Honda trying what TVS failed to do...

Honda Motorcycle and Scoorters India (HMSI) has officially announced the launch of its new 110cc motorcycle in the Delhi Auto Expo in Jan 2010. The company who is a technical partner in Hero Honda is a niche player catering to the premium motorcycle segment through Unicorn. Though the company has a commuter segment brand Shine 125cc, now it is entering the entry level motorcycle segment with its 110cc. But the company had made a clear strategy by creating a new segment, which will avoid the head on with its sister brands Passion and Splendor. The new motorcycle is targeted at youth who wants style at the entry level. Also the pricing is expected to be a premium of 10% compared to HeroHonda's Passion and Splendor. This creates a clear differentiation in the already cluttered entry level segment. A product for this segment was already in line with TVS as STAR Sport, which TVS failed to capitalise on. Though the product hit the showrooms, it never took off from there as the company failed to identify the target for the product. HMSI now has an open opportunity to create a winning brand.