CONTENTS

Chapter 1 1-4

Introduction

Objectives

Limitations of the study

Methodology

Chapter II

Customer Satisfaction 5-14

Chapter III

Profile of Honda 15-27

Chapter IV 28-39

Analysis of Study

Chapter V

Summary amp Suggestions 40-41

Questionnaire 42-45

BIBLIOGRAPHY 46

1

CHAPTER - I

INTRODUCTION

The two wheeler industry has been expanding rapidly Gone are the days when processing a two

wheeler was seen as a luxury Now a day it is viewed as a mere necessity Prior sale of two

wheelers was mainly confined to urban areas but lately in rural areas the bicycles are being

replaced by power driven two wheelers such as scooters and motorcycles Not only this the

industry has also customers ranging from all demographic segments It has been common that

even school going children are driving two wheelers The women customers are also increasing

due to increase in women literacy and employment

If getting a new customer is difficult then retaining a current customer is more difficult one and

not only that it is estimated that the cost of attracting a new customer is five times retaining the

current customer It requires a great deal of effort to induce satisfied customer to switch away

from their current preference Thus customer attitude is been given top priority in todayrsquos

competitive world

NEED FOR THE STUDY

After globalizations number of two wheeler markets have entered Indian Market New

companies have been set up with foreign specially Japanese Collaboration by already

established companies Honda motors Japan has set up subsidiary company at Gurgaon India to

offer state of the art Honda two wheelers to Indian makes Honda motors with its wide product

range has achieved a respectful market shone with strong dealer network and excellent after

sales services

Even though there is waiting period for some products some are available across the shelf

dealerships are upon not only at metros but also at urban and semi urban areas This is to

2

provide prompt after sales services it has opened class of art show rooms and work shops at all

the places

There is a need to study to efforts put in by the Company Dealers and Service network to study

the extent to which customers are satisfied with the product service and allied services etc

Hence it is proposed to study the Customer Satisfaction levels of Honda Customers with respect

to the product performance after sales service and other allied services like finance facility

availability of spares and accessories etc

OBJECTIVES OF THE STUDY

To study the profile of Two wheeler Industry in India

To study the marketing activities of Honda Motors

To study the Dealership profile of Vishnu Honda

To study the customer handling practices prior to sale during sale and after sale and

assesses the satisfaction levels of customers

To offer suggestion for improving the customer satisfaction

LIMITATIONS OF THE STUDY

- The study is limited to Honda Motors Customers who have purchased or come for service

to Ms Sri Vishnu Honda at Visakhapatnam

- Since a convenient sampling method is adopted the sample may not be representing all

types of customers

- As the study is conducted for a limited period and hence it may not be exhaustive

3

METHODOLOGY

The study is conducted basing on Primary and Secondary Data

Primary data is collected by administering a structured questionnaire to customers who visit the

dealer for purchase and service Data is also collected through personal discussions with the

dealer sales and service staff and personal observation made during sale and service

Secondary data is obtained from company records web site published articles etc

SAMPLING

Convenient Sampling method is adopted for selecting the respondents Care is taken to cover

customers of all types of products and age groups etc

4

CHAPTER II

CUSTOMER SATISFACTION

INTRODUCTION

Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a

products perceived performance in relation to his (or) her expectation

Satisfaction is a function of perceived performance and expectations If the performance falls

short of expectation the customer is dissatisfied If the performance matches the expectations

the customer is satisfied If the performance exceeds expectations the customer is highly

satisfied (or) delighted

Customer satisfaction is both a goal and a marketing tool Companies that achieve high

customer satisfaction ratings make sure that their target market knows it

Actual performance by the firm

Customer Satisfaction = ---------------------------------

Customer Expectations

5

1 CUSTOMER amp HIS IMPORTANCE -

The essence of the marketing concept is that organizations must adopt customer oriented features

and focus their attention of building programs offering and strategies that satisfy customer needs

and wants Many organizations maintain their focus on operations or product or sales efforts

and thereby get dislocated by mistaking the means for the end Successful marketing involves

companywide transformations in attitude beliefs and perceptions of the people in how they

view the customer Deep commitment to the customer is what distinguishes successful

marketers from Laggards

The excellent companies really close to their customers other companies top about it excellent

companies really close to their customers other companies to about it excellent companies do

itrsquo The companies which show extra ordinary concern for the customer include American

express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the

customerrsquos attitude is the hull mark of their service strategy

Hence Customers are -

1 The most important people in any business

2 They are not dependent of a business But business is dependent on them

3 They are not an interruption to own work they are the purpose of it

4 They are doing us favor when they come in we are not doing them favor by serving

them

5 They are part of our business they are not outsiders

6 They are not just statistic The customers are human beings with flesh and blood having

feelings and emotions

7 People come to us with their needs and wants It is our job to fulfill them

8 They are the lifeblood of every business without whom the door of the business would

have been closed

9 Non customer functions in particular must be made customer oriented Customer needs

and requirements should be tracked on regular basis

6

II CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer performance in relation to

the buyerrsquos expectations Customer satisfaction can be defined as -

Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived

performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the

different between perceived performance and expectations some of the successful business firms

are aiming for total Customer Satisfaction which increase customer loyalty towards the product

or service offered by the firm

III IMPORTANCE OF CUSTOMER SATISFACTION

MISSION AND PURPOSE OF BUSINESS

The need to satisfy customer for achieving success in any commercial enterprise is so obvious

one wonder if there is any need to establish the importance of customer satisfaction However

one often finds that what should be obvious everyone also needs to be explained and establish

