Honda's Marketing Strategies in India

In September 2004, Honda Motorcycle and Scooters India Limited (HMSI), the wholly owned subsidiary of the Japan-based Honda Motor Company Limited (HMCL),1 launched its first 150cc motorcycle named 'Unicorn.' Priced at Rs 50,043 (ex-showroom price, Delhi), Unicorn had a four stroke 13.3 bhp engine with five gears. The new bike was available in five colours and was designed to achieve a speed of 0 to 60 kmph in five seconds. Unicorn was promoted with the caption "Be a wing rider." (Refer Exhibit I for a visual of Unicorn). Targeted at youth, Unicorn looked sportier than all the existing motorcycles in the premium segment and was pitted against Bajaj Pulsar, the leader with 75 percent market share in that segment. The other bikes in this segment were TVS Fiero, LML's Graptor and Hero Honda's CBZ (Refer Exhibit II for a comparison of leading motorcycle models in India). HMSI expected sales of 56,000 units of Unicorn in the first year of launch. The Indian two-wheeler industry, traditionally considered a scooter market, witnessed a gradual migration towards motorcycles from the 1990's. When HMSI was incorporated in late 1999, the Indian motorcycle market was booming, compared to the scooter market. Still, SI announced that it would initially concentrate only on the scooter market and would enter the motorcycle market in 2004, the year when the HMCL joint venture agreement with the Hero Group2 was due for revalidation. HMSI was credited for reviving the scooters market in India. Within three years of commercial operation, HMSI emerged as the market leader in the scooters segment. The company's scooter models included Activa, Dio and Eterno. Appreciating the efforts of the company, Veeshal Bakshi, an analyst with Financial Express, a leading business daily in India, said, "Honda has stirred the Indian automobile markets in many ways. Its wholly owned subsidiary Honda Motorcycle and Scooter India (HMSI) single handedly revived the two-wheeler scooter market, at a time when even the likes of Bajaj were unable to prevent the slide in scooter sales."

The history of HMCL could be traced back to 1946, when Soichiro Honda, a mechanical engineer, established the 'Honda Technical Research Institute' in Hamamatsu, Japan. The idea was to develop and later produce small two-cycle motorbike engines. Honda's first product, an A-type 50cc bicycle engine, was produced in 1947. In 1948, HMCL was incorporated with a capital of one million yen. Soon, the company started to design and produce lightweight motorcycles. Honda's first motor cycle, D-type two stroke 98cc, was produced in 1949. In the early fifties, the headquarters of the company was shifted from Hamamatsu to Tokyo and the company got listed on the Tokyo Stock Exchange. In 1959, the American Honda Motor Company Inc. was established in Los Angeles. The American venture started modestly with a staff of six and sales figure barely touching 200 motorcycles. In 1963, American Honda launched the "You meet the nicest people on a Honda" advertising campaign, which revolutionized the US motorcycle industry. A few years later, Honda established motorcycle assembly plants in Germany and Belgium. During the 1960s, HMCL expanded its product line by introducing light trucks, compact cars, out board motors, power generators and several new models of motorcycles and motor scooters.New production units were started in Thailand, UK, Malaysia and cumulative motorcycle production reached 10 mn units by 1968. During the 1970s, HMCL entered the Philippines, Indonesia and Brazil.

Reaction Honda is one of the successful businesses with a multiple branches to the different countries all over the world. It has different products and services which are offered all over the world. It is also the great initiator and dealer of the two-wheeler vehicles (motorcycles). As years pass by, Honda expanded its product line by initiating the four-wheeler vehicle (i.e. light trucks and compact cars), power generators and other motorcycle models. Through a good quality of products and services it offers, Honda still remains at the top or line of success.

Toyota Toyota was established in 1937 in Japan. First time it introduced its product Corona in the US in 1965. By the 70s, Toyota was the best-selling import brand in the US. During the 80s, it started manufacturing vehicles in the US. In 2006, it had globally become the second largest car seller and third largest car sellers in the US having more than fifteen percent market share. It is estimated that by 2008 it is going to be the number one car producer and seller both in the US and across the world. This profound success of Toyota is associated with its most proficient market strategy. The case of Toyota notably proves that how important is market strategy in the life of a company to be a market leader. Toyota has grown to a large multinational corporation from where it started, and expanded to different worldwide markets and countries by becoming the largest seller of cars in the beginning of 2007, the most profitable automaker along with increasing sales in, among other countries, the United States. Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. The Toyota Production System (TPS) is a production system steeped in the philosophy of the complete elimination of all waste and that imbues all aspects of production with this philosophy in pursuit of the most efficient production method. Toyota Motor Corporations vehicle production system is a way of making things that is sometimes referred to as a lean manufacturing system and has come to be well known and studied worldwide. This production control system has been established on many years of continuous improvements, with the objective of making the vehicles is in the quickest and most efficient way, in order to deliver these as quickly as possible.

Toyota has introduced new technologies including one of the first massproduced hybrid gas-electric vehicles, Advanced Parking Guidance System, a fourspeed electronically controlled automatic with buttons for power and economy shifting, and an eight-speed automatic transmission. Toyota-produced Lexus and Scion automobiles have ranked near the top in certain quality and reliability surveys.

Toyota is one of the largest companies to push hybrid vehicles in the market and the first to commercially mass-produce and sell such vehicles, an example being the Toyota Prius. The Prius has become the top selling hybrid car in America. This technology is the most widely tolled-out environment-friendly system in the automotive industry to date. a hybrid vehicle eventually. Reaction Toyota is one of the dealers and manufacturers of the four-wheeler vehicles all over the world. Its first emergence in the market was in the United States. The objective of the company is to offer the products and services with a higher quality and to deliver it to the customers at the shortest period of time. Today, this company still belongs to the line of successful companies in the world. Toyotas CEO has committed to making every Toyota