72171513-Final-Project-Mehul-Jogadiya.doc

CUNSUMER BUYING BEHAVIOR OF HONDA SIEL CARS INDIA LTD.

LANDMARK AUTOMOBILE PVT.LTD. 1

TRAINING & PROJECT REPORT

ON

OPERATION OF CONSUMER BUYING BEHAVIOUR

H0NDA SIEL CARS INDIA LTD.

AT

LANDMARK HONDA

A PROJECT REPORT SBUMITTED IN PARTIAL FULFILLMENT OF THE REQEIRMENT

OF

BACHELER OF BUSINESS ADMINISTRATION

To

BHAVNAGAR UNIVERSITY,BHAVNAGAR

By

Jogadiya Mehul M.

SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT

BEHIND UNIVERSITY KARYALAY,ISCON MEGACITY

BHAVNAGAR.

BATCH-2008-11


CANDIDATE’S STATEMENT

I undersigned JOGADIYA MEHUL M. The student of T.Y.B.B.A.

Here by declare that the project work presented in this report is my own work and

has carried it out under the guidance of Mrs.PREETI UPADHYAY of SWAMI

SAHJANAND COLLAGE OF COMMERCE AND MANAGEMENT, BHAVNAGAR.

DATE: - SIGNATURE

PLACE: - BHAVNAGAR ( JOGADIYA MEHUL M.)





PREFACE

“Experience is the best teacher.”

This provide play a guiding role in including industrial visit as a part of the

curriculum of the BBA programmer at Bhavnagar University. This visit is and a



consequent report on in has allowed the student to get exposure to real business

environment.

Only theory knowledge doesn’t impart complete education, practical exposure

must accompany theoretical knowledge to add meaning to education.

To fulfill their objective industrial visit has been integral part of BBA

programmer. Such practical training develops awareness in the management as

challenges of the business world.

We were taken to “Landmark Honda” as I have trial my level best to present a

project report based on the visit.

ACKNOWLEDGEMENT

The successful completion of this project would not have been possible

without co-operation and support of my teacher, friends and above all my college.



I forward my gratitude to respected director and also extend my thanks to

my co-ordinater Mrs.Pooja Mehta & project guide Mrs.Preeti Upadhyay for

important of value guidance and co-operate day in the visit and in the making of this

report.

I am also thankful to the personnel of “Landmark Honda” for giving us their

valuable time my special acknowledgement to them who inform as above very detail

of the organization and for a company throughout unit.

Last but not the least I am thankful to Bhavnagar University for introducing

industrial visit as an internal part in BBA programme without we should have no

experience of real business.

Name :- Jogadiya Mehul M.

Class :- T.Y.B.B.A

Div :- C

Roll no :- 207

CONTENT

SR.NO. PARTICULARS PAGE NO.

1. Introduction of Car Industries 7

2. General Information 11



3. About Honda’s Product 24

4. Background of Topic 31

5. Research Methodology 42

6. Data Analysis & Interpretation 47

7. Overall Findings 67

8. Conclusion 68

9. Limitations 69

10. Suggestion 70

11. Bibliography 71

12. Annexure/Questionnaire 72

INTRODUCTION TO THE INDIAN CAR INDUSTRY

MNCs need to carefully plan their entry into emerging markets. Early

commitments to a market often result in first mover advantages that are difficult

to replicate. On the other hand, later entrants have the opportunity to learn from

the mistakes of the first entrant. The Indian car market offers useful lessons in this

context. In Indian Government removed several restrictions in a bid to attract

foreign investors into the automobile industry. Among the first to enter was



Daewoo of South Korea, with its model Cielo, targeted at the upper end of the

market. Other MNCs such as Ford and General Motors also entered the Indian

market, followed by Hyundai, Honda, Toyota and Volkswagen. In this case, we

shall examine the strategies of some of the major players in the Rs. 18,500/-

crore Indian car market and how successful they have been till date. The case is

relevant to the issues being covered in this book as the Indian car industry is

completely dominated by MNCs*, barring the lone exception, Telco.

After the new industrial revolution considerable changes have taken

place in the transportation sector, in 11 years. The Indian Car Market has

undergone phenomenal changes from the seller’s market to the buyer’s market.

The market is flooded with mid-sized cars of different segments like:-

Today we see the unusual spectacle of too many cars chasing too few

Indians. Today, one can observe that as compared to a few years back, in

today’s automobile market, a principal company offers a wide rang of models of

different segment and their variants.

Like India’s new-car industry, the used- car segment is booming, while at

the same time reflecting changing Indian lifestyles and outlooks. Unofficial

estimates gauge the unregulated used- car industry as worth US$ 3.28

billion. Organized used – car business is estimated at a more $656 million,

though no concrete studies have been conducted. But this might change, as auto

majors are now starting to open their own used-car shops, altering the haphazard

way this business was earlier conducted. They offer quality checks, evaluation,

warranties, after-sales service and rock- bottom loan options.

Analysts had expected that the tendency of car owners in

developed markets to replace their cars once in three of four years would catch

on in India by 2010-12. But the trend already seems to have arrived. “Earlier we

had people owing the same car for 20-30 years,” says Rana Sethi, partner of



used-cars dealer Popular Car Bazaar in suburban Mumbai. : “Now we have

customers changing cars every four months.”

Refusing to be denied a slice of India’s growing car- sales cake, leading

automatic makers have now entered the used-car mela (boisterous festival).

Sporting a separate brand name, manufacturers use their new-car networks to

sell used vehicle as well. Skoda has its Signature series, Ford India wants to

expand is used-car dealership – called Ford Assured – Maruti Udyog launched

True Value and Honda has Siel’s Auto Terrace.

Meanwhile, even as used – car sales soar, signs indicate that India’s

new-car market might be leveling out. After witnessing a growth-rate high of 30%

in April, sales barely touched a 10% improvement in year-on-year figures for

May. According to figures from the Society of Indian Automobile manufacturers

(SIAM), the apex body of 34 auto and auto-engine makers in India, 60,618 new

cars were sold in May, compared with 55,165 units in the same month in 2003.

But the dip id being put down to political uncertainty and a stock market dive after

May’s elections in which a Congress Party-led government came into power.

