Hero Honda Splendor New Product Introduction Strategy Marketing Essay

In 1994, when Hero Honda was establishing luster it was non a company of great being with merely about 200,000 units manufactured a twelvemonth ( IIPM ) . Hero Honda was non basking a high market perceptual experience as shown in their mileposts achieved ( table.1 ) .Though success rates vary, the current estimations gives us a clear suggestion that about 60 % of the new merchandise will win once they are introduced into the market ( Griffin,1997 ) . But luster was their new merchandise that changed the whole scenario one time at all for Hero Honda doing it the universe ‘s No-1.This was their victorious scheme. Achieving a high success rate will non merely be dependent on the figure of activities that compromise house ‘s new merchandise processes, but besides how will the activities be carried out ( Cooper,1979, 1983 ) .

After the launch of their first theoretical account of CD -100 and other sleek theoretical accounts they underwent a closed market study. Evidence tells us that market study is past oriented instead than future oriented ( Lorenz,1986: Edsale, 1991 ) . They understood the consumer ‘s demands clearly and perfected its already fuel efficient 100cc engine to offer more torsion and power and fitted into a contemporarily designed luster ( IIPM ) . The most of import parts formal NPD procedures are suggested to give includes improved success rates, higher client satisfaction, and meeting clip, quality and cost aims ( Cooper,1993, p. 256 ) . Hero Honda grew at phenomenal rate of 450 % over a span of 10 old ages ( IIPM,9 ) . Today the company controls a 52 % market portion of the entire Indian two Wheeler market and the individual largest two Wheeler fabricating company in the universe and excellently all because of one product- Splendor ( IIPM, 9 ) . Once the Black Marias of consumers are won, the head follows constantly ( Feig, 1997 ) .

Hero Hondas biggest success factor is to lift in its market portion from 52 % to 57 % during the liquidness twelvemonth 2008-2009 when finance was non easy either for its clients nor its traders ( Business Today,2010 ) . In the twelvemonth 2007, Hero Honda produced 3 million two Wheelers that ‘s more than 342 motorcycles an hr or 6 per minute ( Business Today, 2007 ) .These factors show their fabrication scheme matching to their high gross revenues. The participants in the universe two Wheeler markets could be at one clip be categorized into two groups: the three planetary Nipponese giants: Honda, Suzuki and Yamaha and the local niche participants. The Indian two Wheeler industry made a little beginning in the early 1950s, when Car Merchandises

In the survey of consumer behavior which was done on the twelvemonth 2004 and 2008 which showed the company ‘s parts to the in-between category households in India and the Reliability of the consumers towards the company as shown in figure ( 1 ) ( 2 ) ( 4 ) and ( 5 ) . Harmonizing to Leo Brunett ‘s trade name belief systems, the cardinal component for selling success are ‘brand trusters and ‘brand bonds ‘ . The stronger is the belief, the stronger is the trade name ( Ramarao, BSV,2009 ) . Thus the trade name Splendor proved them as a success key.

In this instance survey where the Motorcycle Splendor proved critical for the company ‘s Business public presentation with its high gross revenues, Market portion and therefore its new merchandise debut scheme is ‘ Differentiated scheme ‘ . As discussed above Hero Honda is characterized by high degrees of engineering, aggression, merchandise tantrum, market orientation and competitory advantage Harmonizing to Miles and Snow, Hero Honda proved as a Analyzer ( Business Strategy ) as they are frequently able to convey superior merchandise to the market by carefully supervising the actions of major rivals and they besides conducted market study before presenting luster which has crossed the 11 million landmark of gross revenues out of the entire 25 million Hero Honda.Motorcycles. But in Reality they are both Prospectors and Analysers, as in this instance analyze its evident about their advanced function in establishing Splendor which changed their market topographic point and their future response of new technological versions as shown in mileposts achieved of Splendor proves them as Prospectors.

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