of their customers. These are big words ok, they want to achieve this goal while maintaining highest standards of ethics, societal responsibilities, constantly innovating products and processes, and developing teams that keep the momentum going to take the company to the next level of excellence. But what customers really want? Have they figured out well? Yes, they say that ‘Customer will favor those products that offer the most quality, performance, innovative features and ROI. ROI is return on investment, what it means here is simply value for the money that these bike lover will spend to purchase it. No doubt, we are about to analyze a company which is No. 1 in its business. Let’s analyze their success from classical marketing strategies point of view. Let’s see their product mix. Since Hero Honda is only in one business i.e. manufacturing and selling of Motorcycles its product depth contains only Motorcycles.
Product Mix
They have right products for every segment of customer. Based on income level of customers, user choice for color and features, Hero Honda has perfect portfolio to serve its customer.
– Width: Only One (Motorcycles)
– Length: About 10 (CD 100, CD 100SS, JOY, DAWN, SPLENDOR, SPLENDOR+, PASSION +, AMBITION 135, CBZ, KARIZMA…)
– Depth: In case of bikes the depth constitutes of the different colors







Entry level Bikes









Mid Level Price Bikes









High-end Bike

It is surprising to include the warranties as product features but if you see all the motorbike manufacturers, it’s an important selling proposition its customers.
Warranties
• All Hero Honda motorcycles are warranted for a period of 2 years or 30000 KMs from the date of purchase, whichever is earlier.
• Six free services are provided, which should be availed within a year of purchase of the motorcycle.
Hero Honda fared better on warranties terms in comparison to other motorbike manufacturers.
Many companies fail to differentiate between demand and want of certain product. Let’s take the case of demand for bike. For entry level customer who falls between low income groups (LIG) to mid income group (MIG) there is huge want of bikes having different features and colors. But, Hero Honda was able to turn the want into demand with innovative financing schemes. It has created huge market for them. Let’s see how Hero-Honda is able to do so. For the customer who can’t afford to own a bike with all the down payment at the time of purchase, they are able to arrange financer for almost 85% of purchase amount. These financers are not run of mill shops but well known national banks. And they are providing loans at prevailing interest rate and terms & conditions contrary to other financier who charge exorbitantly high interest rate.
Let’s see their Credit Terms & Finance
• Down payment varies according to bike model e.g. 15% for CD 100 for the residents of for example Gandhinagar and Ahmedabad.
• While for other customers outside Gandhinagar and Ahmedabad can avail the same with 30% down payment on model CD 100.
• Finance schemes available from HDFC bank, ICICI bank and Centurion bank with various installment schemes and payback periods.
Then let’s see their placing strategies. It is another important aspect of marketing which tries to address the issue of making your product available at the right place in right time and right way. Well, as you know that depending upon product characteristics there are need for channel partner in order to reach to customer or serve the customer. Since the company we are analyzing are in the business of a capital intensive product then it’s required that there should be distribution channels. Well Hero Honda scores 10 out of 10 in building perfect distribution network and managing such huge network of channel partners.
Distribution Channels
– Hero Honda has a vast network of more than 1000 committed dealers and more than 1200 service points spread all across the country.
Reaching Out With Mobile Workshops
– Given the country’s one billion population and large area, it is impractical for Hero Honda to establish sales and maintenance outlets in every town. So it has come out with the fresh idea of mobile service workshops: a complete workshop incorporated into trucks that travel predetermined routes, visiting small towns and villages where existing hero customers reside. These workshops also double as no of sales outlets and spare part distributors goes up. This concept has been hugely popular with the customers as well as the distributors.
Promotion strategies:
It’s not sufficient to have right product at right price and right place. Customer has to know that you are actually giving them solution for their problems or need. So to increase awareness about the company and its product, they have done following things extra over usual direct print and media advertisements. The creative account of all Hero Honda brands rests with HTA (Hindustan Thompson Associates). Apart from concentrating on mainstream Splendor-- the world's largest selling bike-- and upscale Brand CBZ and Karizma, Hero Honda has identified ``soft areas'' like services and spares parts for the purpose of intense communication to allure bike riders.
Hero Honda Passport Scheme
– The Hero Honda Passport programme is a ' Customer Relationship Programme‘. Upon enrolling for the programme the customer obtains a Hero Honda Passport, with the passport programme, each time a Hero Honda customer visits a service centre, he gets some points. These points entail him to a host of benefits, privileges and exclusive rewards. He also become eligible for the Hero Honda winner of the Monthly draw, which could win him a Hero Honda Splendor, or a cash prize of Rs. 40000. The company has secured over 1 million members in the last three years with the Passport Programme. This number is still growing at high rate.
Some of the immediate benefits are:
– One -year free Accident Insurance cover worth Rs. 1 lakh.
– Exclusive rewards and surprise gifts from Hero Honda Motors Limited.
– Special service discounts at all authorised Hero Honda dealerships / service centers.
– Special discounts on the purchase of spares.
– Invitation to events such as movie shows, musical nights and carnivals.
– Exclusive discount offers from other brands of your interest.
– Regular information and tips on motorcycle maintenance.
Co-branded credit card
• Another customer service initiative to be launched jointly by Hero Honda and State Bank of India is a co-branded credit card. The SBI Cards & Payment Services (SBI Card) is teamed up with Hero Honda Motors to offer the Hero Honda SBI Card, the first card for the two-wheeler industry in India. SBI card is said to be India's No 1 Visa card-issuer with over 11 lakh cards issued. The co-branded card is designed to strengthen Hero Honda's Passport Programme.
Promotion through Sports & Entertainment
– In sports promotions, Hero Honda will stick to cricket following title sponsorship of the World Cup , it has signed a three-year contract for Hero-Honda-Salve Challenger Trophy and golf ,it is known as Hero-Honda Masters Golf. Hero Honda is currently sponsoring the India-Pak Friendship series. I cannot forget the Hero Cup. A most loved triangular series in the history of cricket.
– After a successful association with movies like “Pyar Mein Kabhi Kabhi” starring Dino Morea and Rinkie khanna-- Hero Honda is in the process of identifying title sponsorships of youth-centric movies.
Celebrity Endorsements
– Hero Honda has signed up Indian Cricket Team captain “Saurav Ganguly” and actor “Hrithik Roshan” to promote its brand. It recently signed on four more cricket stars— Virender Sehwag, Mohammad Kaif, Yuvraj Singh and Zaheer Khan— as its brand ambassador.
Promotion through social causes
– Hero Honda is also look at social areas - like civic issues, association with NGOs, and contribution to greener causes-- for corporate communications.
– The corporate campaign is being largely complemented by on-ground initiatives under the umbrella brand of ``We Care'', incorporating activities in the arena of community services, safety and services programs, tree-plantations and environmental-friendly projects.




Safety Riding Programme
– In line with Honda's worldwide, safety riding programme, Hero Honda is undertaking the riding programs. Where trained personnel are giving riding tips to bike owners. It encompasses to over 100 dealerships across 90 towns.



I love their marketing strategies because these are practical and targeted to what customer really needs. And hence these are real marketing strategies which should be course of any companies who wants to grow its business.


This work is licensed under a Creative Commons Attribution 3.0 Unported License,Author,2009.