Monday, 5 August 2013

Hero Motors Strategy to counter attack the aggressive Honda Motors India team

Honda Motors recently marked their highest ever production in July, gained the highest ever market share in July and for the first time pimped Bajaj Auto to become second largest two wheeler player in the second largest two wheeler market in the world. The company has even said that they would overtake the home grown Hero MotoCorp and become the number one player by 2016. To this even the chairman of Hero MotoCorp commented, "it's not a joke to be number one"

The verbal spat has already begun between the two companies. Honda, as we all know has been slowly capitalizing on its technological strength and is slowing entering into the motorcycle market also. In scooter market, we already know the best selling Activa belongs to Honda, which makes it a market leader in scooter segment. The question now lies what is Hero MotoCorp doing to counter the attack and gain the lost market share, the next few lines would give a clear picture of same in your mind.

Mr. Pawan Munjal, one of the most extrovert and most seen communicating with journalists in the entire Munjal family has always been very active in day to day business activities at Hero MotoCorp. Now, with a strong focus to retain the lost market share and further take it to the next level, Mr. Munjal has himself chaired the strartegic plans for the group in next few years - The major changes are briefed below -

In an internal mail to all the employees he stated - "I am asking Anil Dua to completely go after this (domestic) market with full vigour...and not only win back the lost market share, but also take it to higher levels," Munjal wrote in the email sent on August 1, a copy of which has been reviewed by ET. Mokashi, who in his earlier role as head of national sales and exports used to report to Dua, will now report directly to Munjal.

  • Mr. Anil Dua, Senior Vice President, Sales & Marketing will now focus entirely on Domestic market segment. 
  • Mr. Deepak Mokashi, will head a separate division which will focus on the International business.Mr. Mokashi will now directly report to Mr. Munjal. He earlier used to report to Mr. Dua
  • Also announced is a separate unit to be set up for spare parts, which will be headed by Mr. Sanjay Bhan, who was earlier head of marketing. The company is setting-up an integrated global parts centre (GPC) at Neemrana in Rajasthan at an initial investment of Rs 160 crore.
  • Mr. Parag Agarwal, who was earlier responsible for brand communication will now report directly to Mr. Mokashi and will take care of International business, as head of marketing. 
  • Mr. Rajesh Makhija, has now been designated as head of national service and CRM and will report directly to Mr. Anil Dua. 
  • Mr. Ajay Dikshit who was earlier in charge of dealer development is now Assistant Vice President, dealer learning & development. Mr. Dikshit will continue to report to Mr. Dua.
  • Also a new geographical territory, "Central zone" has been added to already four classified zones and will take total no. of zones to five.
The positions vacated by Mokashi and Bhan are being filled by A Srinivasu and Sanjeev Shukla, respectively. Bhan's earlier position of marketing head has now been bifurcated into two — one for the domestic market and the other for international markets. Srinivasu, who was the zonal head for South, now moves into the corporate headquarters of Hero MotoCorp at Delhi, as head of national sales.


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