Company Name- Hero Bicycle
Founders- Satyanand Munjal, Dayanand Munjal, Om Prakash Munjal and Brijmohan Lal Munjal
Hero cycles, a part of Hero Motors Company, is one of the largest manufacturers of bicycles in the world. The company is based in Ludhiana, Punjab and produces almost 19, 000 cycles per day and 5.2 million cycles per annum.
How It All Started
It was established in Ludhiana, it started the company by manufacturing the components of the bicycle. The company has its name in Guinness Book of world records because it is the single and largest producers of bicycles. After its establishment, it became the largest manufacturer in India in 1975.
The company was established in 1956, it is certified by ISO 9001 and ISO 14001. It also entered into Premium, mid Premium and Super premium segment with the brand name Hero Sprint. It also acquired Firefox Bikes, which is India’s largest premium bicycle brand.
Firefox Bikes established and spread out through 160 outlets and being growing in per 3-year, achieving 35% in revenue. It has obtained shareholding of more 50 percent of Avocet Sports limited’s equity capital. It has done to mark their entry into the esteemed cycle market of Europe to become a part of their growth plan of the country.
The company has also secured a majority stake in leading bicycle manufacturer of Sri Lanka, the BSH Ventures and also boosted their manufacturing capacity.
Hero’s Marketing Strategy and Interesting Reasons behind Its Success
The market for this brand is strong as it owns the big part of bicycle industry which includes 40% of the market. Because of its manufacturing division and exports across the world, it won the hearts of million bikers. About 10 percent of the world annual bicycle production is contributed by India, which is the major part of the bicycle industry.
In India, the annual domestic demand of bicycle is approximately 10 million units and in this, around 2.5 million units are produced in government demand for various welfare schemes.
The company produces their products in the various range includes gents, kids, ladies, Mountain Bikes, Road Bikes, Hybrids, Tourers and BMX. The turnover of this company was Rs. 2080 crores in 2012, which includes 51% of market share.
On 2012, it crossed the figure of producing 13 crores Cycles. They produce bicycles of high quality, which is also affordable. The technologies they use are their largest profit generator and it is still developing.
At present, the company is exporting their cycles to more than 70 countries, which includes Poland, Finland, Africa, UK, Europe, etc. It has employed 4800 workers who produce 18, 500 bicycles per day on 3 states of their art plants.
3000 dealers work to connect it to its final customer. No-organized labor union and family members of employees can be found ready employment within Hero and it is the remarkable feature of Hero Group.
Grand Strategy for Competitors
The competitors of the company are Tube Investments of India Limited and Atlas Cycles Limited. These players account more than 50% in the country’s total bicycle sales. In 2002, the company has made a tie-up with National Bicycle Industries, which is a part of Matsushita Group in Japan.
They did this for manufacturing high-end bicycles. The company signed in an agreement of technical collaboration cum joint marketing with Ultra Motor to produce a new range of electrical low-speed two-wheelers in India. In between 2008-09, they launched 14 new models for an export market. They introduced their new sets of product in the same year.
Hero Cycle’s Campaign
Hero cycles have launched an aggressive social campaign for the promotion of the idea of cycling, which can work as an environmental and health friendly initiative for the world.
The company initiated “Hero Cyclists” to promote the idea of cycling among Delhi’s people. This includes a powerful messaging through social media to discuss the environment and health benefits of people if a large population will turn their driving mode into cycling as a mode of daily transport. They catch the people eyeballs by this campaign. The message of this campaign was to adopt this eco-friendly cycle as a means of transport.
‘Dillikighanti’ is the symbol of Hero Cycle’s other campaign on social media. In this campaign, volunteers distributed 15000 ‘ghantis’ or bells in Delhi NCR, which includes Cannought Place, Sarojini Nagar Market, metro stations, Rajouri Garden and more. This campaign is done to encourage the idea of cycling among the people of capital and it also aims to change the social consciousness among the people about cycling.
The founder of the company is very active in the area of the campaign. The Managing Director and Chairman of this company want to make India a more bicycle friendly country. He always aims that their campaign must raise social awareness among the people and also wants to increase the acceptance of cycling among urban people who use plush cars and other transports.
“Gaon Ka Hero”
The concept of this campaign is to connect to people at the deepest level. This shows that people living in Metropolitans are facing so much of challenges while traveling from villages or small cities. This campaign shows how a cycle can always stay with you in every matter. It can be an excellent companion for life. This campaign included short stories that easily connect with the people. The campaign said that everybody is a wingman from inside and Hero Cycle can help you to become a hero of your own world.
The company has awarded for best exporter by the Engineering Export Promotional Council Best Exporter Award for exporting its product continuously over the last 28 years.
Hero Bicycles changes the definition of Bicycles is that now bicycles are not about the basic traveling machine, it is now more about being creative. It is the world’s largest manufacturing company of bicycle, which has registered a phenomenal sale in December by selling more than 6 lakhs units.
This makes the highest one-month selling company in the history of the bicycle. In comparison to the other cycle companies in India, it has all the qualities which make it exceptional from others.