SIAM has also controversially proposed that the government scrap

about 70 million old vehicles, including 15-years-old cars and 10-years-old

commercial vehicles. Purportedly on anti-pollution, safety and health grounds, the

move could fetch the central government $984.6 million in taxes. Automakers as

well could obviously enjoy bigger benefits from enforced car buying, particularly

used-car dealers.

Expectedly, commercial-vehicle owners who own these “ancient” vehicles

are fuming. The All India Motor Transport Congress says SIAM simply wants to

sell more cars, and believes that India’s economy is “not ripe enough” to scrap

15-years-old vehicles. They threaten to launch an agitation campaign if the

government implements the proposal.



“If you think deeply enough, ordinary Indian middle-class people

are better off not owing a car just to show off that ‘we too own a car’, “Nair says

with wisdom from hindsight, “Unless the employers pay a good travel allowance

for fuel.”

A

Segment

B

Segment

C

Segment

Upper C

Segment

D

Segment

SUV

Segment

MUV

Segment

Maruti

800

Maruti ZEN/Estilo

Honda City Honda

Civic

Honda

Accord

Honda

CR –V

Mahindra

Scorpio

Maruti

OMNI

Hyundai

Santro

Hyundai

Accent/Verna

Hyundai

Elantra

Toyota

Camry

Hyundai

Terracan

Mahindra

Bolero

Maruti

Wagon-R

Chevrolette

Optra/Aveo

Hyundai

Tucson

Ford

Mondeo

Hyundai

Tuscon

Toyota

Qualish

Fiat Uno Maruti Toyota Opel Mitsubishi Toyota



Varsa Corolla Vectra Prado/Pajaro

Innova

TATA

Indica

Maruti

Esteem

Skoda

Octavia

Hyundai

Sonata

Embera

Grand

Vitara

Maruti

Gypsy

Gets Ford Fiesta Ford

Endeavor

GM

Tavera

Maruti

Alto

Maruti

Baleno

Toyota

Land

Crusier

Ford

Tempo

Trax

Maruti

Swift

Ford Escort Mercedes

M class

Fordtempo

Traveler

GM Opel

Corsa

TATA

Sumo

Mercedeze

Benz

TATA

Safari

GENERAL INFORMATION

Sr. No. Particulars Page No.

1. Introduction 12

2. History Of Honda Siel Cars India Ltd. (HSCI) 14

3. Founders 15

4. Honda’s Global Vision 15



5. Project At A Glance 16

6. B.O.D. & Corporate Auditors 18

7. Size And Form Of Organization 19

8. Plant Location & Plant Layout 19

9. Organization Chart 20

10. Dealership Network 21

INTRODUCTION TO HONDA SIEL CARS INDIA

Honda Siel Cars India Ltd., (HSCI) was incorporated in December

1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a

Siddharth Shriram Group company, with a commitment to providing Honda's

latest passenger car models and technologies, to the Indian customers. The total

investment made by the company in India till date is over Rs. 800 crores.

.



While the company sold its first 50,000 units in nearly five years, it is

today geared to sell more than 50,000 units in a single year. The Honda City, its

first offering introduced in 1997, revolutionized the Indian passenger car market

and has ever since been recognized as an engineering marvel in the Indian

automobile industry. Thereafter, HSCI launched its high-end models the Accord

and the SUV, CRV. The City ZX, JAZZ, introduced in its new avatar in 2003,

replicated the success of the earlier car. The Honda Civic, launched in India in

July 2006, too has matched the success of other Honda models and has proved

an instant hit with Indian customers.

The green-field project, spread over 150 acres, is located at Greater

Noida in Uttar Pradesh. The initial installed capacity of the plan was 30,000 cars

per annum, on two-shift basis. This is under expansion to 50,000 cars per annum

in this financial year, with a cumulative investment of over Rs. 800 crore.

currently, the plan is being run on two shifts.

The Company has plant to future raise the capacity to almost 100,000

cars per annum by the year 2011.

Company’s product include the 8th Generation Honda ‘ACCORD’,

launched in Auguest,2003 and new Honda ‘CITY’, launched in October, 2003

The company is also engaged in selling its CR-V and Civic model through the

CBU (Complete Built Unit) importation programmed from Japan.

In addition to meeting the growing demands of its popular models – City &

Accord. The “All New Civic , CR-V & JAZZ” will be a true global car model, which

will be offered to the Indian customers.



Cumulative sales till March 2006 are over 1,14,000 cars, which include

about 2,800 unit of CR-V model. Gross sales turnover for the year 2005-’06 was

over Rs. 2,600 crores and the net profit was Rs. 132 crores. The Company has

also exported CBU and components worth Rs. 11.6 crores during 2005-’06.

HISTORT OF HONDA SIEL CARS INDIA LTD. (HSCI)



HSCI was established in December 1995, with Honda Motor Co.,

(Japan) and Siel Ltd. (India) being the key promoters. The company figures

among the top players in the Indian premium and luxury car market.

HSCI started commercial production in December 1997 with its

indigenous level at over 50 %, which has been raised progressively and is

currently over 72%.

Honda Siel introduced the Honda City Car, an extremely successful

engineering marvel, in India in December 1997. In August 2000, Honda Siel

added to the line-up by introducing the Honda City VTEC.

The internationally successful Honda Accord was launched in July

2001. The company introduced its latest version, the all- new Seventh

Generation Honda Accord, in July 2003.

FOUNDERS: -

The history of the Honda Motor Company

began with the vision of man – Soichiro Honda.

His dream was personal mobility for everyone.

Soichiro Honda founded the Honda Motor



Company in 1948. In the same year, he designed and engineered the first

product of this company a 50 cc motorized bike on a bicycle frame – in his

small shed at Hamamatsu. Today, as we celebrate our 50th Anniversary,

Honda is a global company with a global viewpoint and a five-region global

strategy this is reflected in a solid commitment

to local markets and economies.

HONDA’S GLOBAL VISION: -

Soichiro’s vision was international in character. His desire was to lead

the world in technology, and make a significant contribution to the creation of

a better society. As a result, most of the products that Honda developed

started out by making a difference. Whether it was the CVCC engine in the

sixties or the solar powered car of the nineties, they all sought to challenge

and overcome conventional wisdom.

