Study of Hero Honda Value Proposition

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Hero Honda : Challenges in Multi-segment Positioning and Selling

Context of Brand Positioning.Hero Honda mainly focused on sub segmentation of each level of the market and targeted each segment with a message that was based on emotional benefits (indicative catchline Desh ki dhadkan), since emotional segmentation is more powerful than functionality based segmentation. Further it worked on: * Multi segmentation based on pricing, utility, income level and age profile * Brand portfolio covered 13 different products in motorcycle segment. * Hero Honda has also diversified into scooters tailor made for females. * Increase in the market share of Bajaj and possible pull out by Honda group. * Bajaj capitalized on the affordable mobility to the mass middle class. Positioning approach of Hero HondaHero Honda positioned its products as per context above which can be evaluated as below: Pros

* It has maintained strong leadership in entry level and executive level segments. * The strong distribution network of 4000 facilities nationwide including 700 dealers penetrating the rural India also has helped in the brand positioning to the target segment for respective product. * The timing based promotion to its target markets like the farmers helped in translating their happy mood to maximize the sales of their motor bikes on certain festive occasions. * Using the media having the maximum percolation rate to the masses of the country. Eg: Doordarshan reaches out to millions of people in rural areas where the cable TV is still unavailable. * Encashed on the emotion based “desh ki dhadakan” segment of India and were successfully able to beat the superior local technology of BAJAJ. Cons

* No focused attention towards high end segments due to varied segmentation. * Due to their over reliance on emotion based positioning they have not been able to portray their technological superiority over its competitors.

Impact of Exit of Honda...
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