Does Brand Value Matters?

[powerpacked]

Recent slash down of prices for Honda products


Is the outcome of low sales.

• Which is mainly due to reliability issue (recall of defective cars)
• Overpriced products
• Availability of richer products with comparative lower price tag (Refer here Linea, Manza, and Fiesta etc)
• Hike in fuel price (no diesel option)

Hence here Indians refuse to buy Honda products.
Instead of putting money in branding exercise they have come with an option to sell their product at heavy discounts.

Isn’t it a message passed to manufacturer about their BRAND value?

 

[drifter]

Recent slash down of prices for Honda products


Is the outcome of low sales.

• Which is mainly due to reliability issue (recall of defective cars)
• Overpriced products
• Availability of richer products with comparative lower price tag (Refer here Linea, Manza, and Fiesta etc)
• Hike in fuel price (no diesel option)

Hence here Indians refuse to buy Honda products.
Instead of putting money in branding exercise they have come with an option to sell their product at heavy discounts.

Isn’t it a message passed to manufacturer about their BRAND value?

Unfortunately it isn't. This is more likely a desperate attempt of Honda to get out of trouble.

 

[powerpacked]

Unfortunately it isn't. This is more likely a desperate attempt of Honda to get out of trouble.

Whats that trouble

 

[drifter]

Whats that trouble

Hponda is in deep finacial crisis. The only thing that keeps Honda afloat is the motor bike production.

Recent developments in Japan have increased the problems.

 

[Umang]

We guys crib too much about non-indian companies giving us a raw deal.

Here is an example:

Remember the Versa/Eeco?

It is now being launched in Japan, and we got it ages back.
Suzuki puts Every (Versa/Eeco) EV van on sale in Japan

hey dont forget suzuki is japaneese company..obviously they will be first to get whatever they make..that blog says they have got versa EV not normal versa!!

The Nano has got no brand value. Why?

I hate the guts of Mercedes. People rave over them. Very expensive and not all that comfortable. I have done many a times trips of 1600km a day (Vienna London). I had the choice of going in a Mercedes or a Fiat Uno Mk1 (1301cc). I preferred the Uno. It was more fun and more comfortable.

I have got an Alfa 33 16v, which I love to bits for its handling and performance. I also have 4 Fiat Cinquecentos and one Fiat Seicento and get another Seicento this week. All of them are not standard.

With the one that was tuned the highest (at the moment in my workshop for more power) I used to chase BMW 330s down the motorway. I only chase the BMW owner's because of their brand consciousness. They hate to be 'humiliated' by a motorised shopping trolley. Brand over conscious?

Being ripped off is everybody for falling for brand names rather then looking at the value of the goods. But blaming the manufacturers on it and claiming that they rip off the Indians is outright wrong. They only sell what people are willing to buy. And if anyone needs to have an overpriced status symbol then this is a case of ripping oneself off.

buddy I agree with you with brand value thing and crticism on merc but I cant agree that nano has more comfort than merc!!

 

[AMG]

The way this comes over to me sounds like you want to victimise yourself. Whether you, your fellow Indians or any other person gets ripped off is in their own hands.

Car manufacturers are not a charity. They are in the market to make money.

If you want value for money then buy a Nano. But most people in India sniff at it because it is the cheapest car in the world and does not fit the idea of a status symbol. This attitude is beyond me. I am a German by birth with a base in Mumbai. Currently I do not have a car in India, but when I have one (or more) a Nano is on the list. I have test driven it (and I mean test driven it, which left the deale representative with an unpleasant feeling) and love it. It handles much better than I thought according to the biased reports.

The Nano has got no brand value. Why?

I hate the guts of Mercedes. People rave over them. Very expensive and not all that comfortable. I have done many a times trips of 1600km a day (Vienna London). I had the choice of going in a Mercedes or a Fiat Uno Mk1 (1301cc). I preferred the Uno. It was more fun and more comfortable.

I have got an Alfa 33 16v, which I love to bits for its handling and performance. I also have 4 Fiat Cinquecentos and one Fiat Seicento and get another Seicento this week. All of them are not standard.

With the one that was tuned the highest (at the moment in my workshop for more power) I used to chase BMW 330s down the motorway. I only chase the BMW owner's because of their brand consciousness. They hate to be 'humiliated' by a motorised shopping trolley. Brand over conscious?

