This has been acknowledged to be one of the pillars of the company’s growth. To quote the Chairman, Brijmohan Lall, "I never wanted to march alone."
Product
Hero Honda’s product range is impressively wide – with a model available in every customer segment. From the entry level CD Dawn (with an ex-showroom price of about Rs. 30,000) to the premium image-driver Karizma (with an ex-showroom price of about Rs. 80,000), there are currently seven models of Hero Honda bikes in the market.
Based on the purchase criteria, the Indian motorcycle market is divided into three broad segments; In the ‘Price’ segment the product price is the most important, followed by fuel efficiency. Here, Hero Honda has two brands: CD 100/CD 100 SS and the CD Dawn. In the ‘Deluxe’ segment, the customer seeks product styling and fuel efficiency. This is the largest segment, making up nearly 55% of the total motorcycle market. Here, Hero Honda has two brands: Splendor+ and Passion Plus. In the ‘Premium’ segment, power and product styling are the overriding criteria and the customer is less price conscious. Though the third category
is currently the smallest segment in the motorcycle market, it is on a clear growth trajectory. For this customer, Hero Honda offers three models: Ambition135, CBZ and Karizma.
Recent Developments
After the emphasis paid by Hero Honda on the factors called 3S (Sales, Service and Spares), the company has now a fourth ‘S’ added to the list: Safety. At select dealerships, a safety corner has been created, where the customer, who has come to take delivery of his bike, is explained the nuances of safe riding. The company plans to extend this concept to its entire dealer network. In view of increasing product parity, ‘soft services’ are destined to become the big differentiators. To ensure its continued leadership in the market, the company – among other initiatives – has recently appointed service advisors at workshops, to assist the customers and add value to the service experience.
Of late, the company has also made a concerted effort to increase its reach in the rural market. An important aspect of this thrust was the setting up of ‘Service Extensions’ in these markets. With this, there are over 1,500 authorised outlets for Hero Honda across India.
Promotion
Hero Honda uses a judicious mix of corporate and product advertising. The corporate positioning is reflected in the base line, ‘Leading the Way’, while the sales pitch is on an emotional plank, ‘Desh ki Dhadkan’, a communication that depicts Hero Honda as a part of every Indian’s daily life. The product advertising showcases specific motorcycle models. The company has taken an integrated approach to communication and has co-joined its advertising campaigns with sponsorship of sports, CRM programmes, direct marketing, as well as the internet.
The company’s first advertising campaign was launched in 1984, with the truly memorable promise: ‘Fill it. Shut it. Forget it’. This capitalised on the fuel efficiency of CD 100. This punch line became a buzzword across India. In 2001, Passion was launched, with the headline: ‘Born in a Studio. Not in a Factory’ and a by line ‘When Style Matters’. This platform immediately positioned the bike as the best in looks and style. Within four months of its launch, Passion had created marketing history. It had become the second-largest selling motorcycle model in India. CD Dawn was launched as ‘Public ka Naya Transport’ showing people ready to move from public transport to private transport. It clocked sales of 100,000 bikes within just 100 days of
its launch.
Apart from consistent media presence, Hero Honda has been in the forefront of cricket sponsorship, culminating in the sponsorship of the 2003 Cricket World Cup.
The company is a major sponsor of a premier golf tournament – the PGA Asia Tour. Hero Honda is also the ‘Title Sponsor’ of the annual Indian Television Academy Awards.
Brand Values
Confidence and trust are the two enduring values associated with Hero Honda. These
values define the bond that Hero Honda establishes with customers cutting across geographic locations, income levels and market segments. The reliability and durability of this relationship has resulted in positive word-of-mouth from satisfied customers, working to
the brand’s advantage.
The success of the Passport Programme among users of Hero Honda motorcycles confirms an emotional association with the company. In a market that has many brands competing for the customers’ choice and loyalty, this is a rare occurrence. Its emergence as a world-leader has also added lustre to Hero Honda’s image. Millions of satisfied Hero Honda customers take pride in belonging to this two-wheeler ‘family’.
