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PRESENTATION ONHONDA COMPANY

“THE POWER OFDREAMS”

10/19/2013 Babasabpatilfreepptmba.com 1



Industry Introduction

Automobile is one of the largest industries in global market. Being theleader in product and process technologies in the manufacturing sector, ithas been recognized as one of the drivers of economic growth. During thelast decade, well directed efforts have been made to provide a new look tothe automobile policy for realizing the sector's full potential for theeconomy. Aggressive marketing by the auto finance companies have also

played a significant role in boosting automobile demand, especially from the population in the middle income group.

Two-wheeler segment is one of the most important components of theautomobile sector that has undergone significant changes due to shift in

policy environment. The two-wheeler industry has been in existence in the

country since 1955. It consists of three segments viz. scooters, motorcyclesand mopeds. In India there are some MNC’s and Indian company dealing inautomobile sector. The main key players who are dealing in this sector areHero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest

player in this sector in India as well as in the world and playing a veryimportant role in two wheeler automobile sector. Hero Honda, Bajaj and

TVS are the Indian companies and Yamaha & Honda are internationalautomobile brand.10/19/2013 Babasabpatilfreepptmba.com 2



Company Introduction

Honda is the world's largest manufacturer of 2-wheelers. Itssymbol, the Wings, represents the company's unwaveringdedication in achieving goals that are unique and above all,conforming to international norms. These wings are now inIndia as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI),

a wholly owned subsidiary of Honda Motor Company Ltd.,Japan. These wings are here to initiate a change and make adifference in the Indian 2-wheeler industry. Honda's dream forIndia is to not only manufacture 2-wheelers of global quality,

but also meet and exceed the expectations of Indian customers

with outstanding after sales support.




About Honda Motorcycle & Scooter India Pvt. Ltd.

Official Name Honda Motorcycle & Scooter India Pvt. Ltd.

Established 20th Aug, 1999

Place Manesar, District Gurgaon, Haryana, India

Investment Rs. 300 Crore

Representative Mr. Shinji Aoyama, President & CEO

Factory Location Manesar, District Gurgaon, Haryana, India

Production Capacity 10,000,00 Units per Year




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

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

Indian customers with outstanding after sales support. They

aim to produce technologically superior, efficient and

reasonably priced 2-wheelers, with Honda tested technology,

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




Mission Statement

“Human Use of Human Ideas”




Vision Statement

“To Achieve the Most Admired Brand

Status by 2010”




Objectives

Respect for individuals.

- Initiative

- Equality

- TrustThe three joys.

- The joy of manufacturing high quality products.

- The joy of selling high quality products.

- The joy of buying high quality products.




Core and Auxiliary Needs

Core Needs Auxiliary Needs Brands

Transportation Speed, Fashion Activa

Transportation Income (Middle Level) Dio

Transportation Professionals, Mileage Eterno

Transportation Fashion, Speed, Royalty Unicorn

Transportation Professionals, Life Style Shine

Transportation Speed, Fashion, Mileage Aviator

Transportation Speed, Uniqueness,

mileage, Royalty

Stunner




Orientation or Philosophy

Company AdoptedORINETATION EXTEND

(FULLY,PARTIALY,NO

T APPLICABLE)

JUSTIFICATION

Production Concept Partially This concept believes that

consumer will favor productthat are available at

reasonable prices. But

depending on growth of

economy. Honda doesn’t do

bulk production fully.Already it had experience

and relaunched the product

again.




ORINETATION EXTEND

(FULLY,PARTIALY,NO

T APPLICABLE)

JUSTIFICATION

Product Concept Fully The company has significantlyimproved quality product through a

systematic task force approach.

Selling Concept Partially Seasonal offers and discount,

festival offers.

Marketing Concept Fully Customer->Production->Customer

EX: Honda Stunner, Unicorn is

gaining popularity with younger

Male population. To keep these

customers who are conscious aboutstyle & performance, frequent

refresher and upgrades are required

emergence of starter.




ORINETATION EXTEND

(FULLY,PARTIALY,NOTAPPLICABLE)

JUSTIFICATION

Societal Marketing

Concept

Partially Societal welfare,

Sponsorship towards

Educational Institutions.




Company SWOT Analysis

Strength Reliable brand name

Affordable price

Honda having high tech engines

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

Weakness

Less number of service centerSpares parts are not easily available

Low product range

Maintenance cost is very high10/19/2013 Babasabpatilfreepptmba.com

13



Opportunity

Increase in product range

Untapped market above 180 cc in motorcycles.

More maturity and movement towards higher-end motorcycles

Honda can be use brand image of Hero Honda

Threats There is high competition in the market

Threat of cheap imported motorcycles and components from

China

10/19/2013 Babasabpatilfreepptmba.com14



Different Brands and Features

Different Brands:

Honda Activa

Honda Dio

Honda Eterno

Honda Unicorn

Honda Shine

Honda AviatorHonda CBF Stunner

Honda CBR 1000

Honda CBF Twyster10/19/2013 Babasabpatilfreepptmba.com 15



Features of Brands

Honda Activa 102CC:“ Designed for Everyone”

FEATURES:

Flush surface.

