How Hero Motocorp Dominated India’s 2-Wheeler Industry with a Fantastic Marketing Strategy!

   
•     Team Digitofy
   
•     February 18, 2024

Hero MotoCorp, formerly known as Hero Honda, is an Indian multinational motorcycle and scooter manufacturer based in New Delhi. Since parting ways with Honda in 2010, Hero MotoCorp has become the world’s largest two-wheeler manufacturer by volume. The company sells over 75 lakh two-wheelers every year across domestic and international markets.

Know More About Hero MotoCorp 

Hero MotoCorp has manufacturing facilities across India, Colombia and Bangladesh. Some of its popular motorcycle models include the Splendor, Passion, Glamour, Xtreme, Pleasure scooters and Karizma, Xpulse adventure bikes. It has consistently held over 40% market share in the Indian two-wheeler space.

What’s New in Hero’s List? 

In recent years, Hero MotoCorp has made strategic investments in electric two-wheeler maker Ather Energy. It has also forged partnerships with Erik Buell Racing and Engines Engineering to develop new products. The company aims to launch its first electric model code-named HE-01 by March 2022.

Getting to Know the Rider 

Hero targets a wide demographic – from college students and young professionals looking for a convenient city commute vehicle to rural customers needing robust and affordable transportation for their livelihoods. Most riders are cost-conscious but also aspirational, looking for style and performance without breaking the bank.

Marketing Mix 

Product Strategy

With over 20 models across various segments, Hero MotoCorp has one of the widest product portfolios in the Indian two-wheeler market. There are basic commuter motorcycles like the HF Deluxe and Splendor iSmart targeting value-conscious buyers in small towns and rural areas. These no-frills bikes promise reliability, fuel efficiency and low maintenance costs.

In the deluxe segment, models like the Glamour, Passion Pro and Super Splendor offer better styling and features like electric start and alloy wheels while retaining affordability. Then there are premium motorcycles like the Xpulse, Xtreme 160R and XPulse 200T which boast cutting edge tech and performance to appeal to young and aspirational riders.

Hero also enters niche spaces unseen before for an Indian manufacturer. Take the Karizma series which showed Hero’s racing DNA for the first time. The new Xpulse 200 and Hunk pack real off-roading credentials positioning Hero well against rivals.

And it’s not just motorcycles, Hero has gained a strong foothold in the scooter space with popular models like the Destini, Pleasure and Maestro Edge. Plus there are alternate fuel powered offerings like the electric and CNG variants building the foundation for a greener future.

Additionally, Hero has emerged as one of India’s major exporters of two-wheelers thanks to customised product development for international markets. For example, the Ecosport and Eco Deluxe bikes are specially engineered for African conditions while the Sprint and Ignitor meet regulations and rider needs in Latin American regions.

Pricing Strategy

In line with its mass market positioning, Hero mainly competes on value pricing. Barring a few flagship and premium bikes, most Hero motorcycles and scooters range between INR 40,000 to INR 80,000 making them the most affordable options for price-sensitive buyers.

The breadth of range allows customers to upgrade within the Hero family instead of having to switch to a more aspirational brand. This strategy has allowed Hero to protect – and even grow – its market share year after year. Introducing more premium models via dedicated sales channels also opens scope for uptrading existing customers.

Distribution Strategy

Hero’s undisputed edge lies in its widespread reach across the length and breadth of India. With over 7000 customer touch points encompassing dealerships, service centers and retail outlets, Hero two-wheelers are available even in remote villages where competition is scarce.

This deep penetration is the result of judicious investments over decades to set up dedicated dealerships in small towns and rural centers. As a result, today over 40% of Hero’s volumes come from these regions making it the category leader here by a huge margin. No competitor comes close to matching this vast network built assiduously by Hero over the years.

Promotions Strategy

Hero MotoCorp signs up popular celebrities to give its advertising a fresh face periodically. The latest brand ambassador is Ranbir Kapoor who, with his youthful appeal, energises the brand image. Hero is also smartly expanding its appeal among kids via associations with beloved characters like Chhota Bheem.

The long running ‘Hum Main Hai Hero’ anthem has become a familiar audio signature that evokes loyalty and pride among existing riders while also attracting new ones. Sponsoring various sports leagues especially cricket and field hockey allows Hero to peg its youthful and energetic brand image.

Gearing Up Against Rivals 

Hero faces competition from both Indian and global original equipment manufacturers. Fellow Indian companies like Bajaj Auto, TVS Motor Company and Honda 2Wheelers have significant market shares across different two-wheeler categories. International bike makers Yamaha, Suzuki and niche player Royal Enfield also pose a threat with their high-performance models.

But Hero leverages its unparalleled scale and distribution depth to counter these rivals. By blanketing rural and semi-urban markets across India, Hero has created a stronghold unmatched by competitors. This physical access and mindshare makes Hero the undisputed leader in the budget commuter segments which make up the meat of the market. Hero’s widespread presence across urban and rural markets makes it the category leader across multiple segments despite stiff competition.

Full Throttle Ahead 

Besides traditional advertising, Hero also connects directly with next-gen audiences via social media campaigns. The company is investing heavily in R&D and global partnerships to build new products like electric vehicles. Initiatives like dedicated BigWing showrooms for premium bikes and Hero Experiences platform for brand engagement help foster customer loyalty.

Wrapping up

Hero MotoCorp has leveraged its widespread distribution network and strong brand equity built over decades to cement its leadership in the highly competitive Indian two-wheeler market. With continued investments in new product development, expanding global footprint, and customer-centric initiatives, Hero is future ready. 

The company’s judicious marketing mix focusing on value-based products, pocket-friendly pricing, penetrating rural markets, and emotive advertising has struck a chord with bike buyers across segments. Though competition is heating up, Hero MotoCorp looks set to ride the growth wave in the coming years with its time-tested strategy and ability to adapt with changing consumer needs. As the company now gears up to enter electric mobility, its established base and marketing playbook put it in the driver’s seat to lead the charge.