1. MARKETING PLAN OF HERO IGNITOR BIKE
FASHION MARKETING MANAGEMENT
ASSIGNMENT II
Submitted by:
KHUSHBOO PRIYAMBADA
M. F. M. – I
Roll – 15
Submitted to:
DR. SANJEEV MALAGE
Associate Professor
NATIONAL INSTITUTE OF FASHION TECHNOLOGY, BENGALURU
14TH NOVEMBER, 2012
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2. 1. Executive Summary
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two wheelers, based in India. In 2001, the company achieved the coveted position of being the largest twowheeler manufacturing companyin India and also, the 'World No.1' two-wheeler company in terms of unit
volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till date. [1]
“Hero” is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. Hero
MotoCorp
has
three
manufacturing
facilities
based
at Dharuhera, Gurgaon in Haryana and
at Haridwar in Uttarakhand. [2]
At present, it is the market leader in the domestic motorcycle segment with around 55% of the market share.
In Q3, 2011-12, Hero MotoCorp‟s revenues at Rs. 5,983.6 Crore grew by 16.9% YoY and 3.4% QoQ,
supported by 11.3% YoY and 2.9% QoQ increase in sales volumes and 5.0% YoY and 0.5% QoQ increase
in average realizations. Hero MotoCorp‟s operating profit margins (OPM) at 15.0% in Q3, 2011-12, declined
marginally by 15 basis points (bps) QoQ but increased by 454 bps YoY. Hero MotoCorp‟s Q3, 2011-12 PAT
at Rs. 613.0 Crore grew by 42.9% YoY and 1.6% QoQ. [3]
Hero MotoCorp Ltd. faces competition from:

Yamaha Motor Company Limited

Bajaj Auto Ltd.

TVS Motor Company

Honda Motor Company Limited
Hero MotoCorp faces a cut throat competition from Bajaj Auto Ltd in 125 cc category. Bajaj Auto accounts
for nearly half the segment‟s volume i.e., 49.1% in the year 2011-12. This segment needs to be looked and
carefully from Hero MotoCorp‟s point of view. Bikes that come under 125 cc are Glamour, Ignitor, Super
Splendor and Glamour PGM F1.
Although being the global market leader, Hero MotoCorp needs to improvise the marketing plan of Ignitor.
Developing a new marketing plan for Glamour with the objective of providing world class mobility solutions
with renewed focus on increasing the sales is required. In order to understand what went wrong with the
sales of Ignitor, SWOT analysis, competitive analysis and market analysis is done.
2

3. 2. Vision
The story of Hero Honda began with a simple vision – that of a mobile and empowered India, powered by its
bikes.
The Company‟s new identity – Hero MotoCorp Ltd. – reflects its commitment towards providing sturdy and
solid world class mobility solutions with a renewed focus on steadily moving ahead and expanding the
footprint in the global arena. [1]
3. Mission
Hero MotoCorp‟s mission is to become a global enterprise fulfilling its customers‟ needs and aspirations for
mobility, solidity, sturdiness and setting benchmarks in technology, style and quality to convert its customers
into brand advocates.
The Company provides an engaging environment for its people to perform to their true potential. It aims to
continue its focus on value creation and enduring relationships with its partners. [1]
4. Situation Analysis
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. Three-fourths
of the total exports in the two wheeler automobile industry are made in the motorcycle segment. [4]
The Indian two-wheeler (2W) industry recorded sales volumes of 3.4 million units in Q3, 2011-121, a
growth of 11.0% (YoY). 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 2W 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 2W industry including favorable
demographic profile, moderate 2W penetration levels (in relation to several other emerging markets), under
3

4. developed public transport system, growing urbanization and expected strong replacement demand, besides
moderate share of financed purchases. [3]
The established players are taking a hard look at their portfolio of products and are reshuffling them to meet
the expectations of their customers. The beneficiary is of course the customer, who has an array of products
to choose from.
5. SWOT Analysis of Ignitor
Strengths

This bike is enable with ATFT (Advance tumble flow induction technology).

The Ignitor‟s headlamp and the visor are in line with Hero‟s new corporate identity, with dual tone
mirrors adding style to the new bike.

The Ignitor instruments are better, giving a modern feeling. These consist of an analogue tachometer,
digital speedometer, an odometer and a fuel gauge apart from the regular warning lamps. The legible
LCD screen also displays time.