PROJECT AT A GLANCE: -

Name :Honda Siel Cars India Ltd.

Year of Establishment :1997.

Promoter :Soichiro Honda.

Slogan of the Company : The Power Of Dreams.

Registered Office :Plot A1, Sector – 40/41,

Surajpur Kasna Road,



Greater Gautam Baddha Nagar,

Uttar Pradesh – 20307.

Ph. – 011-561321-327.

Office Address :2nd floor, Kamal Theater Complex,

Safdarjun Enclave, New Delhi 110 029

Ph. 011-6170533, 6182493, 6183901

Fax : 011-6183884.

Plant Address : A-1, Sector 40/41 (Kasna),

Greater Noida Industrial Area,

Kasna Surajpur Road, Uttar Pradesh.

Ph. –011-8561262, 8561263.

Fax : 011-8561261.

Form of Organization : Multinational Company.

Company’s Principle : Maintaining a global viewpoint, they are

dedicated to supplying products of the highest

quality yet at a reasonable price for worldwide

customer satisfaction.

Collaboration : Honda Motors Company, Japan and SIEL

Group, India.

Products : City ZX , Civic, Accord, CR – V, JAZZ

Competitors : Daimler Chryler India,

Fiat India,

Ford India,

Skoda

Mercedes Benz



General Motors,

Hindustan Motors,

Hyundai Motor India,

Maruti Udyog,

TATA Engineering.

Website of the Company : WWW.HONDACARINDIA.COM

BOARD OF DIRECTORS & CORPORATE AUDITORS :

-

President & CEO : Mr. Masahiro Takadegawa

Representative Director : Mr.Takeo Fukui


http://WWW.HONDACARINDIA.COM/


Executive Vice President : Mr.Satoshi Aoki.

& Representative Director

Senior Managing and : Mr. Minoru Harada with Representative

Director panel of seven more directors.

Managing Directors : Mr.,Tatsuhiro Oyama.

Director : Mr. Satoru Kishi,

Director and Advisor : Mr.Hiroyuki Yoshino

SIZE AND FORM OF ORGANISATION: -

“ Honda Siel Cars India Ltd.” A joint venture, of “Honda Motor

Company. Japan” and “ SIEL Industries Ltd., India” is a giant scale industry

having an investment of about 800 Crores.



As Honda is having collaboration with mote than 80 companies of

different count rues are formed under the “ Multinational Co.” having

numerous branches or collaboration in other countries of the world.

PLANT LOCATION & PLANT LAYOUT:-

The factory has been set up on a Greenfield site of 150 acres in

Greater Noida Industrial Area in the State of Uttar Pradesh.

In keeping with HMCI’s policy, HMCL has replicated the plant layouts,

procedures and systems that characterize Honda’s operations throughout

Asia. These systems and procedures are tried and tested in other similar

markets for plants of similar capacities.

ORGANIZATION CHART




President & CEO

Representative Director

Executive Vice President &


Senior Managing and


Managing Directors

Director

Director and Advisor

Corporate Auditors

Operating Officer


Dealership Network : -

SR NO.

CITY DEALERS

1. AHMEDABAD LANDMARK HONDA

2. GOA COASTAL HONDA

3. VIJAYWADA SUNDARAM HONDA

4. AGRA HERITAGE HONDA

5. MUMBAI ARYA HONDA

6. GHAZIABAD PRIME HONDA

7. VISHAKAPATNAM SUNDRAM HONDA

8. MADURAI SUNDRAM HONDA

9. BHUBANESWAR HIGHWAY HONDA

10. TRIVANDRUM PENINSULAR HONDA

11. COACHIN PENINSULAR HONDA

12. BHOPAL ABHIKARAN HONDA

13. KANPUR PUSHP HONDA

14. KARNAL PRESTIGE HONDA

15. MOINAGAR RING ROAD HONDA

16. COIMBATORE SUNDARAM HONDA

17. JALANDHAR PRESTIGE HONDA

18. CHANDIGARH PRESTIGE HONDA

19. PATIALA PRESTIGE HONDA

20. LUDHIANA PRESTIGE HONDA

21. PUNE DECCAN HONDA

22. AMRITSAR PRESTIGE HONDA

23. RAJKOT LANDMARK HONDA



24 AURANGABAD DECCAN HONDA

25. CALICUT PENINSULAR HONDA

26. MANGALORE PENINSULAR HONDA

27. BANGALORE DAKSHIN HONDA

28. RAIPUR SHUBH HONDA

29. SECUNDERABAD SUNDARAM HONDA

30. MUMBAI ICHIBAAN HONDA

31. JAIPUR PINKCITY HONDA

32. MUMBAI LINKWAY HONDA

33. NASHIK RISHABH HONDA

34. INDORE ABHIKARAN HONDA

35. DELHI SOUTHEND HONDA

36. NAGPUR BHAVYA HONDA

37. DELHI RING ROAD HONDA

38. BANGALORE WHITEFIELD HONDA

39. KOLKATA WINDSOR HONDA

40. LUCKNOW FORTUNE HONDA

41. GURGAON RING ROAD HONDA

42. CHENNAI SUNDARAM HONDA

43. SURAT BHAVYA HONDA

44. VADODARA KAMDHENU HONDA.



PHOTOGRAF OF DEALERSHIP

LANDMARK HONDA AHEMDABAD



ABOUT HONDA’S PRODUCT

Introduction : -

Honda Siel Cars India Limited is proud of its commitment to offer the

very best of Honda to the Indian customer.

The company has revamped its complete product offering in the year

2003, with new versions for two of its cars, and launch of a new product, the

Honda Civic & CR -V. The old Accord and City cars have been replaced with

new generation cars – the Seventh Generation Accord and the All – New

Honda city. The company has also pioneered a new segment in the Indian

automobile industry with the launch of Honda Civic & CR-V in 2006, which

offers its customers a distinctive combination of ‘the comfort of a Sedan” and ‘

the thrills of an SUV.’ All three Honda products have well accepted and highly

appreciated in the market.