The income of commercial enterprise is derived from the payment received for the products and

services supplied to its external customers If there are no customers there is no income there

is no business In other words customers are the sole reason for the existence of commercial

establishments as the function is extremely important for the success of the organization the

senior management as well as the leaders of other departments or Divisions should also realize

the importance of customers to the organization and for its growth It is therefore no surprise

that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission

and purpose of every business

7

IV CUSTOMER SATISFACTION PROCESS

Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived

company performance and customer satisfaction not only for them but for their competitions as

well

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times

Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

8

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

CHAPTER - I

INTRODUCTION

The two wheeler industry has been expanding rapidly Gone are the days when processing a two

wheeler was seen as a luxury Now a day it is viewed as a mere necessity Prior sale of two

wheelers was mainly confined to urban areas but lately in rural areas the bicycles are being

replaced by power driven two wheelers such as scooters and motorcycles Not only this the

industry has also customers ranging from all demographic segments It has been common that

even school going children are driving two wheelers The women customers are also increasing

due to increase in women literacy and employment

If getting a new customer is difficult then retaining a current customer is more difficult one and

not only that it is estimated that the cost of attracting a new customer is five times retaining the

current customer It requires a great deal of effort to induce satisfied customer to switch away

from their current preference Thus customer attitude is been given top priority in todayrsquos

competitive world

NEED FOR THE STUDY

After globalizations number of two wheeler markets have entered Indian Market New

companies have been set up with foreign specially Japanese Collaboration by already

established companies Honda motors Japan has set up subsidiary company at Gurgaon India to

offer state of the art Honda two wheelers to Indian makes Honda motors with its wide product

range has achieved a respectful market shone with strong dealer network and excellent after

sales services

Even though there is waiting period for some products some are available across the shelf

dealerships are upon not only at metros but also at urban and semi urban areas This is to

2

provide prompt after sales services it has opened class of art show rooms and work shops at all

the places

There is a need to study to efforts put in by the Company Dealers and Service network to study

the extent to which customers are satisfied with the product service and allied services etc

Hence it is proposed to study the Customer Satisfaction levels of Honda Customers with respect

to the product performance after sales service and other allied services like finance facility

availability of spares and accessories etc

OBJECTIVES OF THE STUDY

To study the profile of Two wheeler Industry in India

To study the marketing activities of Honda Motors

To study the Dealership profile of Vishnu Honda

To study the customer handling practices prior to sale during sale and after sale and

assesses the satisfaction levels of customers

To offer suggestion for improving the customer satisfaction

LIMITATIONS OF THE STUDY

- The study is limited to Honda Motors Customers who have purchased or come for service

to Ms Sri Vishnu Honda at Visakhapatnam

- Since a convenient sampling method is adopted the sample may not be representing all

types of customers

- As the study is conducted for a limited period and hence it may not be exhaustive

3

METHODOLOGY

The study is conducted basing on Primary and Secondary Data

Primary data is collected by administering a structured questionnaire to customers who visit the

dealer for purchase and service Data is also collected through personal discussions with the

dealer sales and service staff and personal observation made during sale and service

Secondary data is obtained from company records web site published articles etc

SAMPLING

Convenient Sampling method is adopted for selecting the respondents Care is taken to cover

customers of all types of products and age groups etc

4

CHAPTER II

CUSTOMER SATISFACTION

INTRODUCTION

Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a

products perceived performance in relation to his (or) her expectation

Satisfaction is a function of perceived performance and expectations If the performance falls

short of expectation the customer is dissatisfied If the performance matches the expectations

the customer is satisfied If the performance exceeds expectations the customer is highly

satisfied (or) delighted

Customer satisfaction is both a goal and a marketing tool Companies that achieve high

customer satisfaction ratings make sure that their target market knows it

Actual performance by the firm

Customer Satisfaction = ---------------------------------

Customer Expectations

5

1 CUSTOMER amp HIS IMPORTANCE -

The essence of the marketing concept is that organizations must adopt customer oriented features

and focus their attention of building programs offering and strategies that satisfy customer needs

and wants Many organizations maintain their focus on operations or product or sales efforts

and thereby get dislocated by mistaking the means for the end Successful marketing involves

companywide transformations in attitude beliefs and perceptions of the people in how they

view the customer Deep commitment to the customer is what distinguishes successful

marketers from Laggards

The excellent companies really close to their customers other companies top about it excellent

companies really close to their customers other companies to about it excellent companies do

itrsquo The companies which show extra ordinary concern for the customer include American

express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the

customerrsquos attitude is the hull mark of their service strategy

Hence Customers are -

1 The most important people in any business

2 They are not dependent of a business But business is dependent on them

3 They are not an interruption to own work they are the purpose of it

4 They are doing us favor when they come in we are not doing them favor by serving

them

5 They are part of our business they are not outsiders

6 They are not just statistic The customers are human beings with flesh and blood having

feelings and emotions

7 People come to us with their needs and wants It is our job to fulfill them

8 They are the lifeblood of every business without whom the door of the business would

have been closed

9 Non customer functions in particular must be made customer oriented Customer needs

and requirements should be tracked on regular basis

6

II CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer performance in relation to

the buyerrsquos expectations Customer satisfaction can be defined as -

Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived

performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the

different between perceived performance and expectations some of the successful business firms

are aiming for total Customer Satisfaction which increase customer loyalty towards the product

or service offered by the firm

III IMPORTANCE OF CUSTOMER SATISFACTION

MISSION AND PURPOSE OF BUSINESS

The need to satisfy customer for achieving success in any commercial enterprise is so obvious

one wonder if there is any need to establish the importance of customer satisfaction However

one often finds that what should be obvious everyone also needs to be explained and establish

