Rural Vertical to help Honda boost sales in India
Honda Motorcycle and Scooters (HMSI) plans ‘rural vertical’, a new strategy with which they hope to embark on a new direction to flank market leaders Hero MotoCorp. Hero MotoCorp has a deep rural market distribution setup which has stood them in good stead and Honda would also like to follow the same path to success.
Concentrating on rural vertical will not only cater to the rural network but also to rural communication and receipt of feedback from this segment of buyers which will in turn be passed on to the company’s R&D. This approach to tackling rural areas is completely different from its urban strategy. The concentration on rural markets is being felt right upto its top level with Global President and CEO of Honda Motor Takanobyu Ito visiting India in early April to open a zonal office in Varanasi. He travelled 150 kms into the rural areas of UP, Varanasi, Agra and Jaunpur as part of this strategy.
Rural markets account for 30-33% over overall sales and with this added concentration of rural vertical, rural share is expected to receive a boost to 45% over the coming months. 15 personnel will be appointed to oversee strategy, communication and implementation of this rural vertical which the company expects to be a key lever of growth in the months ahead.
via Economic Times
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