The Honda product family boasts of four names – City ZX, Accord,

Civic , CR-V AND JAZZ each of which stands out in the market and in the

roads, as yet another example of Honda excellence:

Honda City :- OUTPERFORM



Intelligent Dual and Sequential Ignition (i-DSI) engine.

High Performance, High Fuel economy & low toxic emissions.

Twin Spark Plug system.

World Leading friction reduction technology.

Colors:Tafeta White, Alabaster Silver, Nighthawk Black, Galaxy Grey,

New warm Silver, Royal red.

Price :

City 1.5 V AT : Rs. 1,007,700

City 1.5 E MT : Rs. 841,100

City 1.5 S MT : Rs. 888,100

City 1.5 V MT : Rs. 934,100

City 1.5 V MT Exclusive : Rs. 980,100

City 1.5 V AT Exclusive : Rs. 1,053,700

Honda CIVIC :-



Pure Exhilaration

Engine Type : i-VTEC, 1.8L.

5- Speed AT with Paddle Shift, Grade Logic control & Shift Lock.

Synchromesh 5 Forward, 1 Reverse.

Colors :

Habanero Red,

Galaxy Grey, Bluish Silver, Tafeta White, Alabaster

Silver, Nighthawk Black.

Price :

Civic 1.8S MT : Rs. 1,247,800

Civic 1.8V MT : Rs. 1,336,800

Civic 1.8V AT : Rs. 1,412,500

Honda Accord: -



The Unbeatable Accord

Unrivalled 3000 cc engine.

Ultimate in power & aggression, perfection.

5 speed Automatic Transmission.

Extra ordinary comfortable seating.

Colors :

Galaxy Gray, Nightawk Black, Signet White, Desert

Mist, Tafeta White.

Price :

Accord 2.4 M/T : Rs. 1,871,600

Accord 2.4 A/T : Rs. 1,946,600

Honda CR-V :-

Live Up



Intelligent 2.4, i-VTEC engine.

5 Speed Manual or Automatic Transmission.

Refined suspension.

Colors : Premium White Pearl

Night Hawk Black,

Whistler Silver Metallic,

Green Tea Metallic, New

Red Pearl.

Price :

2WD MT : Rs. 2,231,200

4WD MT : Rs. 2,379,200

4WD AT : Rs. 2,456,200



Honda jazz:-

The Honda i-VTEC engine (Intelligent Variable Valve Timing

and Electronic Lift Control) in the Honda Jazz is designed to give you just the right

mix of power and fuel efficiency. Add to that the Drive by Wire system and you have

a combination that responds at the touch of the throttle. With Honda, as always,

power meets responsibility. The Jazz is E10 compatible and it also meets Euro IV

emission levels to make sure that all it spreads is happiness all around.

Colour:-

deep sappir blue,sherbet blue,rallye red,alabaster silver,tafeta

white,cristal black pearl.

Price:-

Jazz : Rs. 738,500

Jazz Select Edition : Rs. 748,500



Jazz X : Rs. 780,646 (including standard kit)

PRICING POLICY:-

Pricing Policy is the standing answer of the firm to requiring problem of

pricing. It provides guidelines to marketing manager to solve appropriate

pricing decision. If competition is mainly on price bases then each marketer

generally prices their product at the same time level their competition.

Honda Siel Cars India Ltd. Itself sets the prices of cars and the margin

of dealer’s commission is added in the company price list.

BACKGROUND OF TOPIC

SR. NO. PARTICULARS Page No

1. Study of Consumer Buying Behaviour 32



2. Factors affecting Consumer Buying Behaviour 34

3. Marketing Past And Present 38

4. Market Competitiveness 38

5. Emerging Tools Of Marketing Used By Honda 40

6. Marketing Research 41

STUDY OF CONSUMER BAYING BEHAVIOUR

Introduction

The study of consumers helps firms and organizations improve their marketing

strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between

different alternatives (e.g., brands, products, and retailers);


http://www.consumerpsychologist.com/cb_Introduction.html


The psychology of how the consumer is influenced by his or her environment

(e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other marketing

decisions;

Limitations in consumer knowledge or information processing abilities

influence decisions and marketing outcome;

How consumer motivation and decision strategies differ between products

that differ in their level of importance or interest that they entail for the

consumer; and

How marketers can adapt and improve their marketing campaigns and

marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups, or

organizations and the processes they use to select, secure, use, and dispose of

products, services, experiences, or ideas to satisfy needs and the impacts that these

processes have on the consumer and society." Although it is not necessary to

memorize this definition, it brings up some useful points:

Behavior occurs either for the individual, or in the context of a group (e.g.,

friends influence what kinds of clothes a person wears) or an organization

(people on the job make decisions as to which products the firm should use).

Consumer behavior involves the use and disposal of products as well as the

study of how they are purchased. Product use is often of great interest to the

marketer, because this may influence how a product is best positioned or how

we can encourage increased consumption. Since many environmental

problems result from product disposal (e.g., motor oil being sent into sewage

systems to save the recycling fee, or garbage piling up at landfills) this is also

an area of interest.

Consumer behavior involves services and ideas as well as tangible products.

The impact of consumer behavior on society is also of relevance. For

example, aggressive marketing of high fat foods, or aggressive marketing of



easy credit, may have serious repercussions for the national health and

economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategy—i.e., for making better marketing

campaigns. For example, by understanding that consumers are more

receptive to food advertising when they are hungry, we learn to schedule

snack advertisements late in the afternoon. By understanding that new

products are usually initially adopted by a few consumers and only spread

later, and then only gradually, to the rest of the population, we learn that (1)

companies that introduce new products must be well financed so that they

can stay afloat until their products become a commercial success and (2) it is

important to please initial customers, since they will in turn influence many

subsequent customers’ brand choices.

A second application is public policy. In the 1980s, Accutane, a near miracle

cure for acne, was introduced. Unfortunately, Accutane resulted in severe

birth defects if taken by pregnant women. Although physicians were instructed

to warn their female patients of this, a number still became pregnant while

taking the drug. To get consumers’ attention, the Federal Drug Administration

(FDA) took the step of requiring that very graphic pictures of deformed babies

be shown on the medicine containers.