Multi-reflector light.

Low seat with high ground clearance. Movable front fender .

Sleek and aerodynamic styling.

Low noise 4-cycle engine.

Metal Body.

CLIC mechanism.


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

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





Honda Eterno 150CC: “Get More”

FEATURES:

4-Stroke, 150cc Engine promises to

gives a mileage of 60 kmpl under

actual riding conditions.

Aerodynamic Body with masculine

looking body style..

Dual Spring Suspension technologyfor better comfort.

One-Direction Gear System.

Larger storage space under seat.

CLIC - Convenient Lift UpIndependent Cover for easy repair and

maintenance.

Waterproof and durable Stainless-

Steel inner cables and TUFFUP outer

cables.10/19/2013 Babasabpatilfreepptmba.com 18



Honda Unicorn 150CC: “ Be A Wing Rider”

FEATURES:Best pick up in its class.

It delivers an incredible 60

kms to a liter.

It is a perfect fusion of

sporty & macho design.

With Mono Suspension &

Diamond frame, it takes all

kinds of road shocks with

absolute ease.It is the only motorcycle

equipped with a puncture

resistant Tupp up Tube.




Honda Shine125CC:

FEATUES:

The Optimax engine, 02 way air

jacket and CV carburetor makes the

Shine an automatic 2 wheeler as it

reduces the usage of clutch.

New Aero dynamic design forenjoyable riding.

Intense tail lamp, aerodynamic

front cowl and fuel tank knee grip

gives shine decent and stylishlooks.


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

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



Honda Aviator 102CC: “ Live Your Style “

FEATURE:

Unique style of front facialwith large clear lens multi-

reflector lamps.

High impact resistant body.

Lightweight 12 inches alloy

wheel.

Telescopic front suspension

for better on road control.

Aviator comes with Puncture

resistant tuff-up tube.Adequate 20 Liter of under

seat space

7 bhp, 102 cc powerful engine

for power-packed performance.10/19/2013 Babasabpatilfreepptmba.com 21



Honda CBF Stunner 125CC:

FEATURE:

•Honda Stunner CBF SelfDrum with a powerful 11 bhp

Honda engine, 5 speed

transmission and a maximum

power that ensures an absolutesensational ride.

•Featured with a 4stroke, and

that facilitates quick start, this

gives you a proper mileage of

48 to 50 Km per hour, so that

you can cover distances in no

time.




Honda CBR 1000:

FEATURES:

•Sharper rear styling with

revised shape and new tail-

light with clear lens

•Sharp exhaust muffler

appearance with aluminiummuffler cover

• New graphics and colours

•Improved crankshaft inertia

mass


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



Punch lines of Brands

Honda Activa 102CC: “ Designed for Everyone”

Honda Dio 102CC: “Get Noticed ”

Honda Eterno 150CC: “Get More”

Honda Unicorn 150CC: “ Be A Wing Rider”

Honda Aviator 102CC: “ Live Your Style “




Competitor Analysis

Industry Competitor

Hero Honda

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

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

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

wheeler company and also one of the most successful joint venturesworldwide. During the 80s, Hero Honda became the first company in India.

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

TVS

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

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

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

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

towards extinction. But the company proved the doomsayers wrong and

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

incorporated in 1982 to manufacture two-wheelers in collaboration with

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

industry.

Industry Competitors




Industry Competitor

BAJAJ

Bajaj is the first Indian two wheeler automobile company in the

market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/sBacharj trading corporation private

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

license from the Government of India to manufacture two- and

three-wheelers vehicles in 1959.

Yamaha

Yamaha Motor Corporation is the auto mobile company of Japan

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

technology in India from last two decades. Yamaha Motor India

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

motor corporation, Japan




Brand Competitors

Brands CompetitorsHonda Activa, Honda Dio,

Honda Aviator, Honda

Eterno

Hero Honda Pleasure, TVS Scooty Pep ,TVS Scooty,

Bajaj Wave.

Honda Unicorn Bajaj Pulsar DTS-i, Hero Honda CBZExtreme, Hero Honda Achiever, Hero Honda

Ambition.

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

Victor GLX, Hero Honda Passion Plus, Hero HondaSplendor NXG, Yamaha Gladiator .

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

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



Competitor Objective

Hero Honda:

Being the most fuel efficient Company.

To develop appropriate product & excellent Quality.

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

To reach an unassailable pole position in the Indian TwoWheeler market.

To maintain high standard of ethics & social responsibilities.

To meet the quality performances & price aspirations of thecustomer.




TVS:

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

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

To achieve a significant share for international business in thetotal turnover.

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

TVS Motor strives for long-term relationships of mutual trust andinterdependence with its customers, employees, dealers andsuppliers.

