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Honda City: Strategic Repositioning

Honda's sales of the City model had declined from 14% in 1999 to 10% in 2003 as newer competitors entered the market offering similar features at lower prices. Honda repositioned the City by reducing its engine capacity and price, increasing fuel efficiency, and completely redesigning the car's appearance to better meet customer preferences. This repositioning succeeded as Honda aimed to strengthen its position between the lower-mid and higher-end vehicle segments through improved efficiency and a more competitive price.

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2K views6 pages

Honda City: Strategic Repositioning

Honda's sales of the City model had declined from 14% in 1999 to 10% in 2003 as newer competitors entered the market offering similar features at lower prices. Honda repositioned the City by reducing its engine capacity and price, increasing fuel efficiency, and completely redesigning the car's appearance to better meet customer preferences. This repositioning succeeded as Honda aimed to strengthen its position between the lower-mid and higher-end vehicle segments through improved efficiency and a more competitive price.

Uploaded by

api-26838522
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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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

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