Saturday, February 23, 2013

Brand Update : Honda Jazz RIP ( 2009-2013)

According to news-reports  Honda has decided to put curtains to their premium hatchback Honda Jazz. Honda Jazz launched in 2009 was the most expensive petrol hatchback available in the Indian market. The brand was priced in the range of Rs 8- 9 Lakh which was at par with lot of mid-segment sedans.
Although the brand had impeccable Honda Quality, the aggressive pricing made consumers give a luke-warm response to this brand. Only the hard-core Honda fans who wanted exclusivity opted for Jazz.
In 2011, Honda decided to rationalize the pricing of Jazz and reduced the price by almost Rs 1.5 lakh. Despite the price -drop, Jazz was quite expensive and the move was little too late. 

The shifting of Indian consumers to diesel cars coupled with new launches and offers from quality brands made Jazz less relevant to Indian consumer. The diesel-focused Indian car market has been giving lot of problems for  Honda . 2013  will see Honda entering the diesel car market with its Amaze brand. Honda is also rejigging its product offering and Jazz did not fit into the new plans. Although reports suggest a relaunch of Jazz in 2014, the brand is now dead for all practical purpose.

Things would have been different if diesel and petrol prices were the same in India. Had it been like that  Jazz would have found some takers . But the huge price differential between diesel and petrol is giving nightmares to companies like Honda who was late in developing diesel engines for India.  I thought that Jazz would come with the diesel version once Amaze is launched but surprisingly Honda decided to kill this brand and concentrate on the new launch.

Jazz is a lesson for marketers who in their aggression turn a blind eye towards value. Brands should first convince the customers about the value  it offers and then take pride in that. But being aggressive just because there is a well respected brand name is a big mistake. 

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  1. Vivek Bhaskaran11:45 AM

    As per reports, it might just not be an RIP yet ( It says that the stop in production is temporary and that Jazz would be relaunched sometime in 2014. If that happens, Jazz would find itself sitting pretty in the Honda line up along with Brio, Amaze, Civic Hatchback, City, Civic, Accord and CR-V. The whole equation would change. It will also buy some time to thread a whole new strategy for the company.

  2. As a possible buyer, the price drop of Rs 150,000 is a very disturbing. Imagine the plight of the poor bloke who bought this car only to realise a week later that the price dropped considerably. He won't be happy and will tell others, and everyone watching from a distance won't want to consider the product fearing another price drop.

    Once again, Marketers haven't learnt from their mistakes. Remember Daewoo 15 odd years ago? They suddently dropped the price of Cielo, just like with Jazz. Sales of Cielo also tanked as a consequence.

    I see a huge similarity here!

  3. The real thing lies inside the hood of this car which is 1.5-litre i-DTEC diesel engine which churns out the huge power and mileage of 25.8 KM/l.

  4. It was a much anticipated model of Honda tribe but its failure leaded to fall in its price.The all new Honda Jazz looks more promising and classy.


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