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    Passport Program In The Success Of Hero Honda Commerce Essay

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    Hero Honda Motors Limited, based in Delhi, India is a joint venture between the Hero Group of India and Honda of Japan. Verification. It has been referred to as the universe ‘s biggest maker of 2-wheeled motorised vehicles since 2001, when it produced 1.3 million minibikes in a individual twelvemonth. During the financial twelvemonth 2008-09, the company has sold 3.28 million motorcycles and the net net income of the company stood at Rs. 1281.7 crore, up 32 % from the old financial twelvemonth.

    The company ‘s most popular theoretical account is the Hero Honda ‘s Splendor, which is the universe ‘s largest-selling bike, selling more than one million units per twelvemonth.

    The company introduced new coevals bikes that set industry benchmarks for fuel thrift and low emanation. A legendary ‘Fill it – Shut it – Forget it ‘ run captured the imaginativeness of commuters across India, and Hero Honda sold 1000000s of motorcycles strictly on the committedness of increased milage. Over 20 million Hero Honda two Wheelers tread Indian roads today. These are about every bit many as the figure of people in Finland, Ireland and Sweden set together! Hero Honda has systematically grown at dual figures since origin ; and today, every 2nd bike sold in the state is a Hero Honda. Every 30 seconds, person in India bargain Hero Honda ‘s top -selling bike – Luster. This gay season, the company sold half a million two Wheelers in a individual month-a effort unparalleled in planetary automotive history. Hero Honda motorcycles presently roll out from its three globally benchmarked fabrication installations. Two of these are based at Dharuhera and Gurgaon in Haryana and the 3rd province of the art fabrication installation was inaugurated at Haridwar, Uttrakhand in April this twelvemonth. These workss together are capable of bring forthing out 4.4 million units per twelvemonth. Hero Honda ‘s extended gross revenues and service web now spans over 3000 client touch points. These consist a mix of franchises, service and trim points, trim parts stockiest and authorised representatives of traders located across different geographicss. Hero Honda values its relationship with clients. Its alone CRM enterprise – Hero Honda Passport Program, one of the largest plans of this sort in the universe, has over 3 million members on its roll. The plan has non merely helped Hero Honda understand its clients and present value at different monetary value points, but has besides created a loyal community of trade name embassadors. Having reached an impregnable pole place in the Indian two Wheeler market, Hero Honda is invariably working towards consolidating its place in the market topographic point. The company believes that altering demographic profile of India, increasing urbanisation and the authorization of rural India will add 1000000s of new households to the economic mainstream. This would supply the growing ballast that would prolong Hero Honda in the old ages to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors compactly points out, “ We pioneered India ‘s bike industry, and it ‘s our duty now to take the industry to the following degree. We ‘ll make all it takes to make at that place. ”

    Company profile

    “ Hero ” is the trade name name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda company, India.

    During the 1980s, the company introduced bikes that were popular in India for their fuel economic system and low cost. A popular advertisement run based on the motto ‘Fill it – Shut it – Forget it ‘ that emphasized the bike ‘s fuel efficiency helped the company grow at a double-digit gait since origin.

    Hero Honda has three fabrication installations based at Dharuhera and Gurgaon in Haryana and at Hardware in Uttarakhand. These workss together are capable of churning out 3.9 million motorcycles per twelvemonth. [ commendation needed ] Hero Honda ‘s has a big gross revenues and service web with over 3,000 franchises and service points across India. Hero Honda ‘s client trueness plan, [ elucidation needed ] the Hero Honda Passport Program, claims to be one of the largest plans of its sort in the universe with over 3 million members. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.


    India became the 2nd largest two Wheeler maker in the universe and get downing in the fiftiess with the Automobile Products of India ( API ) that manufactured the Lambrettas and Bajaj Auto Ltd. with its association with Piaggio of Italy ( maker of Vespa scooters ) as the largest makers within the state commendation needed.

    The licence raj that existed between the 1940s to 1980s in India did non let foreign companies to come in the market and imports were tightly controlled. This regulative labyrinth, before the economic liberalisation, made concern easier for local participants to hold a marketer ‘s market. [ neutrality is disputed ] Customers in India were forced to wait up to 12 old ages to purchase a scooter from Bajaj. The Chief executive officer of Bajaj commented that he did non necessitate a selling section, merely a despatch section. By the twelvemonth 1990, Bajaj had a waiting list that was 26 times its one-year end product for scooters.