Social marketing involves getting ideas across to consumers rather than selling

something. Marty Fishbein, a marketing professor, went on sabbatical to work for the

Centers for Disease Control trying to reduce the incidence of transmission of

diseases through illegal drug use. The best solution, obviously, would be if we could

get illegal drug users to stop. This, however, was deemed to be infeasible.

FACTOR AFFECTING CONSUMER BYING

BEHAVIOUR

Consumer behavior refers to the selection, purchase and

consumption of goods and services for the satisfaction of their wants. There are

different processes involved in the consumer behavior. Initially the consumer tries to



find what commodities he would like to consume, then he selects only those

commodities that promise greater utility. After selecting the commodities, the

consumer makes an estimate of the available money which he can spend. Lastly, the

consumer analyzes the prevailing prices of commodities and takes the decision

about the commodities he should consume. Meanwhile, there are various other

factors influencing the purchases of consumer such as social, cultural, personal and

psychological. The explanation of these factors is given below.

1. Cultural Factors

Consumer behavior is deeply influenced by cultural factors such as: buyer culture,

subculture, and social class.

• Culture

Basically, culture is the part of every society and is the important cause of person

wants and behavior. The influence of culture on buying behavior varies from country

to country therefore marketers have to be very careful in analyzing the culture of

different groups, regions or even countries.

• Subculture

Each culture contains different subcultures such as religions, nationalities,

geographic regions, racial groups etc. Marketers can use these groups by

segmenting the market into various small portions. For example marketers can

design products according to the needs of a particular geographic group.

• Social Class

Every society possesses some form of social class which is important to the

marketers because the buying behavior of people in a given social class is similar. In

this way marketing activities could be tailored according to different social classes.

Here we should note that social class is not only determined by income but there are

various other factors as well such as: wealth, education, occupation etc.

2. Social Factors



Social factors also impact the buying behavior of consumers. The important social

factors are: reference groups, family, role and status.

• Reference Groups

Reference groups have potential in forming a person attitude or behavior. The

impact of reference groups varies across products and brands. For example if the

product is visible such as dress, shoes, car etc then the influence of reference

groups will be high. Reference groups also include opinion leader (a person who

influences other because of his special skill, knowledge or other characteristics).

• Family

Buyer behavior is strongly influenced by the member of a family. Therefore

marketers are trying to find the roles and influence of the husband, wife and children.

If the buying decision of a particular product is influenced by wife then the marketers

will try to target the women in their advertisement. Here we should note that buying

roles change with change in consumer lifestyles.

• Roles and Status

Each person possesses different roles and status in the society depending upon the

groups, clubs, family, organization etc. to which he belongs. For example a woman is

working in an organization as finance manager. Now she is playing two roles, one of

finance manager and other of mother. Therefore her buying decisions will be

influenced by her role and status.

3. Personal Factors

Personal factors can also affect the consumer behavior. Some of the important

personal factors that influence the buying behavior are: lifestyle, economic situation,

occupation, age, personality and self concept.

• Age

Age and life-cycle have potential impact on the consumer buying behavior. It is

obvious that the consumers change the purchase of goods and services with the



passage of time. Family life-cycle consists of different stages such young singles,

married couples, unmarried couples etc which help marketers to develop appropriate

products for each stage.

• Occupation

The occupation of a person has significant impact on his buying behavior. For

example a marketing manager of an organization will try to purchase business suits,

whereas a low level worker in the same organization will purchase rugged work

clothes.

• Economic Situation

Consumer economic situation has great influence on his buying behavior. If the

income and savings of a customer is high then he will purchase more expensive

products. On the other hand, a person with low income and savings will purchase

inexpensive products.

• Lifestyle

Lifestyle of customers is another import factor affecting the consumer buying

behavior. Lifestyle refers to the way a person lives in a society and is expressed by

the things in his/her surroundings. It is determined by customer interests, opinions,

activities etc and shapes his whole pattern of acting and interacting in the world.

• Personality

Personality changes from person to person, time to time and place to place.

Therefore it can greatly influence the buying behavior of customers. Actually,

Personality is not what one wears; rather it is the totality of behavior of a man in

different circumstances. It has different characteristics such as: dominance,

aggressiveness, self-confidence etc which can be useful to determine the consumer

behavior for particular product or service.

4. Psychological Factors



There are four important psychological factors affecting the consumer buying

behavior. These are: perception, motivation, learning, beliefs and attitudes.

• Motivation

The level of motivation also affects the buying behavior of customers. Every person

has different needs such as physiological needs, biological needs, social needs etc.

The nature of the needs is that, some of them are most pressing while others are

least pressing. Therefore a need becomes a motive when it is more pressing to

direct the person to seek satisfaction.

• Perception

Selecting, organizing and interpreting information in a way to produce a meaningful

experience of the world is called perception. There are three different perceptual

processes which are selective attention, selective distortion and selective retention.

In case of selective attention, marketers try to attract the customer attention.

Whereas, in case of selective distortion, customers try to interpret the information in

a way that will support what the customers already believe. Similarly, in case of

selective retention, marketers try to retain information that supports their beliefs.

• Beliefs and Attitudes

Customer possesses specific belief and attitude towards various products. Since

such beliefs and attitudes make up brand image and affect consumer buying

behavior therefore marketers are interested in them. Marketers can change the

beliefs and attitudes of customers by launching special campaigns in this regard.

MARKETING PAST AND PRESENT :-

Marketing may be defined as the process of exchange between seller and

buyer. But it also involves various other activities such as planning, promotion,



distribution, pricing, services, etc. in order to meet the wants and needs of both

the parties in a transaction.

Marketing does play an important in the development of Honda but the

basic criteria of Honda is always to develop a product keeping in mind the wants

and requirements of the consumers. Before entering the Indian market, Honda

checked out the requirements of the Indian buyers and then launched their “ City”

model, which came out as The Best in its class.

Today renewing their “City” model and “Accord” model Honda still

Holds the grip over the Indian buyers and now they have launch new model Civic

and CR-V in 2006.

