PRODUCT MANAGEMENT

PRO

PRODUCT IMPROVEMENTS IN

HONDA ACTIVA

JBFBDV

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ACKNOWLEDGEMENT

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Contents

ACKNOWLEDGEMENT ............................................................................................................................. 1

EXECUTIVE SUMMARY ............................................................................................................................ 3

INTRODUCTION ....................................................................................................................................... 4

About the Company – Honda Motorcycle & Scooter India Private Limited (HMSI) ............... 4

Corporate Philosophy: ................................................................................................................. 4

Mission: .......................................................................................................................................... 4

Vision:............................................................................................................................................. 4

Brand Philosophy: ........................................................................................................................ 4

PRODUCT PORTFOLIO ......................................................................................................................... 5

ABOUT THE PRODUCT – ACTIVA ......................................................................................................... 7

Medium Involvement Product ........................................................................................................ 8

PRODUCT LEVELS FOR HONDA ACTIVA................................................................................................... 9

PRODUCT IMPROVEMENTS & ANALYSIS .............................................................................................. 10

Year – 2009 “ New Honda Activa” .................................................................................................... 10

Year – 2013 “ACTIVA HET” ................................................................................................................ 12

Year – 2015 “ACTIVA 3G” .................................................................................................................. 13

REFERENCES .......................................................................................................................................... 16

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EXECUTIVE SUMMARY

Honda Activa, the two-wheeler manufactured by Honda Motorcycle & Scooter India Private

Limited (HMSI) was product chosen to analyse the changes and product improvements as

part of the project. The first step was understanding the company and the range of products

offered by the company, and then going focussing on the product Honda Activa. All the

features of the product were studied initially. Following that, changes and improvements made

in the product from 2009 till 2015 were tracked. Both primary and secondary sources of data

were used to compile the list of changes introduced in the product. Primary data as to the

details of changes and improvements made in Honda Activa was collected from Mr. Pramod

Akula, the Area Sales Manager of HMSI Ahmedabad. Along with primary data, secondary data

from the company’s website and articles from various sources on the internet was also used.

It was found that three major improvements were made in the product, in 2009, 2013 and

2015. The major improvements/changes made were introduction of new engine, CBS (Combi-

Brake System) and HET (Honda Eco Technology).

After compiling the details of changes and improvements, an analysis was done to find out the

reasons behind introducing those changes. Further analysis was done to understand whether

these changes have actually provided competitive advantage to the company, to identify

whether the changes were necessary or not. Customer and expert reviews from secondary

sources were then used to understand which of those changes benefitted customers and what

the customers felt about those changes. Customer reviews and information regarding

customer perception of Honda Activa 3G were collected from Envision Honda, the Honda retail

outlet in Lucknow. Also, information regarding products and improvements introduced by

major competitors was analysed and compared with the changes made by Honda Activa. This

was done to understand whether Honda Activa leads the market or follows the market.

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INTRODUCTION

About the Company – Honda Motorcycle & Scooter India Private Limited (HMSI)

(Honda, 2015)

Honda is the largest manufacturer of two wheelers in the world, recognized the world over as

the symbol of Honda two wheelers, the ‘Wings’.

Corporate Philosophy:

HMSI operates on a principle, which is followed worldwide by all Honda companies.

Mission:

Maintaining a global viewpoint, Honda is dedicated to supplying products of the highest quality,

yet at a reasonable price for worldwide customer satisfaction.

Vision:

Respect for the individual: Honda recognizes and respects individual differences. The

respect for individual stems from the following three points:

o Initiative

o Equality

o Trust

The Three Joys (buying, selling and creating): In line with Honda's Philosophy, HMSI

conducts all its daily activities in pursuit of the following joys:

o The joy of buying high quality products.

o The joy of selling high quality products

o The joy of manufacturing high quality products

Brand Philosophy:

"The Power of Dreams" as a way of thinking guides and inspires Honda to move forward. The

strength of the company comes from this philosophy—based on the visionary principles of the

founder, Soichiro Honda.

