Honda's Foray into the Mass Market in India

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Case Details:

Case Code : MKTG306
Case Length :13 Pages
Period : 2012
Pub Date : 2013
Teaching Note : Available
Organization :Honda Motorcycle and Scooter India Ltd.
Industry :Two wheeler market
Countries :India

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Honda Motorcycle and Scooter India Ltd. (HMSI), the subsidiary of Japan-based automotive manufacturing firm Honda Motor Company Ltd (HMCL), launched a new motorcycle model, the ‘Dream Yuga’, in India in May 2012 to attract mass and rural customers. The company aimed to sell 300,000 'Dream Yuga' units by the end of 2012-13. With the launch of the Dream Yuga, HMSI made its products more accessible by increasing the number of its retail outlets. It also made them affordable to a wide range of the customers in India.

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HMSI aimed to become the leader in the Indian two-wheeler market by 2020 by introducing new models and expanding into new markets. In order to tap the potential in Tier-II and Tier-III cities of India, HMSI planned to strengthen its sales and service network in these cities.

In addition, with the aim of reaching and connecting with more people in India, HMSI planned to enter into the pre-owned two-wheeler business also. The challenge ahead of HMSI was to gain leadership in the heavily competitive Indian two-wheeler market.

Experts were skeptical about how effective HMSI’s mass marketing would be and whether it would help the company achieve its objective of becoming market leader in India by 2020.

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