    The bike section had the same long delay times with three makers: Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the lone four-stroke engine at that clip and took the higher terminal of the market but there was small competition for their clients. Ideal Jawa and Escorts took the center and lower terminal of the market severally.

    In the mid-1980s, the Indian authorities ordinances changed and permitted foreign companies to come in the Indian market through minority joint ventures. The two-wheeled market changed with four Indo-Japanese joint ventures: Hero Honda, TVS SUZUKI, Bajaj Kawasaki and Kinetic Motor Company ( Kinetic Honda ) . The entry of these foreign companies changed the Indian market kineticss from the supply side to the demand side. With a larger choice of two-wheelers on the Indian market, consumers started to derive influence over the merchandises they bought and raised higher client outlooks. The industry produced more theoretical accounts, titling options, monetary values, and different fuel efficiencies. The foreign companies new engineerings helped do the merchandises more dependable and with better quality. Indian companies had to alter to maintain up with their planetary opposite numbers.

    List of theoretical accounts


    Ambition 133, Ambition 135

    CBZ, CBZ Star, CBZ Xtreme

    Cadmium 100, Cadmium 100 SS, CD Dawn, CD Deluxe, CD Deluxe ( Self Start )

    Hunk, Joy, Karizma, Karizma R, Karizma ZMR FI, Passion, Passion+ , Passion Pro

    Pleasure.Street, Splendor, Splendor+ , Splendor+ ( Limited Edition ) , Super Splendor, Splendor NXG

    The joint venture between India ‘s Hero Group and Honda Motor Company, Japan has non merely created the universe ‘s individual largest two Wheeler company but besides one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to turn out that it was possible to drive a vehicle without fouling the roads.

    Hero Honda Passport programme.

    The passport provides you with yet another chance to see A the company ‘s continued committedness to you, our valued client. You will shortly see that it opens the door to a host of particular offerings that Hero Honda Motors Limited has in shop for you.

    How to utilize your Hero Honda Passport?

    Each clip we visit an authorized Hero Honda franchise or service centre, do certain that we carry your Hero Honda passport with us.

    We can roll up points against purchase of spares, accoutrements and service at Hero Honda authorisedA franchises / service centres.

    The Hero Honda passport will function as a record book for maintaining an history of the points accumulate by you.

    Each rupee you spend, at the franchise / service centre, entitles you to one point.

    We besides earn fillips point when

    you come for a free service

    you visit the franchise ( at least thrice a twelvemonth ) , and do purchases deserving Rs. 50 per visit.

    We refer your relations and friends to buy a hero Honda bike.

    At the clip of puting our measures, guarantee that your Hero Honda passport is endorsed with the earned points.

    The more we earn your points, the more benefits you receive.

    What are the benefits of having a hero Honda passport?

    The accrued points can be used to bask a host of particular privileges and benefits from clip to clip.

    The minute we receive you hero Honda passport, you are automatically covered for one twelvemonth Accident Insurance RS 1 hundred thousand.

    We become entitled for particular wagess and price reductions, the minute you accumulate the specified points, at any of the authorized hero Honda dealerships / service centres.

    We besides receive invitations to sole local events, such as film shows, musical darks and carnivals.

    Periodic updates will be sent to you, from the hero Honda programmed centre, with your point position. Particular information and tips sing your bike, hero Honda Passport Program occurrences and sole offers from other trade names will besides be sent to you along with the updates

    For how long is the Hero Honda Passport valid?

    Your hero Honda passport is valid for a period of 3 old ages from the day of the month of issue. In instance of its loss or larceny, delight reach your franchise or the undermentioned reference for a replacing.

    How to utilize passport

    Always remember to transport your Hero Honda Passport with you when you visit a Hero Honda authorized dealership/service Centre.

    Every clip you do a dealing at a Hero Honda showroom/workshop, the trader would honor points into your Passport. You are eligible to roll up points, against purchase of spares, accoutrements, service and by mentioning friends to buy a Hero Honda bike.

    Do non bury to acquire your points endorsed on the Programme Points Sheet given in the Passport. Besides guarantee that these points are entered in extra in the Programme Centre transcript by the dealer.A

    Every clip a Programme Points Sheet gets completed, the trader would take the transcript from your Passport and direct it to Hero Honda. These would increase your opportunities for event invitation and particular offers.