Good palm grips are present.

The large tank imparts a muscular looke, providing large knee recesses with ample support, this along
with a wide, cushy saddle instantly making the rider feel comfortable.

The Ignitor comes with racy graphics on its tank and side panels, along with a sporty stepped seat.

Ignitor develops its peak torque 1.11kgm at 5000rpm. This is effectively felt when riding, with the
bike feeling quicker as it scythes through crowded traffic.

Its five-speed gearbox operates effortlessly in the universally accepted one-down, four-up pattern.
Gearing is short, allowing to ride the bike in higher gears at low speeds.[5]

The company has a deepely penetrated dealer network.

The company provides good after sales service through its well established dealer network.

Due to the large range of products that are available, almost the entire customer base is covered. [6]
Weaknesses

Hero depended on Honda for new products and this is a big weakness. The reason being that
technological tie-up between Hero Honda and Honda Motors of Japan has ceased to exist.

The company does not have a product catering to Rs 25,000-Rs30,000 segment, and the company
might suffer on account of this as the imported motorcycles and foreign players‟ motorcycles are
4

5. expected to cater to this particular segment of the market. This can result in the fall in the market
share of the company.

The company imports about 31% of its spare parts requirements. This makes the company vulnerable
to the import policies of the government. It also exposes them to the exchange rate risks.

The Hero Ignitor shares its engine with the Honda Stunner, a 124.7cc, single-cylinder, four-stroke
engine that generates 11bhp at 8000rpm.

There‟s a little, lockable storage space under the pillion seat, and a body colour grab-bar for pillions.

The Ignitor seating position isn‟t really aggressive, but does set its rider in a light lean into the
handlebars, which along with its nimble handling gives the new Hero a slightly sporty nature. [5]

The Ignitor‟s brakes offer a lot of feedback but somehow fall short in terms of performance.

The engine of the Ignitor does not score high in terms of mileage. Although Hero MotoCorp has
introduced the Advanced Tumble Flow Induction Technology (ATFT) on Ignitor for an efficient
burning of fuel, it fails to reflect impressive results on the mileage front. [7]
Opportunities

The motorcycle market share is about 81.5% of the total two wheeler market in India which provides
a great opportunity for the company to cash on.

There is a shift in the customer preference from 4-stroke mobikes to 2-stroke mobikes. This again
provides an excellent opportunity to Hero to leverage its market share and market leadership for
sustained profitability.

The company already has a wide customer base and there has been a shift of the preference of the
people. Most people who would earlier go for a scooter/mopednowadays prefer to go for
motorcycles. So in the future there is like to be a lot more demand for motorcycles than there was
before. Hero can capitalize on its superior distribution channel to facilitate the selling of more bikes.

New launches of middle category bikes like the Ignitor with improved mileade and better
instruments catch the middle segment and may attract some new customers.

As the Indian population consists of a large number of teenagers and young people, Hero can capture
the young market by offering various pay back schemes or it may provide better financing options. [6]
5

6. Threats

The technical collaboration with Honda ended in June 2010 and this is a serious threat as they have
been dependent on Honda for technology.

The main threats are in the form of competition from Bajaj Auto Ltd., TVS Motors,Yamaha, and
Honda Motors. These companies adopt advanced technology, so Hero must stay on its toes.

Bajaj Auto has found popularity with both its low-end and premium offerings, which have helped
chip away at Hero's dominance. In 125 cc category Bajaj is dominating Hero with 49% market share.

The second threat is from partner Honda Motors. As Honda Motors eyes high end customers through
its model, the “Unicorn”, Hero has lost some revenues as the customer base is divided.

Since Hero has no patented products, people may go for some other brand patented product.

Rising steel, rubber and plastic prices, coupled with a cut-throat market has seen more money go into
advertising and discounts. [6]
6. Market Analysis
6.1 Market Segmentation
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.
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. It potrays itself as the most efficient bike range to cater to Indian Roads.
With Ignitor, Hero MotoCorp aims to bolster its presence in the growing deluxe segment. The features of the
bike is made such that it has an edge of attracting the youths. Its aim is to cater to the age group of 18 to 24
and will be looking for executives and college going students.
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7. 6.2 Target Market
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 par with the value it promises to its target customers.
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.
With Ignitor, Hero MotoCorpis looking forward to cater to a Single – segment comprising of the youth like
college going students and young executives.
6.3 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.
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.
As Ignitor caters to executives and college going students, it has the tag line: “Jeet Ki Chingari” which
means the spark to win. At college going students are about to begin their careers and even the young
executives are at the initial stages of their careers, this is the spark that they need to have within themselves
to make the world feel a difference with their presence. It boosts the self confidence of these young people
that they are the ones who can win as they have a lot of potential or spark within them. Hence, this tagline
relates itself to the mindset of youngsters.
Hero MotoCorp also uses billboards and signboards at major business districts and major routes. It also
advertises aggressively through newspaper and TV advertisements to improve consumer recall and these
7