The income of commercial enterprise is derived from the payment received for the products and

services supplied to its external customers If there are no customers there is no income there

is no business In other words customers are the sole reason for the existence of commercial

establishments as the function is extremely important for the success of the organization the

senior management as well as the leaders of other departments or Divisions should also realize

the importance of customers to the organization and for its growth It is therefore no surprise

that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission

and purpose of every business

7

IV CUSTOMER SATISFACTION PROCESS

Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived

company performance and customer satisfaction not only for them but for their competitions as

well

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times

Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

8

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

provide prompt after sales services it has opened class of art show rooms and work shops at all

the places

There is a need to study to efforts put in by the Company Dealers and Service network to study

the extent to which customers are satisfied with the product service and allied services etc

Hence it is proposed to study the Customer Satisfaction levels of Honda Customers with respect

to the product performance after sales service and other allied services like finance facility

availability of spares and accessories etc

OBJECTIVES OF THE STUDY

To study the profile of Two wheeler Industry in India

To study the marketing activities of Honda Motors

To study the Dealership profile of Vishnu Honda

To study the customer handling practices prior to sale during sale and after sale and

assesses the satisfaction levels of customers

To offer suggestion for improving the customer satisfaction

LIMITATIONS OF THE STUDY

- The study is limited to Honda Motors Customers who have purchased or come for service

to Ms Sri Vishnu Honda at Visakhapatnam

- Since a convenient sampling method is adopted the sample may not be representing all

types of customers

- As the study is conducted for a limited period and hence it may not be exhaustive

3

METHODOLOGY

The study is conducted basing on Primary and Secondary Data

Primary data is collected by administering a structured questionnaire to customers who visit the

dealer for purchase and service Data is also collected through personal discussions with the

dealer sales and service staff and personal observation made during sale and service

Secondary data is obtained from company records web site published articles etc

SAMPLING

Convenient Sampling method is adopted for selecting the respondents Care is taken to cover

customers of all types of products and age groups etc

4

CHAPTER II

CUSTOMER SATISFACTION

INTRODUCTION

Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a

products perceived performance in relation to his (or) her expectation

Satisfaction is a function of perceived performance and expectations If the performance falls

short of expectation the customer is dissatisfied If the performance matches the expectations

the customer is satisfied If the performance exceeds expectations the customer is highly

satisfied (or) delighted

Customer satisfaction is both a goal and a marketing tool Companies that achieve high

customer satisfaction ratings make sure that their target market knows it

Actual performance by the firm

Customer Satisfaction = ---------------------------------

Customer Expectations

5

1 CUSTOMER amp HIS IMPORTANCE -

The essence of the marketing concept is that organizations must adopt customer oriented features

and focus their attention of building programs offering and strategies that satisfy customer needs

and wants Many organizations maintain their focus on operations or product or sales efforts

and thereby get dislocated by mistaking the means for the end Successful marketing involves

companywide transformations in attitude beliefs and perceptions of the people in how they

view the customer Deep commitment to the customer is what distinguishes successful

marketers from Laggards

The excellent companies really close to their customers other companies top about it excellent

companies really close to their customers other companies to about it excellent companies do

itrsquo The companies which show extra ordinary concern for the customer include American

express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the

customerrsquos attitude is the hull mark of their service strategy

Hence Customers are -

1 The most important people in any business

2 They are not dependent of a business But business is dependent on them

3 They are not an interruption to own work they are the purpose of it

4 They are doing us favor when they come in we are not doing them favor by serving

them

5 They are part of our business they are not outsiders

6 They are not just statistic The customers are human beings with flesh and blood having

feelings and emotions

7 People come to us with their needs and wants It is our job to fulfill them

8 They are the lifeblood of every business without whom the door of the business would

have been closed

9 Non customer functions in particular must be made customer oriented Customer needs

and requirements should be tracked on regular basis

6

II CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer performance in relation to

the buyerrsquos expectations Customer satisfaction can be defined as -

Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived

performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the

different between perceived performance and expectations some of the successful business firms

are aiming for total Customer Satisfaction which increase customer loyalty towards the product

or service offered by the firm

III IMPORTANCE OF CUSTOMER SATISFACTION

MISSION AND PURPOSE OF BUSINESS

The need to satisfy customer for achieving success in any commercial enterprise is so obvious

one wonder if there is any need to establish the importance of customer satisfaction However

one often finds that what should be obvious everyone also needs to be explained and establish

The income of commercial enterprise is derived from the payment received for the products and

services supplied to its external customers If there are no customers there is no income there

is no business In other words customers are the sole reason for the existence of commercial

establishments as the function is extremely important for the success of the organization the

senior management as well as the leaders of other departments or Divisions should also realize

the importance of customers to the organization and for its growth It is therefore no surprise

that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission

and purpose of every business

7

IV CUSTOMER SATISFACTION PROCESS

Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived

company performance and customer satisfaction not only for them but for their competitions as

well

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times

Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

8

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

METHODOLOGY

The study is conducted basing on Primary and Secondary Data

Primary data is collected by administering a structured questionnaire to customers who visit the

dealer for purchase and service Data is also collected through personal discussions with the

dealer sales and service staff and personal observation made during sale and service

