Hero Honda was established in 1984 in India as a joint venture between an Indian Company HERO GROUP and a Japanese Company HONDA MOTOR. For many years after the establishment, Hero Honda enjoyed sole motorcycle producer in India as it has got the first mover advantages. Later various other Indian brands entered the market with the name like Bajaj, TVS and Mahindra. Other foreign companies like Suzuki and Yamaha also entered market after visioning the growth potentiality of the market. But Hero Honda has still been able to retain the no. 1 position in India. In case of Nepal there is intense competition between Hero Honda and Bajaj. Similar to the case of India, Hero Honda in Nepal has always been considered as the most trusted bike in the country that is backed up by the partnership with a world class Japanese company Honda. In Nepal, Hero Honda and Honda has the highest resale value than bikes of any other company.
Hero Honda has a wide range of motorcycles available in Nepal. The wide range of Brand Portfolio is designed in such a way that it will target a wide range of customers and stay one step ahead of the competitors. There are 12 different products available under the brand Hero Honda in Nepal. Name of the motorcycle along with its current price in Nepal are listed as follows:
S.N. | Name | Amount |
1. | Hero Honda Karizma ZMR | Rs. 286,900 |
2. | Hero Honda Karizma R | Rs. 236,900 |
3. | Hero Honda CBZ Xtreme | Rs. 186,900 |
4. | Hero Honda Hunk | Rs. 190,900 |
5. | Hero Honda Pleasure | Rs. 137,900 |
6. | Hero Honda Splendor Plus | Rs. 135,900 |
7. | Hero Honda Glamour | Rs. 170,900 |
8. | Hero Honda Super Splendor | Rs. 151,900 |
9. | Hero Honda passion PRO | Rs. 142,900 |
10. | Hero Honda Splendor NXG | Rs. 139,900 |
11. | Hero Honda CD-Delux | Rs. 123,900 |
12. | Hero Honda Achiever DSS | Rs. 174,900 |
The fact that the brand is known to all in the Indian market and Nepalese market cannot be questioned. The company in this regard has got the first mover advantage also. When most of the company during that period was manufacturing 2 stroke scooters, Hero Honda was the first to enter to the motorcycle segment. The company with partnership with Honda, Japan entered the Indian market and captured the entire segment with its monopoly. The company was in such a position that it was difficult for its competitors to beat the strategy of Hero Honda. The recall of the brand was not as difficult as it was single player and at present its regular television commercial and sponsoring of cricket are kind of its reminder ads. Brand Image
A survey conducted to compare the brand image of the Hero Honda and the Bajaj shows just 2% difference in both these with respect to the brand image. The Hero Honda gets 55% compared to 53% of Bajaj. The brand was has been promoted with several taglines: * DeshkiDhadkan
* DhakDhak Go
* HarGaonHarAangan ( Every village, every courtyard)
With the split of joint venture between the Munjal group and the Honda, Japan, it is expected that the brand image of the company will decline and the competitor’s find it a good time to take advantage to increase their market share. The reasons for this are: 1. The dealers during this period will face demotivation and are very likely to switch to other brand. 2. The product and quality of Japanese 2 wheeler is definitely better than the Indian 2 wheeler. The Honda will definitely bring in its separate product in the segment in the near future with more intense advertising to beat Hero group. The Munjal Group will have to come up with new strategies to build its brand image and regain the position that it holds today.
Market Share of Hero Honda and its Competitors
Talking about the whole of Nepal’s market, Hero Honda has been able to attain 30 % of the whole market since last four to five years, and taking that into account, the number of bikes sold by Hero...