    Make roll up your wagess every bit shortly as you reach the specified mileposts. ( For more information see the Reward Chart on last page ) .

    Please note that points do non go nothing after a gift aggregation in the Passport Programme and you can maintain roll uping gifts as you reach a peculiar milepost.

    Every clip you get your motorcycle serviced, acquire the Free/Regular Service Record Sheet ( as given in Section 2 of the Passport ) stamped by the dealer.A

    The Service Record Sheet would assist you acquire a ‘Bike Service Certificate ‘ , which can be really utile at the clip of your motorcycle resale.

    The Hero Honda Passport Programme is unfastened merely to Hero Honda bike owners/customers who are resident Indian subjects. It is non unfastened to non-resident Indians, employees of Hero Honda Motors Limited, and its advertisement bureaus ( Consequence: McCann and its several subordinate companies ) . The Hero Honda Passport will be issued in the name of an single merely, and non in the name of a company, corporate organic structure or association of individuals.

    The Hero Honda Passport will be issued merely to persons who are 18 old ages of age, or older.

    There is a non-refundable enrollment fee for the programme. two passport-sized exposures must be attached to the application signifier. the Hero Honda passport is non-transferable. in instance, an applier is the 2nd or subsequent user of the Hero Honda bike, he/ she is required to subject a transcript of the enrollment brochure, punctually transferred, along with the Hero Honda Passport Application signifier. If any Hero Honda Passport holder loses his/her Hero Honda Passport, a new transcript of the same will be issued to the member, on payment of the needed fee

    The Hero Honda Passport is valid merely for three old ages from the day of the month of issue. It will take lower limit of 4 hebdomads, from the day of the month of inscribing for the Hero Honda Passport Programme, to present the Hero Honda Passport.

    On going a Hero Honda Passport Programme member, the applicant authorises all the administrations, with which Hero Honda Motors Limited may finalize agreements ( including Hero Honda Motors Limited ) , to utilize informations submitted by him/her for selling and communicating intents, to heighten public presentation of the Hero Honda Passport Programme.

    n instance of any differences of differences in connexion with the Hero Honda Passport Programme, the same shall be decided by arbitration. The arbiter shall be the Managing Director, Hero Honda Motors Limited, or any individual nominated by him. The arbitration shall be conducted as per the prevailing arbitration Torahs regulations in New Delhi. Hero Honda Motors Limited shall non, in any manner, be apt, or be under any duty to the participant, if the Hero Honda Passport Programme is withdrawn or modified due to statutory passage ‘s, and judicial/ quasi judicial orders.

    All these astonishing wagess and benefits come to you as you earn points in the Hero Honda Passport Programme. Once you become a member, you will gain points for a host of regular minutess that you conduct even now at your local Hero Honda authorized Dealership or Service Center. These include:

    So wholly you have to make to gain points & A ; wagess is merely maintain keeping your Hero Honda bike, purchase echt Hero Honda Spare Parts and accoutrements and we ‘ll give you one point for every rupee you spend! A

    Star Club and Treasured Rewards

    This alone nine has been introduced for those members who get their motorcycles serviced on a regular basis from authorized Hero Honda Service Centers. The Star Club rank non merely identifies the member as particular for the HHPP household, but besides brings in some added benefits like: 30 % price reduction on labourA A – 7.5 % price reduction on spares, till the cogency of the Passport Introducing Treasured RewardGood intelligence for all Passport Programme members who have crossed the 1 hundred thousand point grade in the Hero Honda Passport Programme.A A new wagess construction has been introduced for all such members – The HHPP Treasured Rewards.

    The HHPP Treasured Rewards will be available at 8 prescribed mileposts get downing from 1.25 lakh points and stoping at 3 hundred thousand points, with each milepost at a spread of 25,000 points. In other words, the new mileposts are placed at 1.25 hundred thousand, 1.5 hundred thousand and so on boulder clay 3 lakhs Each clip a member reaches a milepost a Motorcycle Privilege Voucher of Rs. 1250/- will be given to him. This verifier may be used to avail a price reduction on the purchase of a new Hero Honda bike. This verifier is movable and can be given to friends or relations who may be be aftering to purchase a new Hero Honda bike Under the new Rewards Programme, the manner of entering points will alter. The points will now be recorded in 2 books – one would be the old Passport with Additional Treasured Rewards sheets for come ining points earned through service, spares and accoutrements and the other would be a Referral Book which will be used for come ining referral points. The Referral Book will get down from 1 lakh points. On traversing 1 lakh points the members need to retain a photocopy of their old Pass with them and direct the passport to the HHPP Programme Centre instantly. On reception, the old Passport with Additional treasured wagess sheets and the new Referral Book will be sent across to the members enabling them to get down redeeming wagess beyond 1 lakh points.