MARKETING COMPETITIVENESS :-

Each and every business faces competition the automobile industry

faces competition. Honda also faces competition from some of the other world

class car manufacturers like:

1. Daimler Chryler India,

2. Fiat India,

3. Ford India,

4. Skoda

5. Mercedes Benz

6. General Motors,

7. Hindustan Motors,

8. Hyundai Motors India,

9. Maruti Udyog,

10.TATA Engineering.

The company has with held its position in this stiff competition also.

The main reason behind quality of the product and the trust, which it has

gained from the consumers.



Competitive Advantage :-

Honda products in the world are regarded as the most innovative and

advanced in terms of technology. It has been a world leader in technology

right from its inception. its v-tech engines and v-6 engines have become world

famous.

Moreover, Honda renovates the car models from time to time, which

keep them along with the changing demand of the customers. Recently they

have changed their “City” and “Accord” model and both of them have become

a grand success. They have introduce their new model All new CR-V and

Civic.

EMERGING TOOLS OF MARKETING USED BY THE

HONDA

Marketing plays an important role in the success of any business. A

company needs to follow the latest trend if they want to withstand the ever-

growing competition.



HSCI uses various latest marketing tools. One of such tool is that of

web facility. The company provides full information about any of its product on

the Internet. They also have an online feedback form whereby the customers

can view their ideas about the products and other queries to the company.

Moreover other strategy, which Honda uses to stay with the generation, is by

modifying their cars at a certain fixed point of time . This strategy gives them

an edge over their competitors and also develops curiosity among the

customers.

MARKETING RESEARCH :-

“MARKETING RESEARCH is the systematic design, collection, analysis and

reporting of data and finding a reveal to a specific marketing situation facing the

company “



The Marketing Research, of HONDA is carried very extensively. The research

job is done from the specialist agencies for it. In this process, sample surveys though

questionnaires are the most commonly used method. In the research the attributes

that come above are: -

Effective Marketing Research involves the following

steps :-

Research Methodology


Define the problem & Research Objective

Develop The Research Plan

Collect Information

Analyze The Information

Present Findings


INDEX

SR. NO. PARTICULARS Page No

1. Introduction 43

2. Research Objective 43

3. Develop the Research

Plan

44

-- Data Sources 44

-- Research Approaches 45

-- Research Instruments 45

-- Sampling Plan 45

-- Contact Methods. 46

Introduction: -

The Research Methodology is the method or path used in studying the problem.

If indicates the path of research objective to findings.



Research Methodology or Research design is a method about how to go with the

research what will be the Schedule of research etc. It answers the questions like

what type of research should be done, what should be the sample size, what type

of data should be collected, what would be the data collection tool, how the data

will be interpreted and how findings will be implement etc.

Research Objective : -

“Marketing research is the systematic design, collection, analysis and reporting of

data and findings relevant to a specific marketing situation facing the company.”

The first step calls for the marketing research to find the problem carefully and

agree on research objective a problem well defined is solved. “The main

objective of my research work is to find out Consumer Awareness of Landmark

Honda.

HSCI has selected the following as its objectives.

Removal of misunderstanding about the Product.

Expansion of Market

Collect favorable Public Opinions.

To boost up the sales

To Strengthen the brand image.

To increase popularity of company’s product

To introduced a new product in market

To develop corporate image.

To Support and Stimulate dealers and salesman’s selling efforts

To position the brand in the target Market.



Develop the Research Plan : -

The Second Stage of marketing research calls for developing the most efficient

plan for gathering the needs information. Designing a research plan calls for

decisions on the followings.

Data Sources :-

The researcher can gather the data from primary or secondary

source. The primary data are the original data which collected by the

researcher only, and the sources for the primary data are consumers,

dealers, salesman etc. The Secondary data are the readymade. Data

collected by someone use in past. The sources for secondary data are

the published survey, general library, media, internal reports etc.

For this research reports, I have chosen primary data source

collected through customers of the Rajkot district.

Research Approaches :-

There are various approaches of research primary data can be

collected in different ways like observation, focus group, Surveys,

behavioral data, experiments etc. Out of this I had gone for survey. Survey



is the best-suited method for descriptive research to learn about people’s

knowledge, beliefs, preferences and satisfaction directly.

Research Instruments :-

The best instruments in collecting primary data for research are the

questionnaires. Questionnaire consists of a set of questions presented to

respondents for their answer. Various types of questions, proper

sequence, flexibility, easy and interesting are the main ingredients of a

good Questionnaire.

Sampling plan : -

After deciding on the research approach and research instrument,

it is necessary to design sampling plan. This plan consist of 3 main

decisions :

Sampling Unit : -

Sampling unit should be clefined in a research the target

population that will be sampled. Once the Sampling unit is determined,

a sampling frame must be developed so that everyone in the target

population has an equal chance of being Sampled In this regard, the

sampling unit for this survey is all the customers who visit Landmark

Honda. The Survey is done at the Landmark Honda only.

Sample Size :-



How many people should be surveyed? Large samples give

more reliable result then small samples. However, it is not possible for

each & every unit of population to get selected as a sample. samples of

less than 1% at the population can often provide good reliability given a

credible sampling procedure. So I had decided to take the sample size

of 100 customers from ahemdabad and bhavnagar only.

Sampling procedure :-

How should the respondents to be chosen? I have selected

customers of ahembad and bhavanagar .

Contact Method : -

Once the sampling plan has been determined, it must be decided

how the subject should be contacted. There are mainly four method to

contact the respondents; mail, telephone, personal or direct contact and

online interviews. so for my research I had selected the direct/personal

contact. As it is the most effective method, the interviewer can ask more

questions and record additional observation about the respondent. This

method is require more administrative planning and Supervision and also

takes much time for survey but give more effective result also.

Data Analysis and Interpretation

Q. 1 Gender :-

Result:-

Gender Respondent

Male 64



Female 36

Graphical Presentation:-

Interpretation:-

The above chart shows the gender of the respondents,

from the total sample size of 100, there are 64% male & 36% Female.

