Honda introduced Jazz as a premium hatchback. Around 8 Lakhs, Jazz was competing with i20 and Fabia, which are also positioned for the same target segment. Jazz, from Hondas' stable, had typical Honda quality and refinement, much above its competitors. The space the car offered was the best in its class. Along with the Honda ownership card, Honda would have expected the Jazz to sweep the market. But it did not happen.
Honda from a layman's view is a mini MUV. It looks like a downsized Innova type. But during the launch, the company positioned it against the hatchbacks. The size and dimensions did not support this claim along with the price. The price was way high for this segment. When the i20 is available with a fully loaded automatic transmission option for 8 lakhs, consumers were reluctant to pay almost the same price just for the brand Honda. This is evident from the sales figures available for the month of November 2009. When i20 did very well by selling 3582 units, Jazz managed just 546 units.
Zeroing down on the problem, it's a Positioning Vs Pricing war, where Jazz lost its plot. If Jazz was positioned as a hatchback, it should have been priced a bit low around 7 lakhs range. If the company wants to enjoy this premium, then it should have been positioned as a Mini MUV.
Honda has realised this and had offered a flat Rs 40,000 off on Jazz for Jan 2010. This is the first model from Honda to get this kind of an offer. Rather than getting into this discount game, Honda can manage its premium tag by revising the price for ever.
Honda from a layman's view is a mini MUV. It looks like a downsized Innova type. But during the launch, the company positioned it against the hatchbacks. The size and dimensions did not support this claim along with the price. The price was way high for this segment. When the i20 is available with a fully loaded automatic transmission option for 8 lakhs, consumers were reluctant to pay almost the same price just for the brand Honda. This is evident from the sales figures available for the month of November 2009. When i20 did very well by selling 3582 units, Jazz managed just 546 units.
Zeroing down on the problem, it's a Positioning Vs Pricing war, where Jazz lost its plot. If Jazz was positioned as a hatchback, it should have been priced a bit low around 7 lakhs range. If the company wants to enjoy this premium, then it should have been positioned as a Mini MUV.
Honda has realised this and had offered a flat Rs 40,000 off on Jazz for Jan 2010. This is the first model from Honda to get this kind of an offer. Rather than getting into this discount game, Honda can manage its premium tag by revising the price for ever.
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