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