8. advertisements are also very prevalent. At the dealership level, the customers are sent promotional material
in the form of leaflets to initiate further contact and increase customer awareness about Ignitor bike.
Hero MotoCorp has also signed Ranbir Kapoor, the famous bollywood actor as the brand ambassador for
Ignitor. Many young males adore him as he reached to fame at a very early stage of his career. He has made
the world recognize him as a very versatile actor who has the potential to do any sort of movie in a different
way. As the youths today love challenging tasks and prove their worth, this bike can specifically relate to
them.
7. Competitive Analysis
Hero MotoCorp faces a huge competition from Bajaj Discover125ST and Honda Stunner. From the time
the Bajaj Discover was launched in 2004, it has been well appreciated by the commuter janata. Hero
MotoCorp on the other hand has started building its new identity after the split with Honda. With Ignitor,
Hero wants to capitalise on the 125cc segment that is being dominated by Bajaj Discover 125ST.
7.1 Design
In Discover 125ST, headlight and the wide fairing give the bike an aggressive look and the sharp lines on
the front mudguard add more character. The chrome plated heat shield and the end can cap finished in silver
compliment the matte black exhaust. Moving away from the standard six-spoke alloys, the 125ST‟s fivespoke spider web mag wheels endow the motorcycle with a fresh, youthful appeal. [7]
The quarter fairing‟s sharp lines gel with the tank, and the dark, curvy windscreen and imitation air intakes
lend the Ignitor a younger and much more aggressive stance. The matte black exhaust and alloys enhance the
appeal of the red shock absorbers. Where the Ignitor looks better over the Discover due to its digital
speedometer with a trip meter and a first in class clock. [7]
7.2 Performing Potential
The 4-valve twin-spark 124.6cc engine of the Discover puts forth an impressive 13PS @ 9000rpm and
10.78Nm of torque @ 7000rpm. The twin-spark plug set-up ensures a more proficient burning of the air-fuel
mixture resulting in better efficiency without compromising power. [7]
8