Secondary data is obtained from company records web site published articles etc

SAMPLING

Convenient Sampling method is adopted for selecting the respondents Care is taken to cover

customers of all types of products and age groups etc

4

CHAPTER II

CUSTOMER SATISFACTION

INTRODUCTION

Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a

products perceived performance in relation to his (or) her expectation

Satisfaction is a function of perceived performance and expectations If the performance falls

short of expectation the customer is dissatisfied If the performance matches the expectations

the customer is satisfied If the performance exceeds expectations the customer is highly

satisfied (or) delighted

Customer satisfaction is both a goal and a marketing tool Companies that achieve high

customer satisfaction ratings make sure that their target market knows it

Actual performance by the firm

Customer Satisfaction = ---------------------------------

Customer Expectations

5

1 CUSTOMER amp HIS IMPORTANCE -

The essence of the marketing concept is that organizations must adopt customer oriented features

and focus their attention of building programs offering and strategies that satisfy customer needs

and wants Many organizations maintain their focus on operations or product or sales efforts

and thereby get dislocated by mistaking the means for the end Successful marketing involves

companywide transformations in attitude beliefs and perceptions of the people in how they

view the customer Deep commitment to the customer is what distinguishes successful

marketers from Laggards

The excellent companies really close to their customers other companies top about it excellent

companies really close to their customers other companies to about it excellent companies do

itrsquo The companies which show extra ordinary concern for the customer include American

express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the

customerrsquos attitude is the hull mark of their service strategy

Hence Customers are -

1 The most important people in any business

2 They are not dependent of a business But business is dependent on them

3 They are not an interruption to own work they are the purpose of it

4 They are doing us favor when they come in we are not doing them favor by serving

them

5 They are part of our business they are not outsiders

6 They are not just statistic The customers are human beings with flesh and blood having

feelings and emotions

7 People come to us with their needs and wants It is our job to fulfill them

8 They are the lifeblood of every business without whom the door of the business would

have been closed

9 Non customer functions in particular must be made customer oriented Customer needs

and requirements should be tracked on regular basis

6

II CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer performance in relation to

the buyerrsquos expectations Customer satisfaction can be defined as -

Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived

performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the

different between perceived performance and expectations some of the successful business firms

are aiming for total Customer Satisfaction which increase customer loyalty towards the product

or service offered by the firm

III IMPORTANCE OF CUSTOMER SATISFACTION

MISSION AND PURPOSE OF BUSINESS

The need to satisfy customer for achieving success in any commercial enterprise is so obvious

one wonder if there is any need to establish the importance of customer satisfaction However

one often finds that what should be obvious everyone also needs to be explained and establish

The income of commercial enterprise is derived from the payment received for the products and

services supplied to its external customers If there are no customers there is no income there

is no business In other words customers are the sole reason for the existence of commercial

establishments as the function is extremely important for the success of the organization the

senior management as well as the leaders of other departments or Divisions should also realize

the importance of customers to the organization and for its growth It is therefore no surprise

that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission

and purpose of every business

7

IV CUSTOMER SATISFACTION PROCESS

Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived

company performance and customer satisfaction not only for them but for their competitions as

well

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times

Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

8

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

CHAPTER II

CUSTOMER SATISFACTION

INTRODUCTION

Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a

products perceived performance in relation to his (or) her expectation

Satisfaction is a function of perceived performance and expectations If the performance falls

short of expectation the customer is dissatisfied If the performance matches the expectations

the customer is satisfied If the performance exceeds expectations the customer is highly

satisfied (or) delighted

Customer satisfaction is both a goal and a marketing tool Companies that achieve high

customer satisfaction ratings make sure that their target market knows it

Actual performance by the firm

Customer Satisfaction = ---------------------------------

Customer Expectations

5

1 CUSTOMER amp HIS IMPORTANCE -

The essence of the marketing concept is that organizations must adopt customer oriented features

and focus their attention of building programs offering and strategies that satisfy customer needs

and wants Many organizations maintain their focus on operations or product or sales efforts

and thereby get dislocated by mistaking the means for the end Successful marketing involves

companywide transformations in attitude beliefs and perceptions of the people in how they

view the customer Deep commitment to the customer is what distinguishes successful

marketers from Laggards

The excellent companies really close to their customers other companies top about it excellent

companies really close to their customers other companies to about it excellent companies do

itrsquo The companies which show extra ordinary concern for the customer include American

express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the

customerrsquos attitude is the hull mark of their service strategy

Hence Customers are -

1 The most important people in any business

2 They are not dependent of a business But business is dependent on them

3 They are not an interruption to own work they are the purpose of it

4 They are doing us favor when they come in we are not doing them favor by serving

them

5 They are part of our business they are not outsiders

6 They are not just statistic The customers are human beings with flesh and blood having

feelings and emotions

7 People come to us with their needs and wants It is our job to fulfill them

8 They are the lifeblood of every business without whom the door of the business would

have been closed

9 Non customer functions in particular must be made customer oriented Customer needs

and requirements should be tracked on regular basis

6

II CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer performance in relation to

the buyerrsquos expectations Customer satisfaction can be defined as -

Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived

performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the

different between perceived performance and expectations some of the successful business firms

are aiming for total Customer Satisfaction which increase customer loyalty towards the product

or service offered by the firm

III IMPORTANCE OF CUSTOMER SATISFACTION

MISSION AND PURPOSE OF BUSINESS

The need to satisfy customer for achieving success in any commercial enterprise is so obvious

one wonder if there is any need to establish the importance of customer satisfaction However

one often finds that what should be obvious everyone also needs to be explained and establish

