How to theory apply in to practical of marketing management to honda motors

PRESENTATION ON

HONDA COMPANY

“THE POWER OF

DREAMS”

10/19/2013 Babasabpatilfreepptmba.com 1

Industry Introduction Automobile is one of the largest industries in global market. Being the

leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group.

Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian company dealing in automobile sector. The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India as well as in the world and playing a very important role in two wheeler automobile sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are international automobile brand.


Company Introduction

Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Honda's dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support.


About Honda Motorcycle & Scooter India Pvt. Ltd.

Official Name Honda Motorcycle & Scooter India Pvt. Ltd.

Established 20th Aug, 1999

Place Manesar, District Gurgaon, Haryana, India

Investment Rs. 300 Crore

Representative Mr. Shinji Aoyama, President & CEO

Factory Location Manesar, District Gurgaon, Haryana, India

Production Capacity 10,000,00 Units per Year


Honda's dream for India is to not only manufacture 2-wheelers

of global quality; but also meet and exceed the expectations of

Indian customers with outstanding after sales support. They

aim to produce technologically superior, efficient and

reasonably priced 2-wheelers, with Honda tested technology,

backed up with after sales service of Honda's global standard.


Mission Statement

“Human Use of Human Ideas”


Vision Statement

“To Achieve the Most Admired Brand

Status by 2010”


Objectives

Respect for individuals.

- Initiative

- Equality

- Trust

The three joys.

- The joy of manufacturing high quality products.

- The joy of selling high quality products.

- The joy of buying high quality products.


Core and Auxiliary Needs

Core Needs Auxiliary Needs Brands

Transportation Speed, Fashion Activa

Transportation Income (Middle Level) Dio

Transportation Professionals, Mileage Eterno

Transportation Fashion, Speed, Royalty Unicorn

Transportation Professionals, Life Style Shine

Transportation Speed, Fashion, Mileage Aviator

Transportation Speed, Uniqueness,

mileage, Royalty

Stunner


Orientation or Philosophy

Company Adopted ORINETATION EXTEND

(FULLY,PARTIALY,NO

T APPLICABLE)

JUSTIFICATION

Production Concept Partially This concept believes that

consumer will favor product

that are available at

reasonable prices. But

depending on growth of

economy. Honda doesn’t do

bulk production fully.

Already it had experience

and relaunched the product

again.


ORINETATION EXTEND

(FULLY,PARTIALY,NO

T APPLICABLE)

JUSTIFICATION

Product Concept Fully The company has significantly

improved quality product through a

systematic task force approach.

Selling Concept Partially Seasonal offers and discount,

festival offers.

Marketing Concept Fully Customer->Production->Customer

EX: Honda Stunner, Unicorn is

gaining popularity with younger

Male population. To keep these

customers who are conscious about

style & performance, frequent

refresher and upgrades are required

emergence of starter.


ORINETATION EXTEND

(FULLY,PARTIALY,NOT

APPLICABLE)

JUSTIFICATION

Societal Marketing

Concept

Partially Societal welfare,

Sponsorship towards

Educational Institutions.


Company SWOT Analysis Strength

Reliable brand name

Affordable price

Honda having high tech engines

HMSI (Honda Motorcycle and Scooter India Pvt.Ldt) is the subsidiary company of Honda Motors Ltd. Which is the largest company in the proposed sector

Weakness

Less number of service center

Spares parts are not easily available

Low product range

Maintenance cost is very high 10/19/2013 Babasabpatilfreepptmba.com 13

Opportunity

Increase in product range

Untapped market above 180 cc in motorcycles.

More maturity and movement towards higher-end motorcycles

Honda can be use brand image of Hero Honda

Threats

There is high competition in the market

Threat of cheap imported motorcycles and components from

China


Different Brands and Features Different Brands:

Honda Activa

Honda Dio

Honda Eterno

Honda Unicorn

Honda Shine

Honda Aviator

Honda CBF Stunner

Honda CBR 1000

Honda CBF Twyster 10/19/2013 Babasabpatilfreepptmba.com 15

Features of Brands

Honda Activa 102CC:“Designed for Everyone”

FEATURES:

Flush surface.

Multi-reflector light.

