Despite tough competition, brand hero honda continues to be India’s top two-wheeler brand for the high recall that it enjoys among domestic consumers
Post partition when the Munjal family shifted to Ludhiana and started making bicycles who would have thought that it was a giant in the making? But once the government allowed foreign companies to enter the Indian market through minority joint ventures, Hero Group joined hands with Japan’s Honda Motor Co. to manufacture motor bikes. And today, the joint venture – Hero Honda – is not only the world’s largest producer of two-wheelers, but also one of the dearest brands for most people in India. Certainly, the path was not rosy enough. But with a strong determination and by deploying right strategies at the right time, the brand has managed to climb the ladder faster than any other auto maker in the country.
Year 2006 was a true taste of character for Hero Honda. This was the year when its arch rival Bajaj Auto was close to topple it as the market leader. The whole Indian media was doing rounds of speculations about when Bajaj would be able to overtake Hero Honda. But the bike maker was busy finalising its strategy to come out of the tight situation. Recalls Anil Dua, Senior VP – Marketing & Sales, Hero Honda, “We then decided to change our focus to the top-line of the company to which the bottom-line will follow and the rest, as they say, is history.” Undoubtedly, with the tag of a leader in terms of mileage and a focus on entry-level, the company deals with great volumes and there by touches the lives of millions of the Indian consumers ensuring greater brand value for the company. Moreover, going by industry watchers this is one of the biggest reasons which has provided Hero Honda such a cushy position in the domestic market. In fact, the company’s timely foray into the rural parts of the country has empowered its brand equity to grow by leaps and bounds. Avers Pankaj Dubey, National Business Head, India Yamaha Motor, “The Hero Honda brand is very strong in the rural parts of the country and it is very difficult to challenge the leadership position of the company in those areas.” For the uninitiated, Hero Honda banks more than 40% of its total sales from rural areas currently.
However, it is not only about the rural expansion and entry-level segment, the company has also built upon its premium segment portfolio and hence, has been able to cater to a wide range audiences. Offering products like Achiever, Hunk, CBZ Xtreme, Karizma and Karizma ZMR, the company proudly labels its premium products portfolio as its diamond strategy. Explains Pawan Munjal, MD, Hero Honda to 4Ps B&M, “We have decided in the last couple of years that we have to have leadership across segments. We should not be seen as a company for rural masses only. So, we have refreshed our portfolio and have been growing at almost 40% in premium segments.”
Year 2006 was a true taste of character for Hero Honda. This was the year when its arch rival Bajaj Auto was close to topple it as the market leader. The whole Indian media was doing rounds of speculations about when Bajaj would be able to overtake Hero Honda. But the bike maker was busy finalising its strategy to come out of the tight situation. Recalls Anil Dua, Senior VP – Marketing & Sales, Hero Honda, “We then decided to change our focus to the top-line of the company to which the bottom-line will follow and the rest, as they say, is history.” Undoubtedly, with the tag of a leader in terms of mileage and a focus on entry-level, the company deals with great volumes and there by touches the lives of millions of the Indian consumers ensuring greater brand value for the company. Moreover, going by industry watchers this is one of the biggest reasons which has provided Hero Honda such a cushy position in the domestic market. In fact, the company’s timely foray into the rural parts of the country has empowered its brand equity to grow by leaps and bounds. Avers Pankaj Dubey, National Business Head, India Yamaha Motor, “The Hero Honda brand is very strong in the rural parts of the country and it is very difficult to challenge the leadership position of the company in those areas.” For the uninitiated, Hero Honda banks more than 40% of its total sales from rural areas currently.
However, it is not only about the rural expansion and entry-level segment, the company has also built upon its premium segment portfolio and hence, has been able to cater to a wide range audiences. Offering products like Achiever, Hunk, CBZ Xtreme, Karizma and Karizma ZMR, the company proudly labels its premium products portfolio as its diamond strategy. Explains Pawan Munjal, MD, Hero Honda to 4Ps B&M, “We have decided in the last couple of years that we have to have leadership across segments. We should not be seen as a company for rural masses only. So, we have refreshed our portfolio and have been growing at almost 40% in premium segments.”
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Source : IIPM Editorial, 2011.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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