Honda has always been like the Intel of the automobile market. It has had a steady stream of products coming out of its shop which has meant that one time Honda owners stayed with them while looking for an upgrade or a replacement. The City platform has seen a steady stream of variants and so have the Accord CRV.
But by slashing the price of its Hybrid Civic by Rs 8 Lacs- they had not only grabbed the attention but managed to make sales in this stagnant market. Only a day before the major auto players (incl 2 wheelers like Bajaj) had cribbed at a forum as to how even their Diwali inventories were lying idle.
Am sure the Civic hybrid still makes money at the Rs 13L tag, but the fact remains they have been able to sell 95 cars in one day and many more would follow. Which means that they have created a much bigger market at lower margins. A great strategy to keep yourself alive – to ensure that your factories keep working, that there are no idle inventories lying in the chain. And all of this achieved while saving on the marketing spends. Without a single ad, Honda Civic Hybrid’s price tag is now known to most metro residents.
I think others should take a cue and come up with such steps to milk the market and fuel the demand for their products/services.