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Undoubtedly it has been the 100cc Splendor that helped Hero Honda reach the pinnacle of success. Splendor’s engineering was very similar to the CD100 platform – a bike for the fuel conscious. Though, the bike was in line with the ‘fill– it-shut-it-forget-it’ add campaign, which gave greater emphasis to fuel economy and helped establish HH as a credible brand; the bike offered something which was not very synonymous with HH and that was ‘style’. After the launch of the CD100 and Sleek models, HH finally understood the market realities prevailing in the Indian market. Through close market study & analysis HH understood consumer requirements and perfected its already fuel efficient products. Instant success of Splendor meant that Hero Honda grew at a phenomenal 450% over a span of ten years, from 1989 to 1999.

The smarter consumer was feeling insecure about rising fuel bills and the consumer now wanted a motorcycle, which offered decent power delivery but most importantly had the inherent quality of saving some green back. Hero Honda, as a matter of chance, had already established it self as a manufacturer of fuel efficient bikes and had perception in its favour.

The Hero Honda Splendor right from the day of its inception has been a super seller and enabled the parent company to explore never before levels of production dynamics. The Japanese connection gave Hero Honda access to varied Honda technologies, indigenization of which gave very efficient combinations of fuel efficiency, affordability and reliability. Now Hero Honda simply has to maintain the momentum it has accumulated throughout these years of learning and expansion. Now that the competition has become more fierce, Pawan Munjal, MD & CEO, Hero Honda has already laid down his next wave of attack, as he says, “As we ride into the future, we expect to pursue growth opportunities systematically and aggressively.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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