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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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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Excerpts

Two-Wheeler Market in India

Till 1984, the Indian two-wheeler market was dominated by scooters from Bajaj Auto Ltd , though India also had two-wheeler products from LML , Ideal Java , TVS SUZUKI , Escorts , and Royal Enfield . Gradually, HeroHonda succeeded in changing the preferences of Indian customers. The company’s advertisement campaigns highlighted the user friendly features of its motorcycles with their slogan "Fill it, shut it, forget it." HeroHonda soon became the world’s single largest two-wheeler company...

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

Honda's Entry into Mass Market

HMSI had a few products like the CB Twister in its product portfolio targeted at the urban customers. However, it launched a new model, the 110 cc 'Dream Yuga', in May 2012 in order to serve mass and rural customers. With the launch of the Dream Yuga, HMSI products were set to serve more segments of the Indian population. The 'Dream Yuga' was developed as competition to the well-established Hero Motorcorp’s Passion . HMSI planned to sell 300,000 units of the Dream Yuga during 2012-13 . It also planned to launch more motorcycles under the Dream series. HMSI wanted to develop more products in the 100cc segment to compete with Hero MotoCorp's popular bike, the Splendor...

Future Outlook

HMSI planned to foray into the pre-owned two-wheeler business in India. About the entry of two wheeler manufacturers into the pre-owned two wheeler market Abdul Majeed (Majeed), Auto practice leader at PwC , said, "I was expecting this move to happen in the two-wheeler space as well. What Honda is trying to do here is get into the nook and corners and not only create a brand but also get closer to the customer. In the two-wheeler segment it's important to be present in the Tier II and III towns and that is what Honda will do now by intensifying its distribution network there. It is only a matter of time when the other two-wheeler manufacturers also enter the second-hand market."...

Exhibits

Exhibit I: HMSI Products
Exhibit II: Competitive Products in Indian Two-Wheeler Market (In Terms Of Displacement)
Exhibit III: HMSI Product Sales in India
Exhibit IV: Segment-Wise Market Share of Indian Two-Wheelers
Exhibit V: Retail Outlets of Two Wheeler Companies in India


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