Hero Honda was quick to realise that there was a huge opportunity waiting to be tapped. A rural vertical was set up under Dua some time in 2007. Five hundred sales representatives were taken on board for the mission Har gaon, har angan (every village, every courtyard.)
These representatives have been given work tasks and not sale targets - they need to meet potential customers and opinion leaders in villages. So far, Hero Honda has mounted three two-month long "waves" through these men. Each wave has resulted in additional sale of 15,000-16,000 motorcycles. Farmers, Hero Honda knows, have money in their pockets twice a year when they harvest their crop - once around May and June and then around October and November. These "waves" are mounted just before the harvest so that Hero Honda is on their radar screen when they have cash in hand.
It also realised that one reason customers in these markets choose Hero Honda over others is the easy availability of spares and authorised mechanics. As a result, in the resale market, it commands a premium over rivals. This makes Hero Honda a preferred brand, claims Munjal.
Thus, the company decided to ramp up rapidly its touch points with customers - showrooms, service centres and so on. From 2,000 in 2006, the number has risen to 3,500 now. Munjal says the plan is to add at least 500 every year. Most of these will be service points.
"Customers can travel over long distances to buy a motorcycle but not for service. A customer can take his motorcycle for servicing four or five times a year," adds Dua. Many of these touch points can start as a service centre and over time become a sale centre.
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