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Price will be a very deciding factor even for the success of the
new Honda 150, even though it is from Honda. If Honda keeps the
price way above the competition and also have a waiting period
of 2-3 months (like they still have for Active and Dio), it may
hamper the success of the bike. Keeping the price high may also
result in losing the market like the Kinetic Honda did to Chetaks
and NV's inspite of being a superior product.
If Karizma been sold for Rs. 65000 on road (it is 61000
for P180 in Pune), P180 would have never stood a chance. But it seems
HH never got the right pricing strategy. They always seem to over
charge when they enter the market, only reduce when there is
competition or low sales. Otherwise both CBZ and Karizma are extemely
good bikes and would have given exteme competition to others, had
it been prices sensibly.
At its peek in the late 80's and early 90's Kinetic Honda was the
costliest scooter, which was also a major reason for it's low sales,
though being highly superior to its nearest competitors like Chetak
and NV. (In 1993 Kinetic Honda costed 28000, Chetak 20000 and LML NV
23000, on road). It seems when Honda lauched Activa and Dio, they
again lauched fantastic products but kept the price less than
the competition, and they have captured the market. A similar strategy
will be required this time from both HMSI and HH if they need
to stay in market as leaders.
Few people may pay high premiums on Honda products if they are
priced way above the competition, espacially when the competitors
are offering same quality nowdays(Like CBZ Vs P150) unlike
to 80's (Chetak vs Kinetic Honda)
new Honda 150, even though it is from Honda. If Honda keeps the
price way above the competition and also have a waiting period
of 2-3 months (like they still have for Active and Dio), it may
hamper the success of the bike. Keeping the price high may also
result in losing the market like the Kinetic Honda did to Chetaks
and NV's inspite of being a superior product.
If Karizma been sold for Rs. 65000 on road (it is 61000
for P180 in Pune), P180 would have never stood a chance. But it seems
HH never got the right pricing strategy. They always seem to over
charge when they enter the market, only reduce when there is
competition or low sales. Otherwise both CBZ and Karizma are extemely
good bikes and would have given exteme competition to others, had
it been prices sensibly.
At its peek in the late 80's and early 90's Kinetic Honda was the
costliest scooter, which was also a major reason for it's low sales,
though being highly superior to its nearest competitors like Chetak
and NV. (In 1993 Kinetic Honda costed 28000, Chetak 20000 and LML NV
23000, on road). It seems when Honda lauched Activa and Dio, they
again lauched fantastic products but kept the price less than
the competition, and they have captured the market. A similar strategy
will be required this time from both HMSI and HH if they need
to stay in market as leaders.
Few people may pay high premiums on Honda products if they are
priced way above the competition, espacially when the competitors
are offering same quality nowdays(Like CBZ Vs P150) unlike
to 80's (Chetak vs Kinetic Honda)
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