REPOSITIONING OF HONDA CITY

CASE STUDY

REPOSITIONING OF HONDA CITY

Honda city is a mid size car model for HCSL. its sold 60000 units since five years. Its new model cars price is HIGH. 10,338 units of sales in 2003. Three models cars exi 6.67lakhs ,gxi 7.07lakhs,cvr 7.67lakhs. It was globally successful in the civic platform. Mid size cars competitors are maruthi esteem, daewoo, cielo,and ford , escort and higher end the lancer and opel astra. High branded cars benz, bmws . Honda filled a gap between positioning of these segment. Honda designed more features and a better design than the low end cars and lesser price than the high end offerings.

REPOSITIONING OF HONDA CITY

New entrants at lower end Hyundai accent , ford ikon and tata indigo and higher end Hyundai sonata ford mondeo ,Mercedes c class and Honda accord which weekend the position. So that they changed the engine capacity (77)bhp then the older model (90-110)bhp, reduced power ,increased efficiency, increased mileage. Car design made slicker according to customer preferences. Car name is fit aria. Thailand is the manufacturing plant. Company has localized its production up to 70% its depends on Thailand supply gearboxes engines and other parts from Japan. Through this free trade agreement that exit between India and Thailand. It succeed its new model.

REPOSITIONING OF HONDA CITY

Q1) Do you think the company move to reposition the car on the
fuel efficiency and price platform will work ? At 1999 14?%- 2003 10% Honda city market share was declined. Price was high and also new models has a raised. Competitors providing cars at less price with same features what Honda giving to customers. Due to higher end of the mid sized segment, skoda Octavia ,and chavrolet optra are new entrants at luxury segment Hyundai sonata, ford mondeo,mercedes-c. Company reduced the price in lower end models. changed the engine and car have been completely remodeled. Lowered the power increased the fuel efficiency ,made slicker Fit aria newer version.

REPOSITIONING OF HONDA CITY

Q2)examine the reasons behind Honda move to re-launch its highly successful Honda city model with complete make over and a price cut of as much as 1 lakh? Honda globally successful in civic platform. Lower mid sized car segment competitors are maruthi esteem,daewoo cielo and ford escort. Higher end lancer and opel astra were dominating the scene Honda filled the gap between them. It design more features and better design than low end cars and a lesser price than the high-end offerings.

REPOSITIONING OF HONDA CITY

THROUGH THIS IT REPOSITIONING THE BRAND