Non Conventional Market Entry Strategy
Posted by Gavin Galloway on February 29, 2012
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Situation
Around 1960 Honda Motor Company was planning to enter the US motorcycle market, leading with their top-of-range 250cc and 300cc machines.
Strategy
Mr Honda was especially confident – the shape of the handlebars resembled the eyebrow of Buddha, which he felt was a strong selling point.
What happened?
The entry plan failed – the Honda bikes lacked credibility in a market dominated by large capacity machines of 650cc and over from manufacturers like Harley-Davidson and Triumph.
What happened next?
The small Honda sales team were using Honda 50cc ultra lightweight machines as around town transport; they were noticed by local people who saw them as practical/fun transport, and began buying them.
Consequence
This small snowball grew until Honda Motor Company became the world’s no 1 motor cycle manufacturer.
Moral
If your strategy is non-conventional, make sure you put a safety net in place.
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