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What is Hero Honda not doing right and Bajaj is?

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  • What is Hero Honda not doing right and Bajaj is?

    What is Hero Honda not doing right and Bajaj is?

    Source: Livemint.Com


    lower growth for Passion and relatively lower margins for Passion Pro, besides a higher marketing spendFor Hero Honda, erosion in profit share has been much higher compared to marginal loss in market share. From a high of 74% of total operating profits (cumulative, top 4) in financial year 2009, its share declined to 51% in the nine months of the current fiscal. We expect domestic motorcycle operating margins in the nine months of this fiscal to be about 13% versus 17% peak in the last fiscal,Hero Honda has been unable to match the success of Bajaj DiscoverYes, Bajaj brands have scored better than Hero Honda because they are newer brands. I have some concern on the split between Hero and Honda, but it is not significant. The split will not alter business for Hero products, it will mean different branding but also a different cost structure. What I want to se is how much R&D Hero is able to do on its own,




  • #2
    News approved.
    (Been There Done That) x 3.25

    Comment


    • #3
      Putting it in understandable terms for the biker, i think what they're trying to tell is that HH ought to launch anther new niche bike like the Original CBZ or the Karizma to survive post 2014.. Else, it can at the best trick rural people into buying their ancient relics.. Hoping that Hero will survive and grow up as a great Indian brand with innovative motorcycles unlike its past where its been under Honda's Shadow.. As for Bajaj, they also have a leading edge because of extremely competitive rates from all vendors compared to HH..
      sigpic
      My IBA SS delayed.. Damn.. ;-(

      Comment


      • #4
        Hero Honda's Strategy

        Hi
        Hero Honda did visit our campus and a few uncomfortable questions were put to them regarding their future launches etc. They did not have any concrete plans for anything niche. However all said and done they are a volume based player and to them it does not matter if a few folks in the cities dislike their bikes. They have a really huge base amongst the rural populace which only seems to be getting larger. At the risk of brickbats in this forum someone from rural India is never going to touch a Ninja even if he had the money.

        Comment


        • #5
          HH is definitely doing something see this
          New Brand Identity--

          Wolff Olins to create new brand identity for Hero - The Economic Times
          Last edited by Satyamzma; 03-14-2011, 12:47 PM.
          Don't Honk Unnecessarily

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          • #6
            And not only that HH are losing their share in rural population too due to inceease in Discover sales....
            Men who still dream of being a pilot or an astronaut are yet to ride a motorcycle.

            Comment


            • #7
              Its true that in towns, people trust HH blindly. However, these towns are fast converting into cities. Also, the split of Hero and Honda will definitely get noticed by the town people. And to be frank, Hero does not have any working brand other than Splendor and Passion. Brands like Glamour, Achiever, Super Splendor n all have failed. Hunk and CBZ are there in the premium segment (premium for town people) but even they have a small share.

              If Hero needs to sustain itself, it needs to create brand. And that will not happen overnight. Discover brand was established only after years of failure. Lets hope Hero has something in store. They must know that Splendor and Passion won't last for another century.

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              • #8
                the point is .......you need to improve on a continuos basis.....and come up with better and better VFM products........not just new body on age old engines.
                sigpic

                Tyre Sizes _ Spark Plugs

                Headlight Focus _ Fork Oils

                All India xBhp Couple Riders Thread

                Ashtavinayak + Shirdi
                Purandar
                Raigad
                Dapoli
                Aurangabad
                Kaas Plateu & Thoseghar Waterfalls
                Purandar

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                • #9
                  hh needs a good r&d department

                  Comment


                  • #10
                    If Bajaj improve their quality, it will be unbeatable. Nothing else matters. Their design and styling is quite good if not as good as foreign companies.

                    Comment


                    • #11
                      I have a feeling that the Hero and Honda split has pushed the Hero group to the same era as Bajaj before the first Pulsar was launched.

                      Hero group will have to develop their RnD department at the pace of light if they have to sustain the cut-throat competition..

                      I see Bajaj's shares growing in the coming 2 years...

                      Investors, invest in Bajaj Auto
                      Signals which are timed for 50 Kmph are also timed for 100 Kmph :)

                      Comment


                      • #12
                        Originally posted by cmahajan View Post
                        I have a feeling that the Hero and Honda split has pushed the Hero group to the same era as Bajaj before the first Pulsar was launched.

                        Hero group will have to develop their RnD department at the pace of light if they have to sustain the cut-throat competition..

                        I see Bajaj's shares growing in the coming 2 years...

                        Investors, invest in Bajaj Auto
                        very well said bro.............

                        becuase i don't think there even exists an R&D dept. in HH.
                        sigpic

                        Tyre Sizes _ Spark Plugs

                        Headlight Focus _ Fork Oils

                        All India xBhp Couple Riders Thread

                        Ashtavinayak + Shirdi
                        Purandar
                        Raigad
                        Dapoli
                        Aurangabad
                        Kaas Plateu & Thoseghar Waterfalls
                        Purandar

                        Comment


                        • #13
                          Hero Honda has always been a volume player. It is no porsche or Ferrari. Over the years it provided reliable two wheel transport to anyone and everyone who could not afford the car. Hero Honda never made bikes for bikers no matter what their advertising says. Fill it Shut it Forget it. About money rather than biking. And it was a smart thing to do in those days. But the trouble is they never changed. But the people have. Please understand the youth today is a lot different from the youth in 80s. They can sacrifice a bit of mileage for a bit more of style. And style not as in ++ but genuine good design. People are more aspirational these days. Also the market has matured a lot. In the 80s there was a lot of gap between a bike and a car. Now Nano is available at 1.5 lakhs or some such. Loans are easily available. Yes it will take another 10 years when like the west where only people who want to ride will buy bikes and till then Hero can still do well but it has to change how people perceive it as. What has worked wonders for them till now is their anathema now. Fill it shut it forget it doesn't work as well as fill it shut it revv it. It will be interesting to watch how the Munjals will respond it. My advice get a younger Munjal in charge a la Rajiv Bajaj the oldies are incapable of understanding the youth and right now it is the market of youth.

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                          • #14
                            don't worry Hero group is busy making a 400cc Disel bike..
                            Don't Honk Unnecessarily

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                            • #15
                              Hero honda is the number1 and will be,even after they split with honda in 2014!!
                              Apache RTR 180 2011 | Honda Activa 2010 | CBZ Xtreme 2010 (1 month) |Apache 160 FI 2009-2010
                              Bajaj Kristal 2007-2011
                              ----------------------------------------------

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