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

people.




Bajaj:

Bajaj Auto continues to firmly believe in providing the customer

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

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

safety and service will be given as much consideration as

productivity, cost and delivery.

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

business operations.

Quality improvements and customer satisfaction shall be the

responsibility of every employee.




Yamaha:

YAMAHA focusing on serving their customer where they can

build long term relationships by raising their lifestyle through performance excellence, proactive design & innovativetechnology.

They are treated as employees are the most valuable assetsand they intend to develop them to achieve international levelof professionalism with progressive career development.

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

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




Assessing Strength and Weakness

Hero HondaStrengths:

Hero Honda introduced First stroke bike in the Indian market.

Hero Honda gives 80 Km/Liter Avg.

Better sale service.It has a good brand image.

It gives better service for customers.

Best customer preference.

Weakness: Suppose to be very sophisticated.

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

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



TVS

Strengths:

Ability to understand customer’s needs and wants

Recognized and established brand name

Effective advertising capability

Weakness:

They have big gap between cubic capacities of its

products..

Bikes are not attractive as compare to therecompetitors.




BAJAJ

Strengths: Highly experienced management.

Product design and development capabilities.

Extensive R & D focus.

Widespread distribution network.

High performance products across.

High export to domestic sales ratio.

Weakness:

Still has no established brand to match Hero Honda's Splendor. Not a globally recognizable brand (unlike the JV partnerKawasaki)




YAMAHA

Strengths:

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

It is the one of the oldest company in the Indian market.Bikes are available at very low price.

Weakness

Some Bikes are not attractive. No presences in scooter segment.

No presences in above 150cc bike segment.


Wh A k d Wh



Whom to Attack and Whom to

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

Competitor S W C D G B Attack Avoid Hero Honda √ √

TVS √ √

BAJAJ √ √

Yamaha √ √




Hero Honda:

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

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

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

Comparing to Honda Company, TVS Company has the

good market coverage and sales is more so they are strong

competitor and Honda should attack them.

BAJAJ:

Comparing to the Indian market the Bajaj’s has good

competition with their high CC brands to the Honda.

Yamaha:

With the innovative products of Yamaha it gives the neckto neck Competition.




Four P’s of Honda

Manufacturer

Product Price Place or

Distribution

Channel

Promotion

Honda Activa 41,000 Manufacturer

Dealer

Customer

TV Advertisement

Honda Dio 36,908 News Paper

Honda Eterno 36,526 Magazines

Honda Unicorn 57,647 Discount

Honda Shine 46,806 Festival Offers

Honda Aviator 43,104 Coupons

Honda Stunner 62,097 Snoopers

Pricing Strategy:

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

F t I fl i B i



Factors Influencing Buying

Behavior Factors High / Medium /Low

Impact

Justification

Cultural Factors High Impact Determination of wants &

Behaviors in the consumer

market. India is exposed to

values,humanitartian,peopleloyalty, emotions, love &

Affection all these influences

Buying Behavior

Social Factors High Impact Social factors like family,

neighbors, Co-workers,

friends all these are

influencing on buyer

behavior .




Factors High / Medium /Low

Impact

Justification

Personal Factors High Impact Factors like age, education,

family, occupation, life style

all these influences buying

behavior.

Psychological Factors Medium Impact Factors like motivation,

perception, learning, attitude

and beliefs influences on

buying behavior of customer.




Buying Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Behavior10/19/2013 Babasabpatilfreepptmba.com 41



Brand Honda Shine:

Need Recognition:

The customer basic need is transportation (Bike).

Information Search:

After identifying their needs they are going to search information about

the bike of different brands of companies through various ways like

Advertisements, Internet, Magazines, and visiting to Showrooms.

Evaluation of Alternatives:

After finding the information they study about various features of brands, price, service and quality of the product. The products which are similar to

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

Purchase Decision:

Evaluating all product feature and price and his taste and preference hedecided to purchase.

Post Purchase Behavior:

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




ConclusionThe study which we conducted on the two wheeler automobile

sector is a very important topic of automobile sector. Two wheelerautomobile sector is the backbone of the automobile sector in India.

After deep research, analysis and getting information aboutcompany as formulated that The Honda Motorcycle Pvt.LdtCompany achieved success in the market. Through out the study wefound the Honda having very new and modern technology in their

bikes, they have a good name and fame in National and InternationalMarket.

MNC's like Yamaha, TVS, Hero Honda, Bajaj are also giving largecompetition. Concluding the performance of the company related totwo wheeler sector in India, getting their growth and what areservices they are providing after sales. But still there is a gap

between 150cc to 225cc segment which is most preferable segment by youth today. With newer and better models are coming upcustomer has better and bigger choices to choose from. It is thecompetition on various aspects such as price, design technology,after sales services and even purchases offers, which provides to

both buyer and seller. Even many dealers are in view that todayHero Honda and Bajaj, thrives on competition.








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