Hero Honda Pleasure Scooter Case

Case Study: Launch of the Pleasure Scooter

I. SUMMARY 

Hero Honda has been a major market player in the two-wheeler industry with heavy competition from Bajaj Auto and TVS Motors. Currently, HH has designed a light-weight, economical, and good mileage giving moped called Pleasure. HH designed this keeping the women segment in mind, which has a growing market for two-wheeler in the near future. But, the marketing team has a challenge of which strategy to consider for advertising the product. Should it be the majority youth segment or the niche women segment?

We considered the different factors involved in the decision making process of a two-wheeler purchase such as the influencer, product specification, expected usage form and finally who the purchaser will be. Keeping in mind the results from the market research and the psychographic analysis, we narrowed down to two major decisions – to market as a HH brand or the product, and whether to target the women segment separate from the youth segment.

In making these decisions, the most important factor was the message the advertisement conveyed and what results it would fetch. Based on the analysis, we recommend that HH should advertise Pleasure as a product for women with the tag “Why should boys have all the fun?” This will enable HH to position itself different from its competitors and will also capture the attitude of the modern, independent woman.

II. INTRODUCTION

The two-wheeler industry in India registered a growth of 12% over the years 2005-2006 and it was expected to grow higher in the near future. The company sold around 7.6 million units in a single year making India the second largest producer of two-wheeler in the world. The two-wheeler industry comprised of three main segments, motorcycle (84%), scooter (11%) and mopeds (5%).

Hero Honda, the world’s largest motorcycle manufacturer in 2001, has been well known for its low pollution, high mileage, and new-generation motorcycles. The company has been doing well in comparison to its competitors Bajaj Autos and TVS motors with an increase in sales from 48% to 50.9% for the 2004-05 financial year. But this increase in sales is due to only two brands of motorcycles, Splendor Plus and Passion Plus. These sales can be attributed to the vast 3000 touchpoints network of Honda, discount offers and HH Passport program.

Within the Indian context, the two wheeler industry experienced a lot of changes in the 80s. Not only did the demand change from scooters to motorcycles but the industry also became privatized.  HH stepped into the market 1984 and with motorcycles that outperformed scooters.

III. ANALYSIS

Based on a market research analysis, the consumer segment is broadly divided into two, men and women. Each of these segments have different needs to be satisfied from the two-wheeler transportation.

Men would want a vehicle that is sturdy enough to carry heavy load and family members. A much stronger and powerful vehicle like a 100cc Honda Activa, which has a metal body, seems optimum for this segment. But more and more young men tended to use light-body vehicle for its easy handling and mileage performance.