In 1999 Honda entered India arrived as Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI),

a 100% subsidiary of Honda Motor Company Ltd., Japan. Since its establishment in 1999 at

Manesar, District Gurgaon, Haryana, Honda has lived up to its reputation of offering the

highest quality at the most reasonable price. Despite being one of the youngest players in the

Indian two-wheelers market, Honda has become the largest two wheeler manufacturer as well

as the second largest two-wheelers company in India. Expanding to full operations , Honda

production capacity has jumped 30% year on year to 2.8 million per annum in FY 12- 13.

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PRODUCT PORTFOLIO

Product Family – Two wheelers

Product class – Motorcycle, scooter, superbikes

Product Lines – 110cc, 125cc, 150-160cc, 250cc etc.

Products – Activa 3G, Activa 125 Aviator, Dream Yuga etc.

SKUs(based on colours) – Black, red, majestic grey etc.

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TWO WHEELERS

MOTORCYCLES

110CC

LIVO

Athletic Blue Metallic

Black

Sunset Brown Metallic

Pearl Amazing WhiteCD110 DREAM

Black with Red Graphics

Black with Grey Graphics

Black with Blue Graphics

DREAM YUGA

Sports Black

Vibrant Blue

Majestic Grey

All Black

Sports RedDREAM NEO

Black With Red Stripes

Black With Violet Stripes

CB TWISTERHeavy Grey Metallic

Black

Electric Yellow Metallic

Sports Red

125CC

CB SHINE

BlackGeny Gray Metallic

Maple Brown MetallicImperial Red Metallic

CBF STUNNER

Sports Red

Pearl Sports Yellow

Candy Palm Green

Black

150-160CC

CB TRIGGER

Black

Meteor Green Metallic

Pearl Sunbeam White

Pearl Sienna Red

CB UNICORN 160

Imperial Red Metallic

Geny Gray Metallic

Pearl Igneous Black

CBR150R

Vibrant OrangeBlack & Candy Palm

GreenBlack & Pearl Sunbea White

Sports Red

250CC CBR250R

Pearl Sunbeam White

Sports Red

CBR Repsol

SCOOTERS

125CC ACTIVA 125

Rebel Red Metallic

Midnight Blue Metallic

Pearl Amazing White

Black

110CC

ACTIVA 3G

Black

Lusty Red Metallic

Trance Blue Metallic

Geny Gray Metallic

Pearl Amazing White

DIO

Sports Red

Black

Candy Palm Green

Candy Jazz Blue

AVIATOR

Pearl Igneous Black

Standard Silver Metallic

Rebel Red Metallic

Pearl Sunbeam White

ACTIVA I

Alpha Red Metallic

Pearl Amazing White

Autumn Beige Metallic

Black

Orchid Purple Metallic

SUPERBIKES

650CC CBR650F Pearl Metalloid White

1000CC

CB 1000R

Pearl Sunbeam White

Black

Sports Red

CBR 1000RRWhite

White & Red

1200CC VFR 1200F Red

1300CC VT 1300CX Black

1800CC GOLDWING

Dual Tone Candy Prominence Red

Pearl Glare White

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ABOUT THE PRODUCT – ACTIVA

The name Honda Activa and Scooter are synonymous to each other. Since its launch in

2001 as the first two wheeler by Honda in India, Activa has revived the fading scooter market

in India and reinvented convenient mobility for the entire family.Activa has a conservative

styling and neutral design to please the masses.

Fostered by the trust and confidence of Indian customers in Activa, Honda escalated from

55,000 units in first year (2001) to becoming the market leader in just 3 years. Since then,

Activa has matured to sell over 2.1 million units in FY’2014-15, displacing motorcycles to

become India’s No. 1 Selling 2Wheeler for 2 consecutive months (June-July’15) as well as

undisputed market leader with 59% market share in the scooter segment.

With features like superior four stroke engine, Honda Eco Technology, V-matic (gearless)

transmission, durable all metal body, Convenient Lift-up Independent Cover(CLIC)

mechanism, tubeless tyres and combi-brake system, Activa has delivered commendable

performance and has bagged various awards and achievements over the years. (Honda,

2015)

Year Awards and Achievements

2001 Scooter of the Year(BS Motoring)

2002 Scooter of the Year by Overdrive Magazine

2007 Best automobile brand of India (Planman Media)

2008 Scooter Customers Satisfaction No.1-CNBC TV-18-Auto Car Auto

Awards

2009 Scooter of the Year- ET ZigWheels Awards

2014 Best-selling 2wheeler of the country by Economic Times

Source: http://www.honda2wheelersindia.com/media-center/awards/

Recently in August 2015, has set a new record with Activa becoming the first scooter in India

to achieve a phenomenal 1 crore unit sales landmark.

