Abstract

The case discusses the rural marketing initiatives of Hero Honda Motors Limited (Hero Honda), a leading two wheeler company in India. Hero Honda, which was the result of a joint venture between Japan-based Honda Motor Company Limited (HMCL) and the India-based Hero Group, began its operations in 1984. In late 2007, Hero Honda started putting emphasis on the rural markets. In December 2007, the company started a separate ‘rural vertical’. To strengthen its network in rural areas, the company started sales, servicing, and spare part outlets in several small towns and villages across the country. The company recruited local people as sales executives and trained them to market its products to rural consumers. In the fiscal year 2008-09, the sales of Hero Honda from the rural market amounted to 40 percent of the total sales compared to 35 percent during the fiscal year 2007-08. The case details the rural marketing strategies of Hero Honda and examines the potential of Indian rural market for two wheelers.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Discuss the growth strategies of Hero Honda over the years
• Analyze the rural marketing strategy of Hero Honda
• Examine the challenges faced by Hero Honda in the rural markets
• and Study the potential of Indian rural market for two wheelers.

Keywords

Hero Honda Motors Limited, Rural Marketing, Low-cost Motorcycle, Indian Two-Wheeler Market, Rural Network, Global Financial Crisis, Rural Disposable Income, Brand Value, Rural Demand, Rural Distribution Network, Promotion, Retail Finance, Growth Potential, Indian Rural Market