Honda's Marketing Strategies in India

            
 
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Case Details:

Case Code : MKTG098
Case Length : 19 Pages
Period : 1998-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Honda Motors
Industry : Automobile (Two Wheelers)
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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The Launch Contd...

The company's scooter models included Activa, Dio and Eterno. Appreciating the efforts of the company, Veeshal Bakshi, an analyst with Financial Express, a leading business daily in India, said, "Honda has stirred the Indian automobile markets in many ways. Its wholly owned subsidiary Honda Motorcycle and Scooter India (HMSI) single handedly revived the two-wheeler scooter market, at a time when even the likes of Bajaj were unable to prevent the slide in scooter sales."3

Background Note

The history of HMCL could be traced back to 1946, when Soichiro Honda, a mechanical engineer, established the 'Honda Technical Research Institute' in Hamamatsu, Japan.

The idea was to develop and later produce small two-cycle motorbike engines. Honda's first product, an A-type 50cc bicycle engine, was produced in 1947.

In 1948, HMCL was incorporated with a capital of one million yen. Soon, the company started to design and produce lightweight motorcycles.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Honda's first motor cycle, D-type two stroke 98cc, was produced in 1949. In the early fifties, the headquarters of the company was shifted from Hamamatsu to Tokyo and the company got listed on the Tokyo Stock Exchange. In 1959, the American Honda Motor Company Inc. was established in Los Angeles.

The American venture started modestly with a staff of six and sales figure barely touching 200 motorcycles.

In 1963, American Honda launched the "You meet the nicest people on a Honda" advertising campaign, which revolutionized the US motorcycle industry.

A few years later, Honda established motorcycle assembly plants in Germany and Belgium.

During the 1960s, HMCL expanded its product line by introducing light trucks, compact cars, out board motors, power generators and several new models of motorcycles and motor scooters.

New production units were started in Thailand, UK, Malaysia and cumulative motorcycle production reached 10 mn units by 1968. During the 1970s, HMCL entered the Philippines, Indonesia and Brazil...

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3] "Now Time Has Come to Study Other Options," Veeshal Bakshi, Financial Express, October 30, 2004.

 

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