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Old 14th June 2010, 19:38   #316
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Originally Posted by Latheesh View Post
Could you please explain why this huge fan following not converted in to sales, especially Jazz?
Simple answer, it's a hatchback!
We are Indians you see and in India, hatchback = VFM, economy, mileage, always cheaper than a sedan etc etc etc. In Tbhp itself, how many times you have come across comments like "I think Ford should bring in the Focus RS, removing certain gadgets @ the price of a Figo" Do they even know what they are talking about? (Afterall, it's a hatchback, right? duh!)

In this case, even the brand image cannot overcome this herd mentality.
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Old 15th June 2010, 00:35   #317
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Originally Posted by A350XWB View Post
Simple answer, it's a hatchback!
We are Indians you see and in India, hatchback = VFM, economy, mileage, always cheaper than a sedan etc etc etc. In Tbhp itself, how many times you have come across comments like "I think Ford should bring in the Focus RS, removing certain gadgets @ the price of a Figo" Do they even know what they are talking about? (Afterall, it's a hatchback, right? duh!)

In this case, even the brand image cannot overcome this herd mentality.
Dude.., Chill. I'm not sure about the Focus comment, but people do know what they are talking about.
Check out the sales figures for the i20. Its a hatch, which costs quite a bit more than the other hatches. The top end is just shy of the Jazz. Seems to be selling like hot cakes. Go figure.

Whats wrong with people expecting VFM? Whether is a hatch or sedan or whatever, VFM does matter. Why does the Altis/Cruze sell more than the Civic? Because they're better than the Civic?
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Old 15th June 2010, 11:16   #318
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Quote:
Originally Posted by Latheesh View Post
Could you please explain why this huge fan following not converted in to sales, especially Jazz?
Quote:
Originally Posted by A350XWB View Post
Simple answer, it's a hatchback!
We are Indians you see and in India, hatchback = VFM, economy, mileage, always cheaper than a sedan etc etc etc. In Tbhp itself, how many times you have come across comments like "I think Ford should bring in the Focus RS, removing certain gadgets @ the price of a Figo" Do they even know what they are talking about? (Afterall, it's a hatchback, right? duh!)

In this case, even the brand image cannot overcome this herd mentality.
Forget whether you like or dislike Jazz or i20
Forget what Indian mentality is.
Forget Honda has a brand image.
Forget what a hatchback is / should be, etc.
Forget how Jazz and Honda City are priced in other countries.

Jazz simply does not sell in India coz the competition offers a lot more for that price OR it offers as much for a much lesser value.

Everyone is value conscious in every price segment. It just matters what features or parameters weigh more over the other to the buyer.

Though the Civic though stingy in features, people want to buy it just for the looks. To them the free revving 1.8 unit is just an add-on. There are some who buy Civic as it is very mod friendly cosmetically. To some the low-end torque is pathetic and ride comfort average. They tilt towards the Altis. For the high runners, they buy the Laura or Cruz.

Every car has a buyer - what the company should and looks at is - how many buyers they want and what kind or price they would be able to pull up with. Some succeed, some partially succeed, some fail.
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Old 15th June 2010, 11:53   #319
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Originally Posted by dipen View Post
Forget whether you like or dislike Jazz or i20
Forget what Indian mentality is.
Forget Honda has a brand image.
Forget what a hatchback is / should be, etc.
Forget how Jazz and Honda City are priced in other countries.

Jazz simply does not sell in India coz the competition offers a lot more for that price OR it offers as much for a much lesser value.