Low seat with high ground clearance.

Movable front fender.

Sleek and aerodynamic styling.

Low noise 4-cycle engine.

Metal Body.

CLIC mechanism.


http://www.surfindia.com/automobile/honda-activa.html

Honda Dio 102CC: “Get Noticed”

FEATURES:

Attractive body styling with

mounted head light that adds

charm to the scooter.

Light weight body enhances the

fuel economy and riding pleasure.

Sleek and aerodynamic design to

suit European styling preferences.

Effective shock absorption.

Stays balanced even during

emergency braking.

Comfortable secure seat.

A bag hook below the front end

of the seat.

Wide and spacious foot board. 10/19/2013 Babasabpatilfreepptmba.com 17

http://www.surfindia.com/automobile/honda-dio.html

Honda Eterno 150CC: “Get More”

FEATURES:

4-Stroke, 150cc Engine promises to

gives a mileage of 60 kmpl under

actual riding conditions.

Aerodynamic Body with masculine

looking body style..

Dual Spring Suspension technology

for better comfort.

One-Direction Gear System.

Larger storage space under seat.

CLIC - Convenient Lift Up

Independent Cover for easy repair and

maintenance.

Waterproof and durable Stainless-

Steel inner cables and TUFFUP outer

cables.


Honda Unicorn 150CC: “Be A Wing Rider”

FEATURES:

Best pick up in its class.

It delivers an incredible 60

kms to a liter.

It is a perfect fusion of

sporty & macho design.

With Mono Suspension &

Diamond frame, it takes all

kinds of road shocks with

absolute ease.

It is the only motorcycle

equipped with a puncture

resistant Tupp up Tube.


Honda Shine125CC:

FEATUES:

The Optimax engine, 02 way air

jacket and CV carburetor makes the

Shine an automatic 2 wheeler as it

reduces the usage of clutch.

New Aero dynamic design for

enjoyable riding.

Intense tail lamp, aerodynamic

front cowl and fuel tank knee grip

gives shine decent and stylish

looks.


http://www.surfindia.com/automobile/honda-shine.html

Honda Aviator 102CC: “Live Your Style “

FEATURE:

Unique style of front facial

with large clear lens multi-

reflector lamps.

High impact resistant body.

Lightweight 12 inches alloy

wheel.

Telescopic front suspension

for better on road control.

Aviator comes with Puncture

resistant tuff-up tube.

Adequate 20 Liter of under

seat space

7 bhp, 102 cc powerful engine

for power-packed performance.


Honda CBF Stunner 125CC:

FEATURE:

•Honda Stunner CBF Self

Drum with a powerful 11 bhp

Honda engine, 5 speed

transmission and a maximum

power that ensures an absolute

sensational ride.

•Featured with a 4stroke, and

that facilitates quick start, this

gives you a proper mileage of

48 to 50 Km per hour, so that

you can cover distances in no

time.


Honda CBR 1000:

FEATURES:

•Sharper rear styling with

revised shape and new tail-

light with clear lens

•Sharp exhaust muffler

appearance with aluminium

muffler cover

•New graphics and colours

•Improved crankshaft inertia

mass


http://www.bikerzbay.com/images/stories/Honda_pictures/2010/Honda_CBR1000RR/Honda_CBR_1000RR_Fireblade_C-ABS_5.jpg

Punch lines of Brands

Honda Activa 102CC: “Designed for Everyone”

Honda Dio 102CC: “Get Noticed”

Honda Eterno 150CC: “Get More”

Honda Unicorn 150CC: “Be A Wing Rider”

Honda Aviator 102CC: “Live Your Style “


Competitor Analysis

Industry Competitor

Hero Honda

Hero Honda Motors Limited was established in 1984, as a joint venture

between India's Hero Group (world's largest bicycle manufacturers) and

Japan's Honda Motor Company. And created the world's single largest two

wheeler company and also one of the most successful joint ventures

worldwide. During the 80s, Hero Honda became the first company in India.

Over 19 million Hero Honda two wheelers running on Indian roads today.

