They’ve moved up two notches from our last year rankings. Here’s why...
Despite intense competition from arch rivals, Bajaj
and TVS, Hero Honda (HH) is today the world’s largest motorcycle maker in terms of volumes, with over 39.76% market share in India. Their strategy: to stay keenly focussed on the executive and entry level bike segments. In the last financial year, HH launched 8 products (New Karizma, GlamourFI, CD Dawn, et al) across segments. HH also made an important move by re-launching its CBZ brand. But, this company that first tasted success with its ‘fill it, shut it, forget it’ campaign, remains
far too focussed on the affordable segments. (HH is still a distant fourth when it comes to the premium segment). According to auto expert Tutu Dhawan, “HH is happy being an executive segment player, they don’t see much rational as a premium segment player.” Even in the executive segment, Bajaj and TVS are giving it tough competition. But Hero Honda is not giving up. Despite a poor growth of 11% in FY07 (as opposed to a sector growth of 13%), its Karizma is not about to disappear anytime soon. You don’t become number one for nothing, but hey, there is danger lurking in your backyard dude!
Despite intense competition from arch rivals, Bajaj
and TVS, Hero Honda (HH) is today the world’s largest motorcycle maker in terms of volumes, with over 39.76% market share in India. Their strategy: to stay keenly focussed on the executive and entry level bike segments. In the last financial year, HH launched 8 products (New Karizma, GlamourFI, CD Dawn, et al) across segments. HH also made an important move by re-launching its CBZ brand. But, this company that first tasted success with its ‘fill it, shut it, forget it’ campaign, remains
far too focussed on the affordable segments. (HH is still a distant fourth when it comes to the premium segment). According to auto expert Tutu Dhawan, “HH is happy being an executive segment player, they don’t see much rational as a premium segment player.” Even in the executive segment, Bajaj and TVS are giving it tough competition. But Hero Honda is not giving up. Despite a poor growth of 11% in FY07 (as opposed to a sector growth of 13%), its Karizma is not about to disappear anytime soon. You don’t become number one for nothing, but hey, there is danger lurking in your backyard dude!For complete IIPM article click here
Source:- IIPM Editorial, 2008
An IIPM and Management Guru Prof.Arindam Chaudhuri's Initiative