    Hero Honda, the ‘World No. 1 ‘ two-wheeled company, today announced that it has late achieved a landmark member base of more than 2 million clients for its “ Passport Programme ” . Extending across 1000 authorized Hero Honda franchises and SSPs, the plan has now become India ‘s largest Customer Relationship Management ( CRM ) Program. The unprecedented success of the CRM plan is a testimony of the religion that the clients repose in the company and its merchandises. It was born out of a demand to maximise committedness and beef up the emotional value that binds our diverse set of clients to the “ Hero Honda ” trade name. With its disposed tagline “ Rishta Dil Ka ” , the Passport Programme is a strong platform for the company to construct long-run relationships with its clients, beyond the point of sale, and pass on its trade name image of ‘trust ‘ and ‘reliability ‘ . The Hero Honda Passport Programme rank is a alone inaugural unfastened to the proprietors of Hero Honda bikes. The plan offers many touchable and intangible benefits to both the clients every bit good as to the traders. Members earn points for incurring outgo at the Hero Honda dealership/workshop, which can subsequently be redeemed against benefits. On the juncture of the memorialization of the 2 million-passport plan milepost, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. said, “ At Hero Honda our enterprise is to offer the best in merchandise quality to our clients ensuing in highest degrees of client satisfaction. The Passport programme non merely builds digesting relationships with our clients but besides offer them some ‘extra value ‘ , beyond merely the touchable benefits of our merchandises. This milepost merely reaffirms our clients ‘ religion in us, which has been polar in the company ‘s growing ” . The Hero Honda Passport programme was rolled out nationally in the twelvemonth 2001, after a successful pilot in four provinces in the twelvemonth 2000. A alone characteristic of the programme is its reward theoretical account, harmonizing to which every rupee spent by the member translates into a wages point. These reward points can so be redeemed for exciting gifts. One of the most important benefits of this plan is a free personal accident policy worth Rs. 1 hundred thousand. Insurance claim of over Rs. 6 crore has already been disbursed to dependent households, representing Hero Honda ‘s concern non merely for the safety of its clients, but besides their household members. With the aid of this plan, the company has already received over 900,000 referrals therefore besides giving a bonus to gross revenues through favorable word of oral cavity.

    Reappraisal of literature

    With a member base of more than 20 lakh clients widening across 1000 authorised traders and SSP ‘s, Hero Honda Passport Program is today the state ‘s largest Customer Retention Management ( CRM ) plan. Under the disposed tagline “ Rishta Dil Ka ” , the plan has become a strong platform for us to construct long-run relationship with our clients beyond the point of sale, and take frontward our trade name image of ‘trust ‘ and ‘reliability ‘ . It was born out of a demand to maximise committedness and beef up the emotional value that binds our diverse set of clients to the “ Hero Honda ” trade name. The plan represents a cardinal alteration in looking at the client as a long-run plus instead than a mere mark for gross revenues dealing.

    Marketing plan designed to heighten trade name trueness by cultivating an ongoing relationship between a seller and his client. Successful trueness plans encourage the consumer to purchase often, to increase the sum spent each clip, and to concentrate all or most of their related purchases on that trade name. Most loyalty plans offer fringe benefits for rank in a nine or plan and wages purchases. Wagess may be based on the dollar value of purchases made or on the frequence of purchases. The most well-known trueness plans are air hose frequent-flyer plans that offer price reductions against future travel called award stat mis. Most big supermarket ironss now have frequent-buyer nines that offer no-coupon price reductions every bit good as newssheets and affiliate price reductions. Loyalty plan tactics besides include regular communicating with clients such as reminder mailings, private recognition cards, cross-sell and up-sell offers, satisfaction and sentiment studies, and aggregation of information for member databases. See besides frequency price reduction.

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