TVS

TVS Motors is the third largest company in the two-wheeler industry with a

market share of 16%. Infect, it is the only Indian company without a foreign

collaboration in the two-wheeler industry. When the company opted out of

the collaboration with Suzuki in 2002, many believed that TVS was headed

towards extinction. But the company proved the doomsayers wrong and

came out with a very successful `TVS Victor'. TVS Motors Ltd. originally

incorporated in 1982 to manufacture two-wheelers in collaboration with

Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler

industry.

Industry Competitors


Industry Competitor

BAJAJ

Bajaj is the first Indian two wheeler automobile company in the

market since 1945 with the name M/s Bacharj trading corporation

private limited. In 1959 M/sBacharj trading corporation private

limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains

license from the Government of India to manufacture two- and

three-wheelers vehicles in 1959.

Yamaha

Yamaha Motor Corporation is the auto mobile company of Japan

(1953) which works in India since 1955 and providing latest

technology in India from last two decades. Yamaha Motor India

was incorporated in august 2001 as a 100% subsidiary of Yamaha

motor corporation, Japan


Brand Competitors

Brands Competitors

Honda Activa, Honda Dio,

Honda Aviator, Honda

Eterno

Hero Honda Pleasure, TVS Scooty Pep ,TVS Scooty,

Bajaj Wave.

Honda Unicorn Bajaj Pulsar DTS-i, Hero Honda CBZ

Extreme, Hero Honda Achiever, Hero Honda

Ambition.

Honda Shine Bajaj Discover DTS-i, Hero Honda Glamour’s, TVS

Victor GLX, Hero Honda Passion Plus, Hero Honda

Splendor NXG, Yamaha Gladiator.

Honda Stunner Bajaj Avenger DTS-i, Hero Honda Karizma, TVS

Apache, Yamaha FZ. 10/19/2013 Babasabpatilfreepptmba.com 27

Competitor Objective

Hero Honda:

Being the most fuel efficient Company.

To develop appropriate product & excellent Quality.

To meet the demands of the sophisticated markets in Europe & America.

To reach an unassailable pole position in the Indian Two Wheeler market.

To maintain high standard of ethics & social responsibilities.

To meet the quality performances & price aspirations of the customer.


TVS:

TVS Motor will be responsive to customer requirements consonant with its core competence and profitability.

Customer satisfaction by giving the customer the right product, at the right price, at the right time.

To achieve a significant share for international business in the total turnover.

TVS Motor will support and encourage the process of self-renewal in all its employees and nurture their sense of self worth.

TVS Motor strives for long-term relationships of mutual trust and interdependence with its customers, employees, dealers and suppliers.

TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people.


Bajaj:

Bajaj Auto continues to firmly believe in providing the customer

Value for money, for years through their products and services.

The Bajaj maintain and improve, In decision making, quality,

safety and service will be given as much consideration as

productivity, cost and delivery.

Quality shall be built into every aspect of their work life and

business operations.

Quality improvements and customer satisfaction shall be the

responsibility of every employee.


Yamaha:

YAMAHA focusing on serving their customer where they can build long term relationships by raising their lifestyle through performance excellence, proactive design & innovative technology.

They are treated as employees are the most valuable assets and they intend to develop them to achieve international level of professionalism with progressive career development.

Yamaha conduct their business ethically and socially in a responsible manner with concerns for the environment.

Grow through continuously innovating their business processes for creating value and knowledge across their customers thereby earning the loyalty of their partners & increasing their stakeholder value.


Assessing Strength and Weakness Hero Honda

Strengths:

Hero Honda introduced First stroke bike in the Indian market.

Hero Honda gives 80 Km/Liter Avg.

Better sale service.

It has a good brand image.

It gives better service for customers.

Best customer preference.

Weakness:

Suppose to be very sophisticated.

They have big gap between cubic capacities of its products..

Spare parts are too costly. 10/19/2013 Babasabpatilfreepptmba.com 32

TVS

Strengths:

Ability to understand customer’s needs and wants

Recognized and established brand name

Effective advertising capability

Weakness:

They have big gap between cubic capacities of its products..

Bikes are not attractive as compare to there competitors.


BAJAJ

Strengths:

Highly experienced management.

Product design and development capabilities.

Extensive R & D focus.

Widespread distribution network.

High performance products across.

High export to domestic sales ratio.