Q. 2 Age Group :-

Result:-


Age Group No. of Respondents

20 to 30 years 12

30 to 40 years 42

40 to 50 years 30

50 Above 16

Male

Female

36% 64%



Interpr

etatio n:-

According

to the result,

we may

see that

most at the consumer who came to enquire about Honda are from age group

of 30 to 40 years. Not only that, 30 consumers were from mid age group of 40

to 50 and 16 consumers were above 50 years which shows the car’s

characteristics. We can say that the Company is successful in targeting the

right consumers.

Q.3 What is your Educational Qualification ?

Result:-

Education Respondents

Under – Graduate 23

Graduate 29

Post – Graduate &above

17

Professional 31


0

10

20

30

40

50

20 to 30 30 to 40 40 to 50 50 Above

Age Group

Resp

onde

nt



Int

erp reta

tio n:-

The

above

chart shows

the

qualification of the respondents, from the total sample size of 100, most of the

consumers are professional and minimum consumers are post graduate degree

holder.

Q.4 What is your Occupation?

Result:-

SR. No. Particulars Respondents.

1 Business 31

2 Industrialist 6

3 Profession 22

4 Service / job 21

5 Student 12

6 others 8


Res

pond

ent

Education

Resp

onde

nt

0

5

10

15

20

25

30

35

Under –Graduate

Graduate Post –Graduate&above

Professional

Resp

onde

nt



Interpretation:-

The above chart shows the occupation of the respondents, from the

total sample size 100, According to the research for consumer awareness

most of the consumers are businessman and minimum consumers are

industrialist.

Q.5 What is your approximate annual Income?

Result:-


Particulars Respondents.

Less than 3,00,000 15

3,00,000 -5,00,000 28

5,00,000 -10,00,000 26

10,00,000 Above 11

0

10

20

30

40

Business IndustrialistProfession Service /job

Student others

occupation

Resp

onde

nt

28



Interpretation:-

Out of 100 customer, 80 customer are earning so out of 80 customer.

19 % are lower class level.

35 % lowers middle class people

32% middle class level

14% upper class level.

Q.6 Do you have a car?

Result:-

Particulars Respondents

Yes 74

No 36


Income

0

5

10

15

20

25

30

less than 3lacs

3 to 5 lacs 5 to 10 lacs 10 lacsAbove

Resp

onde

nt

28



Interpretation:-

From above chart we may conclude that from 100 consumers selected for

research , 74 % already having their own car, where as 36% not having any car

currently.

Q.7 If yes, which car do you have?

Specify the product name

Result:-



Honda 15

Tata 20

Hyundai 12

Ford 4

Maruti 15

Other 10

Respondents.

Yes

No

36% 74%



Interpretation:-

From the above data most of the consumers have Tata’s

Product and Maruti Product because of less prize.

Q.8 Are you aware about Honda’s Product ?

Result:-

Answer Yes No

Respondents 100 0


Resp

onde

nt

28

0

5

10

15

20

25

Honda Tata Hyundai Ford Maruti other



Interpretation:-

From the above chart all the consumers are aware about

Honda company.

Q.9 Which car you want to buy from Honda

company ?

Result:-


Car Respondents

Honda city ZX 40

Honda civic 26

Honda Accord 16

Honda CR-V 10

Honda JAZZ 8

100 %



Interpretation:-

The above chart Shows that most of the consumers want to buy a

Honda City and minimum consumers want to buy a Honda JAZZ.

Q.10 From which Source do you come to know about

Honda

company ?

Result:-


Friends 58

Advertisement 26


Car

Resp

onde

nt

28


Company’s Executive 16


Int erpretati

on:-

From above

chart it is clears that

most of the consumer

know about Honda

company by their friends

and minimum

consumers know about

Honda company by company’s Executive.

Q.11 While purchasing a Honda car, which factor

influence yours decision Most?

Result:-


Price 20

Product 5

Brand Name Honda

63

Services 12



0

10

20

30

40

50

60

Friends Advertisement Company’sExecutive

Resp

onde

nt

28

0

20

40

60

80

Price Product BrandNameHonda

Services


Interpretation:-

The above chart shows that majority of the consumers agreed with Brand

name and minimum consumers agreed with the product.

Q.12 While purchasing Honda product, which factors do

you want from following ?

Result:-


Comfort 14

Looks 34

Price 10

Mileage 42



Resp

onde

nt

28


Interpretation:-

The above chart shows that most of the consumers want a more Mileage in

Product. And minimum consumers go for product’s price.

Q.13 Would you like to purchase a Honda product?

Result:-

Answer Yes No

Respondents 63 37



0

10

20

30

40

50

Comfort Looks Price Mileage

Res

po

nd

en

ts

Yes

No.37%

63%


Interpretation:-

Because considering all the above factor, most of the consumers are

sure to purchase a car. Where as rest of the consumers are not sure to

purchase a car. This shows consumers awareness and determination in the

mind of themselves by this way one may get maximum response from the

consumers and turn their visit in a successful sales deal.

Q.14 While purchasing any Honda product which

benefits do you consider

most?

Result:-


Services 24

Warranty 30

Schemes 28

Other facility 18



Res

pon

den

ts

Benefits0

5

10

15

20

25

30

Services Warranty Schemes Other facility

0

10

20

30

40

50

60

70

Reference Adds: T.V.News Paper,Magazine,Hoarding

Others


Interpretation:-

The above chart shows that, most of the consumer want warranty as a

benefits.

Q.15 From following promotional activity by which do you

aware about Honda company?

Result:-




Reference 61

Adds: T.V.,News Paper, Magazine, Hoarding

24

Others 15

Resp

onde

nts

Promotional Activity


Interpretation:-

From the above chart it is clear that most of the persons know

about Honda company by other reference

Q.16 What do you feel about activities like discount, loan, festival offers of Honda Company’s Showroom?

Result:-

Answer Excellent Good Ok Poor

Respondents 44 30 18 8


Interpretation:-


0

10

20

30

40

50

Excellent Good Ok Poor

Res

po

nd

ents


The above chart shows that , the consumers want some benefits

while purchasing a car, the consumer rated the activities as of the best nature and

this replay was as most of them rated as excellent and good.

Q.17 How do you rate dealership showroom facility in terms of

appearance, comfort, cleanliness, car display and layout?

