Marketing Strategies of Honda - In India *

Abstract:

The case discusses the marketing strategies of Japan-based Honda Motor Company Limited (HMCL) in India. Though HMCL had entered India way back in 1984 by entering into joint ventures with leading two-wheeler companies, the company established its wholly owned subsidiary - Honda Motorcycle and Scooters India Limited (HMSI) in October 1999. Within a couple of years after the launch of its successful products including Activa, Dio and Eterno, HMSI had emerged as the largest scooter company in India. The case describes in detail the product, pricing, distribution and promotional strategies of HMSI. It briefs the challenges faced by the company and its recent foray in the motorcycles business in India. The case also includes a brief note on the Indian two-wheeler industry describing the leading players and their marketing strategies.

Issues: » Understand the competitive landscape in the Indian two-wheeler industry and study the marketing strategies of Honda in particular. » Study the entry strategies of two-wheeler manufacturers in India. » Examine and analyze the marketing mix of Honda Motors. » Compare and contrast the marketing strategy of Honda with other leading players in the Indian two-wheeler industry including Bajaj Auto and Hero Honda Motors.

Questions for Discussion:

1. HMSI has emerged as the largest scooter company in India within a couple of years of launch of its products. What, according to you, were the major contributing factors for the success of HMSI in India?
2. Comment on HMSI's marketing mix in the Indian two-wheeler industry. Do you think HMSI had a perfect marketing plan? What measures do you suggest for accelerating the company growth in future?
3. In 2004, Honda entered the motorcycle business in India, in spite of the good performance of its joint venture - Hero Honda Motors. What do you think are the chances of success for HMSI in motorcycles business? With all the major players planning to launch scooters, do you think HMSI would be able to retain its dominant position in the scooter segment?

Key words:
Honda Motors, Indian Two Wheeler Industry, Foreign Two Wheeler Manufacturers in India, Marketing Two Wheelers in India, Marketing Mix, Positioning, Customer Value, Pricing , Distribution, Advertising Campaign and International Business

*Note : This case is a simplified version of a longer case study, and is intended for learners for whom English is a foreign language. The longer version of this case study (MKTG098) is available at: http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG098.htm