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Hero Honda And Bajaj Heading At The Premium Segment
The report from SIAM mentions that Hero Honda is on the descending phase in its market hold with 54% during April-Feb in the current fiscal which was 59%. In the previous and 59% in the year previous to that. In the premium segment the Hero has fallen its hold to 13% in the said period against 29% in the 2010 financial year and 34% in 2009 financial year. The company has slipped its share in the mid-segment to 71% in the current fiscal from 75% in the last fiscal.
An analyst attached to Fortune Financials said in the two wheeler segment the premium segment is the most beneficial one as the segment has always blessed the suitable products. He said that the profitability ratio between Bajaj"s Platina and the premium Pulsar is 1:8 amidst the desire from the players in the segment to rule the rooster in the high end segment.
The plans for Hero Honda to get in to the premium segment begins with installation of special dealer zones to enable segregated brands. In this move there will be exclusive facilities for premium bikes aided by intensified R&D which will envisage necessary infra for different marketing divisions. In another move towards the premium segment, Hero Honda is entering into the used-bikes marketing for the first in the history of two wheelers. To take advantage of the on going World Cup Cricket, the company has unleashed advertisement campaigns for its Karizma ZMR. Also on the move are the repositioning of the mid-segment bikes like Splendor Pro and Passion Pro by adding certain features. Moreover the Hero Honda has come out with premium features like electric start replacing the conventional kick-start, mag wheels replacing spoke wheels and refined outlooks for the mid-segment bikes.
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