Result:-

Answer Excellent good Ok Poor



Inte rpret

ation: -

The

above chart shows that The customers rated the dealership showroom facility as of

the best nature and again replay was positive side most of them rated as good.


0

5

10

15

20

25

30

35

40

Excellent good Ok Poor

Resp

onde

nts


Q.18 How would you compare Honda car with other

competitive Brand ?

Result:-


Inte srpret

ation :-

This result shows the effect of the car on the mind of the

customers. From all 100, most the customers replay was excellent and minimum

customers rated with the car as poor. This is unavoidable as one can not make

anything like perfect in all respect because tastes and nature of each customer is

different and it affects a lot on their choice.


Answer Excellent good Ok Poor


0

5

10

15

20

25

30

35

40

Excellent good Ok Poor

Resp

onde

nts


Q.19 How was the overall experience at the Honda premises

(Landmark Honda) you visited ?

Result:-

Answer Excellent Good Ok Poor



Inter pretat

ion:-

This data shows the overall experience of all 100 customers who

visited the showroom. The overall experience of the entire customer with the

dealership was goods as they rated the sales deal as a nice experience.

Neither of them found any fault during the deal.


Res

po

nd

ents

0

10

20

30

40

50

Excellent Good Ok Poor


Q.20 Give your suggestion about Honda Company.

Objective:-

To give the consumers thoughts space where he may express his

views or drawbacks of the car, to let him point out any thing to be improve in

the car, about Service or anything relating to the car.

Customers want a small car, which can be affordable to a common

man as a result everyone can enjoy the benefits of Honda.



Overall Findings

As we see in the previous pages of analysis, the emphasis was

on the study of the consumer buying behavior which is the topic of the study the

overall analysis of these all findings will conclude the fact and suggestions which

came to know by this analysis. All the consumers are well aware about Honda

Company and all of the consumers have agreed that the Services of give by the

Honda Company is very good

CONCLUSION



The industrial training and preparation of this report have been very

useful for me to get a look into the real business environment whether it is

external or internal. The opportunity given to me has created the awareness

of real business world and extraordinary knowledge in the excellent field of

marketing. Honda is fulfill three parameters like maintenance , excellent

mileage, advance technology hence the success ratio is high.

HSCI is forgoing ahead into the new millennium rapidly. HSCI always

be the first to introduce the technologies of the future to the consumer and

always be in the disciplined mode of achieving perfection in al of its actives

for making the benchmark in the corporate world.

HONDA’S slogan: Power Of Dreams

MM CONCEPT: Man Maximum Machine Minimum

HONDA

Well known brand globally

It can be said HONDA is truly future technology



LIMITATIONS Each and every study has several limitations so in my study. The limitations are as

under.

1. The major limitation of the research is the size of the sample. I have analyzed

Ahemdabad and Bhavnagar corporate with the total sample size 100 only.

Therefore the analysis may not show a clear picture of the Ahemdabad and

Bhavnagar corporate.

2. Time and cost were always a constraint.

3. I conduct survey only on corporate so it gives only corporate data and not

data of others customers.

4. Respondents were not open in providing the required information



SUGGETIONS

It is not enough to understand and learn about concept of a

multinational say for example HSCI, but from my study I would like to

represent following suggestions that should be taken considerably by the

company.

1. Company should also try to introduce a small car, which can be

affordable to a common man as a result everyone can enjoy the

benefits of Honda.

2. Company should try to improve production so waiting period is less in

comparison of demand.

3. Company should a increase the range of product to fulfill different

need of different customer at different level.

BIBLIOGRAPHY



For getting the information for the aspects of theory and practical

knowledge. I have referred below listed Books and Web Sites:-

1. Marketing Management – Philip Kotler.

2. Marketing Management – Sherlekar.

3. WWW.WHATAHONDA.COM

4. WWW.HONDACARINDIA.COM

Market Research On Consumer buying

behaviour Of

Landmark Honda


http://WWW.HONDACARINDIA.COM/


Note :-

1. This research is for educational purpose only.

2. Please tick mark the appropriate box.

3. please give up the relevant information.

Name :-

Address :-

Ph. No. :- Mobile No. :-

1. Gender :- Male :

Female :

2. Age :- 20 to 30 year

30 to 40 year

40 to 50 year

50 Above

3. What is your Educational Qualification ?

Under - Graduate

Graduate



Post – Graduate

& Above

Professional

4. What is your Occupation?

Business

Industrialist

Professional

Service /job

Student

Other

5. What is your approximate annual income ?

Below 3,00,000

3,00,000 – 5,00,000

5,00,000 – 10,00,000

10,00,000 Above

6. Do you have a car?

Yes

No



7. If Yes, which car do you have ?

Specify the Product Name

Honda

Tata

Hyundai

Ford

Maruti

Other

8. Are you aware about Honda’s Product ?

Yes

No

9. Which Car do you want to buy from Honda Company?

Honda City ZX

Honda Civic.

Honda Accord

Honda CR-V

Honda JAZZ

10 From which source do you come to know about Honda Company ?

Friends

Advertisement

Company’s executives



11 While Purchasing a Honda Product, which factor influence your

decision Most?

Price

Product

Brand Name (Honda)

Services

12. While Purchasing Honda Product, which factor do you want from

following?

Comfort

Looks

Price

Mileage

13 Would You like to purchase a Honda Product ?

Yes

No

14 While purchasing any Honda Product which benefits do you

consider most?

Services

Warranty



Schemes

Other Facility

15. From following promotional activity by which do you aware

About Honda Company?

T.V. Ads.

Newspaper

Magazine

Hoardings

16. What do you feel about actives like discount, loan, festival offers of

Honda Company’s Showroom?

Excellent

Good

Ok

Poor

17. How do you rate dealership showroom facility in terms of

appearance, comfort, cleanliness, car display and layout?

Excellent



Good

Ok

Poor

18. How would you compare Honda car with other competitive

Brand ?

Excellent

Good

Ok

Poor

19. How was the overall experience at the Honda premises

(Landmark Honda) you visited ?



Excellent

Good

Ok

Poor

20 . Give your suggestion about Honda Company.


72171513-Final-Project-Mehul-Jogadiya.doc

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