Honda Activa is the flagship model of HMSI. They entered into the India market after their

separation with Hero Motorcorp in 2000 with Activa. Apart from the base model, 2 more

models ACTIVA 125 & ACTIVA I have also been launched in the Indian market

Today, every second scooter customer in India rides an Activa! (Honda, 2015)

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Medium Involvement Product

Marketing strategy should take into account the level of involvement that a consumer has

with a specific product, as this also dictates the type of information that consumer needs to

process in order to make a purchase decision.

Honda Activa is classified as a moderate/medium involvement product as the associated

price, perceived risk, personal relevance and social visibility is neither too high nor too low.

FCB Matrix

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PRODUCT LEVELS FOR HONDA ACTIVA

(Kotler, 2013)

Core Benefit

• Transportation

Basic Product

• Good Braking system

• Lighting

• Gearless Transmission

• Underseat luggage space

Expected Product

• Comfortable and smooth ride

• High mileage

• Easy to handle

• Good after-sales service

Augmented Product

• Best after-sales service across two-wheelers

• CBS for improved safety: reduces braking distance and increases stability while braking

• HET technology leading to higher mileage

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PRODUCT IMPROVEMENTS & ANALYSIS

We have tracked Honda Activa from year 2009 – present. During this period, Honda made

changes 3 times to their Flagship model. These changes happened in year 2009, 2013 and

2015.

2009 – All New Honda Activa 2013 – Activa HET 2015- Activa 3G

We will be looking into the upgrades in chronological order

Year – 2009 “ New Honda Activa” (HMSI, Joy ON & ON’ – Honda unveils the New refreshing Activa, 2009)

Upgrades Advantages Customer Reviews

Mechanical Makeover

New 110cc Engine from 102cc

Engine

Delivered more power ( 8 bhp from 7

bhp)

Users were delighted

with increased power

15% Increased Mileage Fuel Efficiency Increased Highly appreciated by

users

Combi Brake System (First

time ever in India)

Braking Distance Reduced and

provides increased Stability while

Braking

Highly appreciated by

people riding the vehicle

in congested spaces

Tuff up Tube in Rear Tyre

(Offered by HONDA)

Honda Exclusive - Reduces the

chances of Puncture (Added

Comfort& Safety)

Appreciated

Cosmetic Makeover

Increased Underseat Storage

Capacity to 18L

More space available to keep stuff

(Added Comfort) Indifferent

Key Shutter (Already Used by

Pleasure in the Market)

Safeguards Ignition Slot ( Anti-Theft

Feature) Indifferent

Halogen Lamp Headlights Better Illumination Indifferent

Clear Winkers Make it more stylish and differentiate

itself from competitors

Appreciated for better

style

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Lean Body Cover ( Thickness

reduced from 10mm to

0.8mm)

Reduce Weight and Increased Fuel

Efficiency Not Aware about this

Grab Bar

Increased comfort for pillion rider,

Spare wheel was removed led to

attractive rear

Appreciated for stylish

looks

Bag Hook Increased convenience by securing

luggage on Footboard Indifferent

Wider Foot Board More Space for Foot Appreciated by users

Combi Brake System

Competitors – Hero Pleasure, Scooty Pep+

Analysis

Before the launch of New Activa (2009 edition), Activa was competing in 100cc and less

category. Honda was facing stiff competition from Hero Pleasure. Both the vehicle were 102

cc and had more or less same offerings.

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The only difference between Activa and Pleasure was in their target groups. Honda Activa

positioned itself as a Unisex Scooter whereas Pleasure prime focus was on women

category.

In order to clearly differentiate itself more, Honda launched New Activa with some major

changes like new engine, better fuel efficiency & CBS (first time launch in India).

All the above changes provided Honda Activa with clear advantage over its competitors.

