Hero Honda's Rural Marketing Initiatives in India

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Case Details:

Case Code : MKTG219
Case Length : 15 Pages
Period : 2007-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Hero Honda Motors Limited.
Industry : Automobiles
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

Munjal said that although the new motorcycle would be made available at a low cost, the company would not compromise on its quality and safety. He said, "Whatever we bring should certainly have a significant price advantage. Just because we have an enhanced rural focus, it does not mean that rural customers can be offered products which do not stand the test of performance or durability. In fact, rural customers need sturdier vehicles (than urban ones)."⁷

Started in 1984, Hero Honda was the result of a joint venture between Japan-based Honda Motor Company Limited (HMCL) and the India-based Hero Group.

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Hero Honda started its journey with the launch of Hero Honda CD-100 motorcycle, the first four-stroke motorcycle to be launched in the Indian market. By the early 2000s, Hero Honda had firmly established its presence in the Indian two-wheeler market.

In late 2007, Hero Honda started paying importance to expanding its presence in rural India. It felt that rural India had the potential to be a large market for two-wheelers (Refer to Exhibit I for a note on the Indian Rural Market)...

Excerpts >>

7] Sindhu Bhattacharya, "Hero Honda Working On a 'Nano' Bike'," http://www.dnaindia.com, April 23, 2009.

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