 "Honda navigates a new category")
It is neither a bike, nor a scooter, but for two-wheeler major, Honda, it is turning out to be a great learning in how to build a brand for young first-time urban commuters. Navi, popularly labelled as a 'scoobike', was unveiled during the Auto Expo in New Delhi in January this year and launched two months later, in April. It has sold, the company says, 10,000 units already and Honda is doubling up production capacities to meet growing demand for the product that has been priced at Rs 39,648 (ex-showroom Delhi). Marketing Navi has been a completely new game for the company as it has used the digital platform extensively to garner bookings, promote and even customise the product (lights, designs painted on the body and other such external features) to commuter tastes.
"We have never done that. Since it is a unique product, marketing has been done in a unique way and the target audience is young so we extensively used digital," Yadvinder Singh
Guleria, operating head (sales and marketing) & senior vice president, Honda Motorcycle & Scooter India (HMSI) says.
Navi, auto experts say, is in a category of its own. It does not quite ride with the scooters, nor does it stand with motorbikes. In terms of price too, it is more expensive than say a moped, but less than many entry-level bikes and scooters. For HMSI, Navi is a product that is out to create its own space. At the moment, the company says it competes with none.
Navi was created to help the company break into an untapped and largely neglected market. Young urban commuters, looking to travel fast and ride trendy are on every two-wheeler major's radar, but by creating a product exclusively for the category, Honda believes it has managed to grab their attention.
The reception for Navi has surprised many; the product already has a waiting list. Navi was developed from the ground-up by Honda's Indian unit and is, in fact, an acronym for New Additional Value for India. Guleria says, "Honda met a total of 17.1 million two-wheeler customers across the globe last year. India is the largest two-wheeler market in the world and our Indian operation became the largest volume contributor to Honda's global production in 2015. India is one of our priority markets."
Navi took 15 months, from concept to production to the market, the company says. It is a mash-up between a motorcycle and a scooter and the design, many believe, has played a critical role in winning over young commuters. The vehicle that is currently available in 10 Indian cities has sold 10,000 units over April-May but the company expects to double the numbers sold every month soon. And Honda, which is looking at selling around 5.8 million units overall in India by end FY2017, is betting big on its new products, especially Navi.
Guleria says, "We are delighted with the overwhelming response." He believes that unconventional design, attractive looks and endless possibilities of customisation have tipped the scales in Honda's favour. Almost 50 per cent of Navi buyers have opted for the customisation kit, indicating the desire among the young riders to stamp their own brand on their bikes.
Navi is built with an engine of 110cc capacity and that is another factor playing in its favour, many believe. Around 70 per cent of the two-wheelers sold in the country are fitted with engines upto 110cc, but youth in the age group of 18-24 are a minority in this segment.
Navi uses Honda's Activa platform and has been designed such that it appeals to riders across genders.
"We selected a design, which has made it difficult for people to bracket it as a scooter or a motorcycle. And this makes the product unique. Everything around Navi is fun and unique," says Guleria.
The marketing strategy has also helped drum up a buzz around the product. Teaser campaigns before showcasing the product at the Expo, targeted videos and campaigns on social media helped. As did the company's feedback mechanism where it invited suggestions and booking applications online. For instance, Guleria points out one of the ways in which customer tastes were woven into Navi. The vehicle has been launched in three colours, green, orange and red. This was a first for the company that typically sticks to conventional colour schemes, but the overwhelming response in favour of these colours changed their mind. Interestingly, the company says, there is a demand for Navi as a second or even third ride for the family that owns a bigger bike or an SUV. To tap into this demand, Honda will have to drive Navi into more cities and increase capacities. And it will need to do that before a competitor steps into the same space.