The income of commercial enterprise is derived from the payment received for the products and

services supplied to its external customers If there are no customers there is no income there

is no business In other words customers are the sole reason for the existence of commercial

establishments as the function is extremely important for the success of the organization the

senior management as well as the leaders of other departments or Divisions should also realize

the importance of customers to the organization and for its growth It is therefore no surprise

that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission

and purpose of every business

7

IV CUSTOMER SATISFACTION PROCESS

Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived

company performance and customer satisfaction not only for them but for their competitions as

well

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times

Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

8

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

1 CUSTOMER amp HIS IMPORTANCE -

The essence of the marketing concept is that organizations must adopt customer oriented features

and focus their attention of building programs offering and strategies that satisfy customer needs

and wants Many organizations maintain their focus on operations or product or sales efforts

and thereby get dislocated by mistaking the means for the end Successful marketing involves

companywide transformations in attitude beliefs and perceptions of the people in how they

view the customer Deep commitment to the customer is what distinguishes successful

marketers from Laggards

The excellent companies really close to their customers other companies top about it excellent

companies really close to their customers other companies to about it excellent companies do

itrsquo The companies which show extra ordinary concern for the customer include American

express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the

customerrsquos attitude is the hull mark of their service strategy

Hence Customers are -

1 The most important people in any business

2 They are not dependent of a business But business is dependent on them

3 They are not an interruption to own work they are the purpose of it

4 They are doing us favor when they come in we are not doing them favor by serving

them

5 They are part of our business they are not outsiders

6 They are not just statistic The customers are human beings with flesh and blood having

feelings and emotions

7 People come to us with their needs and wants It is our job to fulfill them

8 They are the lifeblood of every business without whom the door of the business would

have been closed

9 Non customer functions in particular must be made customer oriented Customer needs

and requirements should be tracked on regular basis

6

II CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer performance in relation to

the buyerrsquos expectations Customer satisfaction can be defined as -

Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived

performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the

different between perceived performance and expectations some of the successful business firms

are aiming for total Customer Satisfaction which increase customer loyalty towards the product

or service offered by the firm

III IMPORTANCE OF CUSTOMER SATISFACTION

MISSION AND PURPOSE OF BUSINESS

The need to satisfy customer for achieving success in any commercial enterprise is so obvious

one wonder if there is any need to establish the importance of customer satisfaction However

one often finds that what should be obvious everyone also needs to be explained and establish

The income of commercial enterprise is derived from the payment received for the products and

services supplied to its external customers If there are no customers there is no income there

is no business In other words customers are the sole reason for the existence of commercial

establishments as the function is extremely important for the success of the organization the

senior management as well as the leaders of other departments or Divisions should also realize

the importance of customers to the organization and for its growth It is therefore no surprise

that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission

and purpose of every business

7

IV CUSTOMER SATISFACTION PROCESS

Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived

company performance and customer satisfaction not only for them but for their competitions as

well

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times

Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

8

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

II CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer performance in relation to

the buyerrsquos expectations Customer satisfaction can be defined as -

Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived

performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the

different between perceived performance and expectations some of the successful business firms

are aiming for total Customer Satisfaction which increase customer loyalty towards the product

or service offered by the firm

III IMPORTANCE OF CUSTOMER SATISFACTION

MISSION AND PURPOSE OF BUSINESS

The need to satisfy customer for achieving success in any commercial enterprise is so obvious

one wonder if there is any need to establish the importance of customer satisfaction However

one often finds that what should be obvious everyone also needs to be explained and establish

The income of commercial enterprise is derived from the payment received for the products and

services supplied to its external customers If there are no customers there is no income there

is no business In other words customers are the sole reason for the existence of commercial

establishments as the function is extremely important for the success of the organization the

senior management as well as the leaders of other departments or Divisions should also realize

the importance of customers to the organization and for its growth It is therefore no surprise

that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission

and purpose of every business

7

IV CUSTOMER SATISFACTION PROCESS

Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived

company performance and customer satisfaction not only for them but for their competitions as

well

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times

Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

8

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

IV CUSTOMER SATISFACTION PROCESS

Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived

company performance and customer satisfaction not only for them but for their competitions as

well

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times

Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

8

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

It has been found that some customers are by native tendency more likely to move while others

are not Therefore even for some level of satisfaction or dissatisfaction some customer will

remain with the brand they are loyal to while others will switch Simply because they are more

prone to taking risks and more easily susceptible to the blandishments of competitors and

inherently more fickle This can be represented in four way matrix as given below

High 1 Safe Customer Habitual Switches

Satisfaction with 3 The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1 The Safe Customers are those who are satisfied and not likely to move

2 The habitual switches are happy and still likely to switch

3 The patient ones will stay on regardless but should not be taken for granted Their

satisfaction can be improved profitably as they are inherently less likely to switch

Todayrsquos customers are global and have high degree of need for congrition recognition approval

and respect So many companies believe that customer satisfaction can make the company more

profitable to some extent as

It as a more process aimed at enhancing customer share

It builds goodwill in the market which in turn generates additional traffic to the outlet

It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with

carefully designed marketing strategies

A highly effective technique is to keep of buying habits intentions self image spending

patterns customer develops a sense of belonging in then and a soft corner for the

company itself

9

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Higher customer retention index customer lifetime value loyalty and satisfaction level

increase transactions with the same customers again and again

A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings

WHAT MARKETING SHOULD DO

Companies should establish a separate relationship market to prepare implement and

monitor their relationship marketing program

Company should not rely totally on technical people but employ relationship managers

who well equipped with marketing Communication and interpersonal skills

An integrated marketing system is a pre-requisite for building relationship with

customers

Companies should continuously search for value building approaches through a system of

quality management review process etc because only by exceeding customer

expectations marketers can build a value laden relationship with customers

As said before to satisfy a customer and to retain customer relationship marketing is

important

Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are

a) Complaint amp Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint amp Suggestion system