Weakness:

Still has no established brand to match Hero Honda's Splendor.

Not a globally recognizable brand (unlike the JV partner Kawasaki)


YAMAHA

Strengths:

Yamaha motors India is the subsidiary company of Yamaha motors ltd, which is the MNC company having a good brand name.

It is the one of the oldest company in the Indian market.

Bikes are available at very low price.

Weakness

Some Bikes are not attractive.

No presences in scooter segment.

No presences in above 150cc bike segment.


Whom to Attack and Whom to

Avoid (S-Strong, W-Weak, C-Close, D-Distant, G-Good, B-Bad)

Competitor S W C D G B Attack Avoid

Hero Honda √ √

TVS √

√

BAJAJ √ √

Yamaha √ √


Hero Honda:

Considering various brand of Hero Honda i.e. Pleasure,

Hunk, Karizma, CBZ Extreme. Which give strong competition to

Honda i.e. Aviator, Activa, Unicorn, Stunner.

TVS:

Comparing to Honda Company, TVS Company has the

good market coverage and sales is more so they are strong

competitor and Honda should attack them.

BAJAJ:

Comparing to the Indian market the Bajaj’s has good

competition with their high CC brands to the Honda.

Yamaha:

With the innovative products of Yamaha it gives the neck

to neck Competition.


Four P’s of Honda

Manufacturer

Product Price Place or

Distribution

Channel

Promotion

Honda Activa 41,000 Manufacturer

Dealer

Customer

TV Advertisement

Honda Dio 36,908 News Paper

Honda Eterno 36,526 Magazines

Honda Unicorn 57,647 Discount

Honda Shine 46,806 Festival Offers

Honda Aviator 43,104 Coupons

Honda Stunner 62,097 Snoopers

Pricing Strategy:

Competitive based pricing Strategy. 10/19/2013 Babasabpatilfreepptmba.com 38

Factors Influencing Buying

Behavior Factors High / Medium /Low

Impact

Justification

Cultural Factors High Impact Determination of wants &

Behaviors in the consumer

market. India is exposed to

values,humanitartian,people

loyalty, emotions, love &

Affection all these influences

Buying Behavior

Social Factors High Impact Social factors like family,

neighbors, Co-workers,

friends all these are

influencing on buyer

behavior.


Factors High / Medium /Low

Impact

Justification

Personal Factors High Impact Factors like age, education,

family, occupation, life style

all these influences buying

behavior.

Psychological Factors Medium Impact Factors like motivation,

perception, learning, attitude

and beliefs influences on

buying behavior of customer.


Buying Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Behavior


Brand Honda Shine:

Need Recognition:

The customer basic need is transportation (Bike).

Information Search:

After identifying their needs they are going to search information about

the bike of different brands of companies through various ways like

Advertisements, Internet, Magazines, and visiting to Showrooms.

Evaluation of Alternatives:

After finding the information they study about various features of brands,

price, service and quality of the product. The products which are similar to

Honda Shine are Hero Honda Passion plus, TVS Victor, Bajaj Discover DTS-i125CC.

Purchase Decision:

Evaluating all product feature and price and his taste and preference he

decided to purchase.

Post Purchase Behavior:

After using this bike he feels well and satisfied by this bike.


Conclusion The study which we conducted on the two wheeler automobile sector is a very important topic of automobile sector. Two wheeler automobile sector is the backbone of the automobile sector in India.

After deep research, analysis and getting information about company as formulated that The Honda Motorcycle Pvt.Ldt Company achieved success in the market. Through out the study we found the Honda having very new and modern technology in their bikes, they have a good name and fame in National and International Market.

MNC's like Yamaha, TVS, Hero Honda, Bajaj are also giving large competition. Concluding the performance of the company related to two wheeler sector in India, getting their growth and what are services they are providing after sales. But still there is a gap between 150cc to 225cc segment which is most preferable segment by youth today. With newer and better models are coming up customer has better and bigger choices to choose from. It is the competition on various aspects such as price, design technology, after sales services and even purchases offers, which provides to both buyer and seller. Even many dealers are in view that today Hero Honda and Bajaj, thrives on competition.


How to theory apply in to practical of marketing management to honda motors

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