Hero Honda were confident of significant market potential for motorized two-wheel vehicles in

India, given the sheer size of the Indian market and its emerging middle class. At the same time,
they understood the limitations in the still-modest purchasing power of their target customers, so
they offered products whose reliability and overall economy were unmatched by their
competitors. Hero Honda’s ability to identify an underserved market – one that was large and
would grow – and match its offering to that market’s needs were the twin factors that separated
them from larger competitors who had targeted more upscale urban customers having quite
different needs. These are simple ideas – marketing basics, really – but they comprise the
foundation for many successful entrepreneurial ventures.