Hero Honda's Rural Marketing Initiatives in India


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : MKTG219 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Rural Marketing
Case Length : 15 Pages
Period : 2007-2008
Pub Date : 2009
Teaching Note : Not Available
Organization : Hero Honda Motors Limited.
Industry : Automobiles
Countries : India

Abstract:

The case discusses the rural marketing initiatives of Hero Honda Motors Limited (Hero Honda), a leading two wheeler company in India. Hero Honda, which was the result of a joint venture between Japan-based Honda Motor Company Limited (HMCL) and the India-based Hero Group, began its operations in 1984. In late 2007, Hero Honda started putting emphasis on the rural markets. In December 2007, the company started a separate 'rural vertical'. To strengthen its network in rural areas, the company started sales, servicing, and spare part outlets in several small towns and villages across the country. The company recruited local people as sales executives and trained them to market its products to rural consumers.

In the fiscal year 2008-09, the sales of Hero Honda from the rural market amounted to 40 percent of the total sales compared to 35 percent during the fiscal year 2007-08. The case details the rural marketing strategies of Hero Honda and examines the potential of Indian rural market for two wheelers.

Issues:

Discuss the growth strategies of Hero Honda over the years.

Analyze the rural marketing strategy of Hero Honda.

Examine the challenges faced by Hero Honda in the rural markets.

Study the potential of Indian rural market for two wheelers.

Contents:

  Page No.
Introduction 1
The Indian Two Wheeler Industry 2
About Hero Honda 4
Hero Honda's Rural Thrust 6
The Road Ahead 9
Exhibits 11

Keywords:

Hero Honda Motors Limited, Rural Marketing, Low-cost Motorcycle, Indian Two-Wheeler Market, Rural Network, Global Financial Crisis, Rural Disposable Income, Brand Value, Rural Demand, Rural Distribution Network, Promotion, Retail Finance, Growth Potential, Indian Rural Market

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