Thursday, August 18, 2011

Hero MotoCorp The rise of a HERO

Re branding exercise is not the cup of tea for every organization. In India we have seen big brands revamped their brand identity that led to huge expenses on communication strategies to establish new brand identity among existing and new markets. Canara Bank, Hutch, Ceat tyres are few examples.


These are few conditions which strives a company to change their brand identity:


1. JVs - Hutch, Hero Honda
2. Brand expansions- Canara Bank
3. Market expansions- Airtel
4. Global Image- Star Bucks
5. Logo element- Ceat Tyres


Hero Honda, established in 1984 is the joint venture between Hero cycles and Honda motors co. in which Honda had 26% stake. Recent issues between these two partners regarding free sharing of technology from Honda till 2014 and merging of spare parts business with Honda Motors India (HMI) led to split of JV.

From Dhak Dhak Go to Hum Mein Ha Hero
After the split, Hero Honda has invested Rs 150 crores for smooth transition from "dhak dhak go" to "hum mein hai hero". Hero Honda has selected Law and kenneth advertising agency as their creative partner and Wolff Olins brand consultancy firm which has designed the new logo.

Watch the latest ad of heromotocorp here

Hero MotoCorp- Legacy and Challenges
To carry the brand forward, Hero MotoCorp has the legacy of a brand of repute and having enough brand equity in Indian market. In support of this, consider these stats:

- Hero Honda has 55 % market share in two wheeler segment
- Market share of Hero Honda is greater than the combined market share of second and third nearest competitors. 
- Hero Honda sells and provide services through a network of over 3500 customer touch points, which includes dealers, service centres and stockists located across rural and urban India
-  Hero Honda sells 5 million bikes every year.
-  Passion and splendor are the highest selling models. ( 3 lakh units per month)

There is no doubt that Hero Honda has a strong hold in Indian Market and the brand lives in the mind, heart and nerves of an Indian consumer but what about Hero MotoCorp?

As a marketer i think initial impressions are encouraging and the decision to not to wait for 2014 to avoid sudden shift in branding is a smart strategic move but one challenge company might face is from the rural market from where 50% of the 5 million bike sales comes from and establishing new brand identity without "Honda" would be a challenge.

Your comments are welcome

Dharmendra pandey
dpandey82@gmail.com

2 comments:

  1. very rightly said..from my perspective HERO HONDA was always very patriotic and always used INDIAN theme to go about marketing strategies. now this has really helped them as MARUTI in the car segment did. now they have re branded but have not left there core strategy to connect not only to consumers but also to investors because that is what complete business cycle is. Indeed there sales figure suggest and reflect the same-


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