9. The Ignitor sports the same 124.7cc mill producing 11.15PS @ 8000rpm and 11Nm of torque at 5000rpm.
Hence, Discover has a better performing potential. [7]
7.3 Handling and Ride Quality
Both bikes feel pretty much on par in terms of handling and ride quality. Although the front end of the
Discover feels light it does not take away any points from its maneuverability in intense city traffic. The
Ignitor also wears the same rubber and suffers from the same ailment. As far as handling is concerned, the
Ignitor‟s suspension is slightly on the stiff side, it might be a cause for discomfort. [7]
7.4 Mileage
Which brings us to the perennial 'Kitna deti hai' quandary. Although the 125ST produces considerably more
horsepower than its rivals, it givea a mileage of 66kmpl.
The engine of the Ignitor does not score high in terms of mileage. Although Hero MotoCorp has introduced
the Advanced Tumble Flow Induction Technology (ATFT) on the new Ignitor for an efficient burning of
fuel, it fails to reflect impressive results on the mileage front.The rather short-geared Ignitor saw 59kmpl in
the
city,
while
on
the
highway
it
stretched
to
70kmpl.[7]
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10. 8 Marketing Strategy
8.1Product
8.1.1Design and Features[8]
Hero MotoCorp has given the Ignitor a noticeably individualistic identity. The quarter-fairing has been
redesigned to incorporate pseudo-air intakes as well as neatly drawn angular lines that present the Ignitor
with a much more aggressive stance. Complimenting the edgy lines of the fairing upfront is an equally sharp
windscreen flaunting dark tint and helping the Ignitor stomp its belligerent stance. The quarter fairing‟s
sharp lines gel with the tank, and the dark, curvy windscreen and imitation air intakes lend the Ignitor a
younger and much more aggressive stance. The matte black exhaust and alloys enhance the appeal of the red
shock absorbers. Completing the look are body-coloured rear view mirrors and body-coloured grab-rail
while the centre panels are finished in matte-black.
New Generation 125 cc ATFT engine
Striking trapezoidal headlight
Digital-Analog Combo Meter Console
Stylish Split Seat
Dazzling Tail Light
Dual Tone Rear View Mirrors
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11. Classy Front Cowl
Adjustable Rear Shockers
Body-coloured Rear Grip
8.1.2 Technical Specifications[8]
Engine
Type
Air cooled , 4 - stroke single cylinder OHC
Displacement
124.7 cc
Max. Power
8.20 kW ( 11 bhp ) @ 8000 rpm
Max. Torque
11 N-m @ 5000 rpm
Bore x Stroke
52.4 x 57.8 mm
Carburettor
CV Type
Compression
Ratio
9.2 :1
Starting
Self Start / Kick Start
Ignition
Digital CDI
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12. Transmission & Chassis
Clutch
Multiplate wet
Gear box
5 Speed constant mesh
Chassis Type
Tubular , Diamond Type
Suspension
Telescopic Hydraulic Shock Absorbers
Front
Brakes
Front Brake
Dia 240 mm Disc - Non Asbestos type
Rear Brake
Internal expanding shoe type ( 130 mm ) - Non Asbestos type
Wheels & Tyres
Rim Size Rear
17 x 2.15, Cast Wheel
Tyre Size Front
80/100 x 17 - M/C 46 P ( Tubeless Tyre )
Tyre Size Rear
100/90 x 17 - M/C 55P ( Tubeless Tyre )
Electricals
Battery
12 V - 3 Ah , MF Battery
Head Light
35 W / 35 W - Halogen Bulb ( Multi-Reflector )
Tail Stop Lamp
5 W / 21 W ( Multi-Reflector )
Turn Signal Lamp 10 W x 4 nos ( Multi- Reflector )
Dimensions
Length
2010 mm
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13. Width
710 mm
Height
1095 mm
Wheelbase
1270 mm
Ground Clearance 175 mm
129 kg
Kerb Weight
8.1.3 Color
[8]
White
Red
Blue
Black
8.2 Price
The price of Hero Ignitor is Rs 55, 900. This is in competition with Bajaj Discover whose price is Rs
55,5000. And also its price is in competition with Honda Stunner, whose price is Rs 56,000. Hence, in terms
of price Hero Ignitor is competitive.
8.3 Promotion
Hero MotoCorp should follow various strategies for sales promotion of Ignitor. Some of the methods
involved at the Dealer level are:

Test Drives for prospective customers.

Sponsorship Schemes for customers in association with HDFC and ICICI banks.

Advertisement in showrooms on a company-dealer 50-50 basis partnership.

Mobile Vans in remote areas for customer services i.e. after sales service.
13

14. 
Periodic rural fairs and to showcase the company models for prospective buyers.

Musical Nights conducted at important cities with a view to promote products.
Hero MotoCorp also should use billboards and signboards at major business districts and major routes. It
should also advertise aggressively through newspaper and TV advertisements to improve consumer recall
and these advertisements are also very prevalent. At the dealership level, the customers should be sent
promotional material in the form of leaflets to initiate further contact and increase customer awareness about
Ignitor bike.
Hero MotoCorp has also signed Ranbir Kapoor, the famous bollywood actor as the brand ambassador for
Ignitor. Many young males adore him as he reached to fame at a very early stage of his career. He has made
the world recognize him as a very versatile actor who has the potential to do any sort of movie in a different
way. As the youths today love challenging tasks and prove their worth, this bike can specifically relate to
them.
At Hero, „green‟ is more than a business imperative. They believe in sustainability. They have started rain
water harvesting and green vendor development program. They are taking lot of measures to reduce
pollution. It is reducing carbon footprints and is trying to be environment friendly. This is also giving them
an edge over other competitive brands as consumers now as becoming more conscious towards a cleaner and
greener environment.
Hero also used „Hum Main Hain Hero‟ that was unleashed as a part of the brand and corporate makeover. In
a short span of time, the campaign captured the imagination of the entire nation – with its unique customerproduced videos and themes. This song was sung by A. R. Rahman who is the national heart throb and thus
appealing to a majority.
In order to promote Ignitor, Hero should also take the help of social networking sites such as facebook. They
should form a group for Ignitor and create awareness about it. Hence, it would increase awareness amongst
people for Ignitor.
8.4 Place
Hero owns its own showroom in majority of cities in India and also has a deeply penetrated dealer network.
As Ignitor caters to deluxe segment, it should be available in right quantities in showrooms of tier I,II, III
cities as the disposable income of tier II and III cities are rising and many youth in these cities are aspired to
14

