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The secret behind Hero Honda's success

More important, this view of the market has become the cornerstone of Hero Honda's strategy. It now shapes the company's product development, placement and promotion moves. Hero Honda comes out with new motorcycles, variants and refreshes keeping the customer profile of each segment in mind.

This shows in the commercials which no longer talk of fuel economy (remember "Fill it, shut it, forget it?") or power alone. Thus, the advertisement for the Karizma (premium segment) comes with the punch line, "Always game." The ad for the premium segment Hunk doesn't talk of speed or power at all - the focus is on the looks even while standing. The CBZ Extreme comes with the promise, "Thinking is such a waste of time."

"Both the Hunk and CBZ Extreme are 150 cc bikes but talk to different customers," says Dua. "We have created very sharp positions for all our brands. You can't substitute one model for another in any advertisement." This is important. Hero Honda has a large portfolio of products (13 motorcycles and one scooter), so it has to create distinct position for each so as to avoid customer-confusion and cannibalisation of products.

Several automobile companies in the world put their products through a group of users before launch. It is standard practice. Hero Honda even puts all its advertisements through such groups.

"We don't move an inch without consumer feedback," says Dua. On behalf of Hero Honda, TNS talks to thousands of customers every month to monitor the brand health - share of mind (a lead indicator of share of market) and first-choice, cut-through (how the brand and its advertisements stand in the clutter), share of voice, loyalty indices and so on.

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