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4Ps Jazz rocking the blues? Honda is selling more in India than what it sold last year. And now Honda believes that India – and it’s new Jazz – will be able to take its growth forward dramatically. 4Ps B&M critically questions this ideology through the ‘ice’ of our very own hybrids, Pawan Chabra and Ratan Lal Bhagat
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Notably, the launch of the new Honda city was the main reason behind the success of Honda in this period of downturn. Takedagawa is quite upbeat when he tells us something we already know, “Since last November, when we launched the generation-next model of Honda City, our sales are gradually picking up.” But what gave us a surprise was his frank acceptance of his own target market segmentation being zero-recession proof, “We are focusing more on the so-called premium segment who are quite connected to the global economy.”
Is that why Takedagawa is moving towards what is now known as the ‘Swift’ segment (after Maruti’s unfathomable monopoly in that segment) with the launch of the Jazz? Yes, the launch of Jazz is one bet that Honda is extremely nerved up about. Though Honda is one of the strongest in the sedan segment, the nerves are tensed up because of the heat of the competition Honda is facing of late.
We have already witnessed the launch of Fiat Linea and Skoda Superb’s latest model in the country competing with the Honda City and Honda Accord respectively. Auto expert Murad Ali Baig adds further, “The sedan segment will only get competitive in the coming times making the environment more competitive for Honda.” Given this, can Jazz be a runaway success just because it has got great sales support, a new design and costs around Rs.5.5 lakhs? Uhh, there lies the problem. One cannot assure Jazz’s success in the Indian market blindfolded as this hatchback will face a stiff competition from Skoda Fabia and the recently launched Hyundai i20. Worse, where the Swift rules, the Swift, umm, rules!
With the depreciation of the Indian rupee ensuring that Honda’s input costs have increased manifold (25% of their components are imported), Honda cannot simply ‘hope’ their cars will sell, especially when the competition is Maruti, which is a company that has not been known to take any prisoners. What it requires now for Honda is to understand that in India, if marketing has to work, then what also works is understanding that the Indian customer responds completely different in buying behaviour within different segments. That means that the strategies that they used to sell their Citys, Civics and Accords may definitely not get the ‘rice paddy’ home on time this time. By the way, Honda means rice paddy in Japanese. No, the coke and the junk food have not given us a high yet. And yes, we’re still waiting for the Warren effect to hit us (sleep eating junk food, wake up a rich man...).
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4Ps
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