HMSI Enters Mass Market with "Dream Yuga"*

Abstract:

HMSI, known for its premium and executive segment of motorcycles and scooters in India, made an entry into the economy segment of motorcycles with the Dream Yuga. It believed that by entering the economy segment, it would improve its sales. The case touches on the economy segment motorcycles and the way HMSI is competing in the economy segment in India.

Issues: » Discuss the rationale for the entry of HMSI into the economy segment in the Indian motorcycle market. » Understand the entry of Dream Yuga into the rural market. Introduction In May 2012, Honda Motor Scooter India Pvt Ltd (HMSI), the Indian subsidiary of Honda Motor Company Ltd. (HMCL), launched the Dream Yuga motorcycle in the Indian two wheeler market to attract mass and rural customers. Until the launch of the Dream Yuga, HMSI had sold its products only in the executive and premium segments and had set up stores only in Tier I cities of India. In 2012, it decided to focus on the mass and rural markets with the aim of gaining a leadership position in the Indian two wheeler market. It’s sought to sell 300,000 Dream Yuga units by the end of 2012-13. HMSI wanted to displace Bajaj Auto and Hero MotoCorp to lead the Indian two wheeler market by 2020...

Questions for Discussion:

1. Why did HMSI launch the Dream Yuga though it had the CB Twister in that segment?
2. Do you think launching an economy segment product will attract more customers to HMSI? Justify.
3. Do you think the Dream Yuga will be able to sustain itself in the economy segment given the fact that other players are offering more economical products? Justify.

Key words:
Honda, Dream Yuga, Two wheeler, Economy Segment, Mass Marketing, Rural market, Executive /Premium segment, CB Twister

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