Honda Activa moved itself from 100cc category to 110cc category where it had no rivals and

this led to considerable increase in their market share.

Year – 2013 “ACTIVA HET” (Overdrive, 2013)

Upgrades Advantages Customer Reviews

Honda Eco Technology

(Patented Technology) Better Fuel Efficieny

Activa feels much

livelier and yet smoother

Mechanical Makeover

Nickel Coated Spark Plugs

(First in Scooter Segment) Improved Combustion Positive feedback from

the market, Customer

reported an increase of

5kmpl in the mileage

Crankcase offset

Reengineered Inlet ports Reduced Friction in the Engine

Low Tension Piston Rings

Overall weight Reduction Increased Efficiency

Cosmetic Makeover

HET Emblem over Left Hand

Side Engine Cowl To differentiate it with older model Indifferent

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COMPETITORS - TVS Wego, TVS Jupiter (was expected in few months), Hero Maestro

ANALYSIS

- In order to combat higher fuel prices

- To compete with current and expected products in the market

In order to differentiate itself and cater to mileage obsessive segment, Honda launched

Activa with their patented technology which claimed to increase the fuel mileage. With

this launch, Company claimed more mileage than existing competitors.

Yes, Honda HET did provide a clear competitive advantage over Competitors. Mileage

obsessive customers truly liked the product & it got positive feedback from the experts as

well.

Year – 2015 “ACTIVA 3G” (HMSI, HMSI, 2015)

Upgrades Advantages Customer Reviews

Cosmetic Makeover

Front fascia has been

tweaked mildly with a

restyled and larger faux

vents

Looks more Stylish Easy to differentiate

and looks more

attractive

Handlebar mounted

headlamp and turn

indicators have been given

minor updates

More Attractive Looks

Positive feedback - It

does add to feel and

look of the vehicle Elegant Tail Lamp and clear

winkers

Distinguishes it from the rest

3D HONDA emblem Adds premium feel to the Vehicle

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ELEGANT TAIL LAMP

HONDA 3D EMBLEM

LARGER FAUX VENT

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COMPETITORS – Hero Maestro, TVS Jupiter, TVS Wego, Suzuki Let’s, Yamaha

Fascino, Mahindra Gusto

ANALYSIS

With bombardment of Scooters in the market, Honda has changed its flagship model’s

design. Honda have tried to make it more stylish. Honda Activa has got a cosmetic

makeover in order to entice customers who are looking for style along with performance. It

retains its elegant and simple design but few changes like newly designed taillight, larger

faux vents helps it to distinguish itself from competitors. 3D Honda Emblem which earlier

was a part of premium Honda Motorcyles has also been added to enhance style and

premiumness of the vehicle.

Though the move from Honda seemed logically as they wanted to make their product

superior in terms of style, nothing much can be said about the effect of it on sales numbers.

Honda has got thumbs up from customer and industry expert for new looks.

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REFERENCES

(2009, March 28). Retrieved from Mouthshut: http://www.mouthshut.com/bikes/Honda-

Activa-reviews-925034646

(2013, Feburary 14). Retrieved from Overdrive: http://overdrive.in/reviews/2013-honda-

activa-het-in-india-road-test/

AutoCar. (2009, September 30). Retrieved from AutoCar India :

http://www.autocarindia.com/auto-reviews/honda-activa-269167.aspx

BikePortal. (2015, October 21). Retrieved from

http://bikeportal.in/newbikes/honda/activa/reviews/

HMSI. (2009, March 27). Joy ON & ON’ – Honda unveils the New refreshing Activa.

Retrieved from HMSI: http://www.honda2wheelersindia.com/joy-on-on-honda-

unveils-the-new-refreshing-activa/

HMSI. (2015, October 21). Retrieved from HMSI:

http://www.honda2wheelersindia.com/activa3g/

Honda. (2015). Honda About Us. Retrieved from Honda Power of Dreams:

http://www.honda2wheelersindia.com/about-us/philosophy/

Honda. (2015, August 18). Honda Activa crosses One Crore unit sales landmark. Retrieved

from Honda the power of dreams: http://www.honda2wheelersindia.com/honda-

activa-crosses-one-crore-unit-sales-landmark/

Kotler, P. (2013). Marketing Management. Pearson.