15. achieve heights. These cities are potential targets so, a smooth supply chain should be developed in order to
meet the customer demand. A proper showroom in the correct location should be available so that its easy for
the customers to locate it.
8.5 Public Relations Strategy
8.5.1 Automated Workshops
H e r o s h o u l d p r o vi de A u t o m a t e d W o r k sh o p s p r o vi d i n g s e r vi c e t o t h ei r Ign i t o r customers
by using latest service technology. Automated Workshops have standard layout, hydro electric motor cycle
lifts, dust free engine rooms and use pneumatic tools and equipment to ensure quality repair in customers
motorcycle. The workshop environment and usage of pneumatic tools increases mechanics efficiency
and their motivation to provide quality service. The layouts should be standardized to ensure that there is
a transparency of service. The customers should be able to view their motorcycle repair while sitting
comfortably watching T V o r r e l a x i n g i n t h e c u s t o m e r l o u n ge .
8.5.2 Training
Hero
should
c o nd u c t
r e gu l a r
Technical
Training
P r o gr a m m e s
for
Dealers
w o r k s h o p s t a f f t o ke e p t h e m updated and refreshed about the latest price technology, product
technical details as well as service and repair procedures to handle customer‟s motorcycle with utmost
care as well as to provide them the service quality of highest order. Hero has six (06) training centers across
the country. There are 05 zonal training centers of Pune, Bangalore, Calcutta, Chennai and Delhi to
take care of technical training requirements of d e a l e r s i n e a c h z o n e a s w e l l as l o c a l
t e c h n i c i a n s . T h e r e i s a N a t i o n al T r a i ni ng C e n t e r a t Dharuhera to take care of all advanced
level technical programmes for our dealers staff and our in house service engineers. Hero Honda
keeps an organizing Dealers Mechanics Contest at Zonal Level and National Level to develop competitive
spirit among mechanics as well as in the process to update their skills and product knowledge.
8.5.3 Customer Service
Hero should take on new initiatives to maintain its leadership on service as well as enhance
customer satisfaction level on an ongoing basis. Few new initiatives related to customer service that hero
should undertake are as follows:
15

16. 
Service Advisors at Dealerships

Service Plus Scheme for customers

Pre Paid Reply Cards

Automated Mobile Service Workshops

Mega Millennium Camps

On the Job Training Programmes

Local Mechanics Training
8.5.4 Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)
Hero is also launching very soon a novel concept and a very major initiative – Safety at their S4 Dealerships
Safet y Education to motorcycle customers shall be an integral part of Hero's
motorcycle delivery process at the showroom. Customers shall be educated on Safe Riding
techniques through various audio visual aids. Safety Instructors shall be imparting riding skills
as well as education to the customers. Dealers shall also conduct a major programme in their respective
towns with the association of local traffic police on a regular basis on safety education and correct riding
techniques.
9. References
1. www.heromotocorp.com (assessed on 12.11.2012)
2. http://en.wikipedia.org/wiki/Hero_MotoCorp(assessed on 12.11.2012)
3. http://www.icra.in/Files/ticker/Indian%202W%20Industry,%20Update,%20Feb%202012.pdf(assesse
d on 12.11.2012)
4. www.slideshare.net/vikasmisar/advertising-two-wheeler-industry-ppt/download(assessed
on
12.11.2012)
5. http://www.autocarindia.com/Review/309558,hero-ignitor-review-test-ride.aspx
(assessed
on
12.11.2012)
6. http://www.scribd.com/doc/37104147/Marketing-Mangement-Project-Hero-Honda
(assessed
on
12.11.2012)
7. http://www.zigwheels.com/reviews-advice/shootouts/bajaj-discover-125st-vs-hero-ignitorcomparison/14578/4 (assessed on 12.11.2012)
8. http://www.heromotocorp.com/en-in/ignitor# (assessed on 12.11.2012)
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