A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion

and complaints Some customer centered companies ndash P amp G General Electric Whirlpool

established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with

10

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

which customers can enquire make suggestion or complaints Their information flows provides

these companies with many good ideas and enable them to act more rapidly to resolve problems

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system Studies show that

customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied

customers will complaint customer may feel that their complaints are minor and they will be

made to feel stupid or that no remedy will be offered Most customers will by less or switch the

supplier than complaint The result is that the company has needlessly lost customers

Therefore companies canrsquot use complaint level as a measure of customer satisfaction

Responsive companies obtain a direct measure of customer satisfaction by conducting periodic

surveys They send questionnaire or make telephone calls to random sample of their recent

customers to find out how they feel about various aspects of the companyrsquos performance

Customer satisfaction can be measure in a number of ways It can be measured directly by

asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied

indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked

as well as to rate how much they expected of a certain attribute and also much They

experienced (desired dissatisfaction) still another method to ask respondents to list any problems

they had with the offer and to list any improvements they could suggest (Problem analysis)

finally companies could ask respondents to rate various elements of the offer in items of the

importance of the each of and how were the organization performed each element (important

performance ratings) Its last method helps the company to know if it is under performing on

important elements and over performing on relatively unimportant elements

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying the

companyrsquos and competitors products

11

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

d) Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customers

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out every element in detail customers would face huge questionnaire

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customer form being included in the survey

Some customers may want to express high dissatisfaction in order to receive more concession

E Lost Customer Analysis

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened When IBM loses a customer they amount through effort or learn where they

failed is their price too high their service deficient their products unreliable and so on Not only

it is important to conduct exit interviews but also to monitor the customer loss rate which if its

increasing clearly indicated that the company is failing to satisfy customer

Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the companyrsquos performance say

delivery we need to recognize that customers will vary in how they define food delivery it

could mean early delivery on time delivery order completeness and so on Yet if the company

had to sell out very element in detail customers would face huge questionnaire

12

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Companies should also note that managers and sales persons could manipulate their ratings on

customer satisfaction They can be especially nice to customers just before the survey They can

also try excluding unhappy customers from being included in the survey Some customers may

want to express high dissatisfaction in order to receive more concession

Observation on customer satisfaction

1 Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market On the other hand Industries that

supply a high quality homogenous product to homogenous market will register high

satisfaction

2 Customer satisfaction is lower an industries where repeal buyer faces high switching

costs They have to but from the supplier even through their satisfaction is low

3 Industries which depend upon repeat business generally create a higher level of

customer satisfaction

4 As the company increase its market share customer satisfaction call fall This is

because more customers with heterogeneous demands are drawn into buying a fairly

homogenous product

Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction The customer will engage in post purchase actions and product uses of interest to

the marketers The marketers job does not end when the product is bought but continue into the

post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos

product expectations the customer buts the product again and talks favorably or unfavorably

about the product to others

Customers from their expectations on the basis of received Messages from sellers friends and

other information sources If the seller exaggerates the benefits consumers will experience

disconfirmed expectations which lead to dissatisfaction The larger the gap between

expectations and performance the greater the consumerrsquos dissatisfaction

13

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Post Purchase Action

The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent

behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing

the product main The satisfied customer will also tend to say good things about the brand to

others Marketers lay lsquoor best advertisements is the satisfied customer

A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the

dissolvance because a human being strives to establish internal harmony ldquo consistency or

congruity among his opinions knowledge and values

Marketers should be aware of the full range of ways consumers handle dissatisfaction

Consumers have a choice between taking and not taking any action If the former they can take

public action or private action If the former they can take public action or private action If

the former they can take public action or private action Public action includes complaining to

the company going to lawyer or complaining to other groups that might help the buyer gets

satisfaction Such as a business private or government agencies or the buyer might simply stop

buying the product or warn friends In all these cases the seller losses in having done a poor job

of satisfaction to the customer

System for complaints handling amp service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25 of the time But surprising finding is that only about 5 complain The other 95

either feels that it is not worth the effort to complain or that they donrsquot know how to whom to

complain

Of the 5 of customers who complain only about 50 report a satisfactory problem resolution

Yet they need to resolve a customer problem in a satisfactory manner is critical where as on

average a satisfied customers tells three people about a good product experience dissatisfied

customer groups to people If each of them tells still other people the number of exposed to bad

work of mouth may grow exponentially

14

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

CHAPTER III Profile of Honda

HONDA MOTOR COMPANY LTD

Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds

largest manufacturer of internal combustion engines measured by volume producing more than

14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become

the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed

Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth

largest automobile manufacturer in the world

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also

manufactures garden equipment marine engines personal watercraft and power generators

amongst others Since 1986 Honda has been involved with artificial intelligencerobotics

research and released their ASIMO robot in 2000 They have also ventured into Aero space with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet

scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD

History

From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had

a great interest in automobiles He then established the Honda Technical Research Institute in

Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon

18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar

15

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked

the beginning of Honda Motor Company which would grow a short time later to be the worlds

largest manufacturer of motorcycles by 1964

Philosophy

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

Maintaining a global viewpoint we are dedicated to supplying products of the highest quality

yet at a reasonable price for worldwide customer satisfaction Hondas philosophy is based on the

companys guiding principle and advocates 2 fundamental beliefs

Respect for the Individual

Honda recognizes and respects individual differences The respect for individual stems from the

following three points

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that which will take us into the future

The Three Joys

The joy of manufacturing high quality products

The joy of selling high quality products

The joy of buying high quality products

Motorcycles

16

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006

this figure had reduced to around 550000 but was still higher than its three domestic competitors