Everyone is value conscious in every price segment. It just matters what features or parameters weigh more over the other to the buyer.
Couldn't agree with you more. Your observation is spot on as far as Jazz is concerned. My heart is on Jazz but whenever my mind compares it with i20 with all its features, i20 comes out on top. No wonder i20 started selling well after the launch of Jazz.
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Old 15th June 2010, 12:01   #320
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Good Strategy - Poor Execution sums up the Jazz story. If only they had priced it correctly and not gotten greedy, this could have been another feather in the cap of Honda.
With Etios round the corner to give ANHC & Jazz a run for its money, Honda has a serious problem in the segment where it was the undisputed leader.
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Old 15th June 2010, 12:58   #321
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^^ Guys, please don't turn around my post. I was trying to answer this question from Latheesh - "why this huge fan following not converted in to sales?". I'm not a Honda fan and on the contrary, I for one thinks that all of Honda's offerings in India are overpriced. Been living in Germany for four years and here, Honda offers the Accord and even CRV with thier i-CTDi engines, whereas in India, they don't.
In case of Jazz, they did the same mistake and thought that they can get away with the Honda badge. But they misunderstood the hatchback segment in India completely. In this segment in India, people look for more than just the brand image. That's all what I told.
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Old 15th June 2010, 19:31   #322
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Honda messed up on Jazz beyond repair. Even if they correct their prices now(which they wont) it would only mean admitting their own fault. I only hope they price the next hatch they are launching correctly unlike the Jazz. After all, Not many would want to buy a petrol hatch for 8 lacs.
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Old 16th June 2010, 01:22   #323
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If I am not mistaken Honda sunk in a lot of money in developing a 1.2 engine specifically for India unlike other manufacturers who already had a 1.2 engine to put in the bay of their engines. Honda quite smugly even declared that the Jazz was in a new segment - "J" - whatever the hell it is. Sweet car - shabby price.
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Old 16th June 2010, 06:04   #324
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Originally Posted by invidious View Post
If I am not mistaken Honda sunk in a lot of money in developing a 1.2 engine specifically for India unlike other manufacturers who already had a 1.2 engine to put in the bay of their engines. Honda quite smugly even declared that the Jazz was in a new segment - "J" - whatever the hell it is. Sweet car - shabby price.

True and serves them right.

However, I am certain they going to plonk that engine into the next hatchback they launch, so that shouldn't be a loss.
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Old 16th June 2010, 11:42   #325
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There are some indications that Honda may re-engineer Jazz to reduce the production costs... (read cheaper components, or single block/unit components which will be harder to replace, but cheaper overall for assembly and manufacturing) which will eventually reduce the overall manufacturing costs... but the problem as some members have already pointed out is that Honda has lost a lot of consumer confidence with this wrong pricing.
If only it would have bested the features provided by i20, there could be some sane justification for the extra premium, but without it it becomes hard to justify it for the mass market. I am sure they will learn from their mistakes and once they price it well they will reap the benefits of the 1.2 engine they developed.
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Old 16th June 2010, 12:01   #326
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Originally Posted by karmania View Post
There are some indications that Honda may re-engineer Jazz to reduce the production costs... (read cheaper components, or single block/unit components which will be harder to replace, but cheaper overall for assembly and manufacturing) which will eventually reduce the overall manufacturing costs... but the problem as some members have already pointed out is that Honda has lost a lot of consumer confidence with this wrong pricing.
If only it would have bested the features provided by i20, there could be some sane justification for the extra premium, but without it it becomes hard to justify it for the mass market. I am sure they will learn from their mistakes and once they price it well they will reap the benefits of the 1.2 engine they developed.
Honda has a plans to roll out there small car soon and in no way they would reduce the prices of JAZZ as it would hit their new launch.

They made a mistake in pricing and they don't have a way to recover. For this they justify themselves "Quote from their officials: Jazz was never expected to reach higher numbers".
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Old 16th June 2010, 12:55   #327
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Does anyone have an update what are the cash discounts on the Jazz. Lets not consider finance deals. They can be drifted whichever way you want to showcase big discounts.
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Old 17th June 2010, 13:22   #328
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Originally Posted by dipen View Post
Does anyone have an update what are the cash discounts on the Jazz. Lets not consider finance deals. They can be drifted whichever way you want to showcase big discounts.
In Ahmedabad they are offering 40k discount and free active pack worth Rs. 30k. I am told that this scheme is valid for 3 days only.
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Old 17th June 2010, 15:29   #329
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In Mangalore Peninsular Honda is only giving free insurance.plus reverse parking sensors and the usual kit such as teflon coat, polish etc.i am not sure if the discounts will increase towards the end of the month!
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Old 17th June 2010, 17:05   #330
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Everyone is saying that Honda got the pricing of Jazz wrong. Isnt it possible that the manufacturing cost is so high that this is best price they can offer. Will they deliberately kill a product by over pricing it. This is just a thought.
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