Being ripped off is everybody for falling for brand names rather then looking at the value of the goods. But blaming the manufacturers on it and claiming that they rip off the Indians is outright wrong. They only sell what people are willing to buy. And if anyone needs to have an overpriced status symbol then this is a case of ripping oneself off.

Anyone can beat the hell out of a 50 lakh car driven with a souped up swift, if that is what you are trying to say.

Also I have seen that you have made a couple of outrageous statements, without any statistical backing.

 

[drifter]

Anyone can beat the hell out of a 50 lakh car driven with a souped up swift, if that is what you are trying to say.

Of course, everybody can, but this was not my point. My point was that a lot of the BMW owners (amongst other premium brand owners) can't take it when much lower rated cars outperform them. For them it seems to be worse then knocking dents into the body work, which has got something to do with their brand image thinking.

Also I have seen that you have made a couple of outrageous statements, without any statistical backing.

It is rather lengthy and tiring for most readers if everything has to be backed up right there and then. Please, feel free to ask me for the individual proof of my statements where ever you might have doubts.

 

[AMG]

The Nano has got no brand value. Why?

If an autorick suits my needs perfectly, would I buy it?

Honda is in deep finacial crisis. The only thing that keeps Honda afloat is the motor bike production.

Honda is in trouble? Why is it that nobody in this world, no media, no newspaper knows it?

 

[powerpacked]

Hponda is in deep finacial crisis. The only thing that keeps Honda afloat is the motor bike production.

Recent developments in Japan have increased the problems.

We’ll just keep aside that Honda is in trouble or not
But the point remains open here.

What’s the reason behind drop in sales – (India specific) as they are major players in India.
How they are going to earn more money by reducing the price.

If yes then it’s a classic example of looting.
(By reducing price if Honda is going to book more profit then think with higher price along with high number of sales how much profit figure they have earned from INDIA)

How to be assured that there is not compromise in terms of quality behind this price drop.

 

[type-r]

Honda is infact in very deep trouble. Because of this financial problems, for the first time, Honda has launched only one type of New Civic for whole world. Normally it has different for UK and US markets. Drifter is right, the motor bike production is keeping Honda alive currently.

 

[AMG]

We’ll just keep aside that Honda is in trouble or not
But the point remains open here.

What’s the reason behind drop in sales – (India specific) as they are major players in India.
How they are going to earn more money by reducing the price.

If yes then it’s a classic example of looting.
(By reducing price if Honda is going to book more profit then think with higher price along with high number of sales how much profit figure they have earned from INDIA)

How to be assured that there is not compromise in terms of quality behind this price drop.

Expensive Petrol + No diesel = Low sales.

 

[drifter]

If an autorick suits my needs perfectly, would I buy it?



Honda is in trouble? Why is it that nobody in this world, no media, no newspaper knows it?

Read this report:

Editorial: The Real Honda is in Real Trouble | The Truth About Cars

This article was written long before the earthquake and shows a lot of the problem development.

The split from Hero is documented, which does not help the situation. Honda has just reduced prices on several models in India to generate more sales.

This is another of quite a few reports:

Honda U.S. sales tumbled again in January | Reuters

 

[powerpacked]

Expensive Petrol + No diesel = Low sales.

Sir, I have mentioned the same in earlier post.

• Which is mainly due to reliability issue (recall of defective cars)
• Overpriced products
• Availability of richer products with comparative lower price tag (Refer here Linea, Manza, and Fiesta etc)
• Hike in fuel price (no diesel option)

 

[drifter]

If an autorick suits my needs perfectly, would I buy it?

I would like to get the post about the Nano in the right context, where you replied with the above.

At home we had 3 911s, A8s E and S class, Alfas and Fiats. I am an Automotive engineer who has driven and tested in excess of ten thousand vehicles from 50cc 2-wheelers to 44 ton artics and special vehicles as well as race cars. I have built race engines and developed performance tuning components and produced some of them.

I am driving cars for 2 reasons. There more important one is driving in order to get from A to B to do the necessary daily things.

The other reason is for fun.

Having fun is for me not a question of brand value. Driving the Nano was a lot of fun.

If fun is dictated by what status symbol I have to use or what the brand value has to be then I do not want to have fun anymore.