During the 1960s when it was a small manufacturer Honda broke out of the Japanese

motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors

the story of their market entry and their subsequent huge success in the US and around the

world has been the subject of some academic controversy Competing explanations have been

advanced to explain Hondarsquos strategy and the reasons for their success

The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors The report concluded

that the Japanese firms including Honda had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope

The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda

executives responsible for the firmrsquos entry into the US market As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that

their entry into the US market was a story of ldquomiscalculation serendipity and organizational

learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff

rather than any long term strategy For example Honda1048758s initial plan on entering the US was

to compete in large motorcycles around 300 cc It was only when the team found that the

scooters they were using to get themselves around their US base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super cub

Awards

17

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

2011

Indian Motorcycle of the Year 2011 (IMOTY)

JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India

Bike of the Year ndash CNBC TV18 Overdrive Awards 2011

Bike of the Year - BloombergUTV Autocar Award 2011

Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011

CB Twister

The Most Awarded Motorcycle of the Year - 2011

Bike of the Year - BS Motoring Award 2011

Bike of the Year upto 110CC ndash Bike India

Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011

Premium 100CC Motorcycle - Zigwheels Awards

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011

Sporty Motorcycle upto 180CC ndash Zigwheels Awards

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

VFR 1200F

Superbike of the Year ndash TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011

Motorsport

18

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Honoured for Promoting 2Wheeler racing in India

2010

Brand

Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010

Trusted Brand Award (Gold) for Two-wheeler Readers Digest

CB1000R

Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheelscom

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom

Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto

Awards 2008

19

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India Best Brand Survey Awards 2008

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)

2004

Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

20

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring)

Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31 2010

Fourth Quarter Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth

quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of

JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda

Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an

increase of JPY 13895 from the corresponding period last year One Honda American

Depository Share represents one common share

Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the

quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the

same period in 2009 due primarily to increased revenue in all of the business segments and

currency translation effects Honda estimates that had the exchange rates remained the same

from the corresponding period in 2009 revenue for the quarter would have increased by

approximately 254

Consolidated operating income for the quarter amounted to JPY 960 billion (USD

1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to

increased profit attributable to increased revenue reduction in vehicle costs as a result of

increased production and decreased SGampA expenses

21

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the

same period in 2009

Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an

increase of JPY 211 billion from the corresponding period last year

Fiscal Year Results

Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended

March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the

previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share

for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous

fiscal year

Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a

decrease of 143 from the previous fiscal year primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business Honda estimates that had

the exchange rate remained the same as the previous fiscal year revenue for the period would

have decreased by approximately 75

Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an

increase of 918 due primarily to decreased SGampA expenses and RampD expenses and

continuing cost reduction efforts despite decreased profit attributable to decreased revenue the

unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of

reduced production

Consolidated income before income taxes and equity in income of affiliates for the period totaled

JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year

Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a

decrease of 58 from the previous fiscal year

22

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Racing

Honda has always played an important role in motor sports believing it to be the springboard for

technological advancement

It has also been an aggressive force in the endurance motocross and trial races held around the

world We at Honda are not allowing this momentum to let up as we pursue even greater

achievements

Honda has always loved racing ever since Sochiro Honda took his company into motorcycle

competition sometime in the 1950s Hondas engineers have tested themselves on the

international stage proving their technology to be the best in the world These technologies are

tested in the extreme conditions of motorcycle racing to adapt them for use in vehicles that ply

on roads today

In the past Honda has powered some of the all time great racers including Redman Hail wood

Spencer Gardner Capirossi and Doohan to 39 riders titles Even today some of the greatest

motorcycle racers like Alex Baros Max Biaggi Nicky Hayden ride on Honda bikes at the

races

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road

races Michael Doohan riding Repsol Hondas NSR 500

Technologies like these are not just for the race tracks but are also incorporated in our everyday

vehicles They are first tested refined and proven under the trying conditions in the races and

then finally adapted in the vehicles so that two wheelers like Activa and Dio can utilise and

benefit from such technologies

23

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

PROFILE OFVISHNU HONDA

HISTORY

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation

in October 2007 which is now popularly known as Vishnu Honda

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed

management and with sheer hard work of every staff member and above all out standing

customer support

Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing

with the challenges from competition As of now Vishnu Honda has a work force of 70

members with an annual turnover of Rs 12 crores They have also opened a separate service

station for better customer care

PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are

1 Test Rides

2 Exchange Melas

3 Mileage Contest

4 Loan Melas

5 Harding amp Wall Paintings

6 Sponsoring youth Events

7 Financing in the spot

24

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

8 Distributing pamphlets

9 Advertising in news paper

SERVICE DEPARTMENT

Head Shiva

1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc

2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles

3 Extended warranty also giving to all models except twister

4 Free Checkup Camp For everysunday

5 Engine over hauling for all Post Warranty Vehicle

6 We are giving warranty for fuel adultration for single time

7 Total Workers are 42 members

8 After Free Services 200 rupees Charged

WORKING TIME

MORNING 8AM TO 1PM EVENING 2PM TO730 PM

PRODUCTS AVAILABLE IN Vishnu Honda motors

SNo Scooter Motor Cycle Mopeds 3 wheelers

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

25

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Spare Parts

Spare Parts Incharge ndash SIVA

Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and

Customers

Total Spare Parts above 11000 Parts

Finance Level

1 The VISHNU HONDA Provides sum finance facility to the customers The

finance facility Banks are

a HDFC

b Family Credit (Pvt)

c Sriram Finance

d fulletron

The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the

Vehicle Amount The finance facility taken by the above 6000 people of them

Sales Team

Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are

sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000

to 1500 Rupees of them

The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50

Vehicle side Finance Purchase

They are not giving any offer to vehicle some times company giving insurance offer More

sales for shineunicorn

26

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept Accts Dept Work Dept Spares Dept

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst Spares

Supervisors

27

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Mechanics

CHAPTER - IV

ANALYSIS OF STUDY

AGE

Age Group

Number of

Respondents

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of

age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to

45 years of age 26users are above 46 years of age

28

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

EDUCATION

Qualification

Number of

Respondents

School Education 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that

67 of the bike users are under graduates or Graduates 11 have only school education Only

22 are post graduates

29

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

FAMILY ANNUAL INCOME

Income

Number of

Respondents

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs

In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable

generally respondents do not reveal their real incomes They have quoted their incomes as per

the Ration Cards they possess

30

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

OCCUPATION

OCCUPATION

Number of

Respondents

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80 of the bike owners are students and 17 are buiness people Only 3 are any other

31

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Duration of Usage of the Vehicle

Duration

Number of

Respondents

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle

since 5 years 46 of the users are using a vehicle for a maximum of 5 years

32

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

BRAND PATRONAGE

BRAND

Number of

Respondents

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

33

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Activa and shine are the most popular models of Honda each contributing 23 Next

popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or

Unicorn

REASONS FOR CHOSING HONDA

REASON

Number of

Respondents

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model the customers are influenced by the price of the

bike Limited importance is given to Appearance of the vehicle

34

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

INFLUENCER

Person

Number of

Respondents

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are

influenced by their family members and Self

35

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

REASON FOR CHOSING THE DEALER

REASON

Number of

Respondents

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58 of the customers have brought the vehicle from the particular dealers because he is alone

dealer 42 have preferred because the dealer is also a service dealer Schemes and finance

facility have no impact on dealer choice

36

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

SERVICE RATING

Rating

Number of

Respondents

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as

Good and 29 are average

37

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

COST OF SPARES amp SERVICE

Rating

Number of

Respondents

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are

felt that it is high and reasonable

38

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75of the customers not satisfied with service of Vishnu Honda They do not want to get service

from this dealers after free services

39

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

40

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

Honda is a major player in Two wheeler market In India almost every second motor cycle sold

is from Honda It is has many award to its credit

How strong the brand may be every organization has to strive to improve customer satisfaction

With increasing competition and customer expectations Customer Satisfaction is the key to

success of any organization

Dealers play a very important role in the marketing of any product Their role is vital mainly in

the case of consumer durables in general and automobiles in particular Unlike majority of

consumer durables automobiles need periodic maintenance Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers

can enhance or tarnish the image of the company and the product how ever good it may be

The strength of Honda motors is its channel partners and service availability every where

The findings of the study are summarized below

Majority of the Honda customers are in the age group of 18 to 25 years

Majority of them are under graduates

Honda two wheeler customers are middle class and upper middle class

Normally a customer uses a Honda vehicle to a maximum period of 10 years

Activa Unicorn and Shine brands are bread winners to Honda

Customers buy Honda for its technical features like mileage easy maintenance

superior technology etc

Customers buy Honda influenced by their friends

Customers normally prefer local dealers and service dealers for buying a vehicle

The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

41

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

customers for service and are not loyal to them for after free services are over

Cost of spares and service is slightly high

SUGGESTIONS

Regular availability of all models should be ensured Efforts have to be taken to

ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality

of after sales service as majority opined that they would not prefer the dealer after free services

Dealer and Company should ensure availability of flagship brand Activa Due to non availability

majority of the prospective customers are shifting to other company brands

Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to

ensure transparency in booking Customer feedback system after sale and service would improve

the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest

rates Dealer has to be aggressive in marketing the vehicles as they face a very tough

competition from local Honda Dealer ie Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership

Questionnaire

Name TownVillage

Reg No Model Year of Manufacture

42

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

1 Age ( Years) a 18-25 c 35-45

b 25-35 d45 above

2 Qualification a Under Graduate

b Graduate C Post Graduate

d Any Other

3Family annual Income a below 50000 b 50000 to 100000

c 1-2lakhs d 2-5lakhs

e above five lakhs

4Occupation a Student b Government Employee

C Private Employee d Business

e Any Other (Specify)

5 What type of two wheeler do you own

a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip

43

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

6 Since how long are you using the particular two wheeler

a Less than 1 year b 1-2 years c 2-5years

d 5-10years e Above 10 years

7 Specify the brand of two wheeler do you own

a Activa b Dio c aviator d shine

eDnicorn fDazzler g twister h Stunner i CBR250

8 You preferred the particular brand because of

a Price b Promotion c Appearance d Technical Factors

e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

9 Who influenced you to purchase the two wheeler

aSelf bFamily c Friends dAdvertisement e Any Other (Specify)

10 Why did you choose lsquoVishnu Honda

a Local dealer b Service dealer c Schemes

44

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip

11 Are you satisfied with the Vehicle a Yes b No

12 If No The reason is

a More petrol consumptionless Mileage b Less Pick Up

c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

13 How would you rate service offered by lsquoVishnu Honda for your two wheeler

a Excellent b Good c Average d Not satisfied

14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda

a Highb Reasonable cCompetitive

15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also

a Yes b No

45

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

BIBLIOGRAPHY

46

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47

BIBLIOGRAPHY

Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)

Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New

Delhi(2000)

Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)

Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)

VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp

Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)

wwwHonda2wheelers Indiacom

47