PRESENTATION ON HONDA COMPANY “THE POWER OF DREAMS” 10/19/2013 Babasabpatilfreepptmba.com 1
PRESENTATION ON
HONDA COMPANY
“THE POWER OF
DREAMS”
10/19/2013 Babasabpatilfreepptmba.com 1
Industry Introduction Automobile is one of the largest industries in global market. Being the
leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group.
Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian company dealing in automobile sector. The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India as well as in the world and playing a very important role in two wheeler automobile sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are international automobile brand.
10/19/2013 Babasabpatilfreepptmba.com 2
Company Introduction
Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Honda's dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support.
10/19/2013 Babasabpatilfreepptmba.com 3
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
10/19/2013 Babasabpatilfreepptmba.com 4
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.
10/19/2013 Babasabpatilfreepptmba.com 5
Mission Statement
“Human Use of Human Ideas”
10/19/2013 Babasabpatilfreepptmba.com 6
Vision Statement
“To Achieve the Most Admired Brand
Status by 2010”
10/19/2013 Babasabpatilfreepptmba.com 7
Objectives
Respect for individuals.
- Initiative
- Equality
- Trust
The three joys.
- The joy of manufacturing high quality products.
- The joy of selling high quality products.
- The joy of buying high quality products.
10/19/2013 Babasabpatilfreepptmba.com 8
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
10/19/2013 Babasabpatilfreepptmba.com 9
Orientation or Philosophy
Company Adopted ORINETATION EXTEND
(FULLY,PARTIALY,NO
T APPLICABLE)
JUSTIFICATION
Production Concept Partially This concept believes that
consumer will favor product
that are available at
reasonable prices. But
depending on growth of
economy. Honda doesn’t do
bulk production fully.
Already it had experience
and relaunched the product
again.
10/19/2013 Babasabpatilfreepptmba.com 10
ORINETATION EXTEND
(FULLY,PARTIALY,NO
T APPLICABLE)
JUSTIFICATION
Product Concept Fully The company has significantly
improved quality product through a
systematic task force approach.
Selling Concept Partially Seasonal offers and discount,
festival offers.
Marketing Concept Fully Customer->Production->Customer
EX: Honda Stunner, Unicorn is
gaining popularity with younger
Male population. To keep these
customers who are conscious about
style & performance, frequent
refresher and upgrades are required
emergence of starter.
10/19/2013 Babasabpatilfreepptmba.com 11
ORINETATION EXTEND
(FULLY,PARTIALY,NOT
APPLICABLE)
JUSTIFICATION
Societal Marketing
Concept
Partially Societal welfare,
Sponsorship towards
Educational Institutions.
10/19/2013 Babasabpatilfreepptmba.com 12
Company SWOT Analysis Strength
Reliable brand name
Affordable price
Honda having high tech engines
HMSI (Honda Motorcycle and Scooter India Pvt.Ldt) is the subsidiary company of Honda Motors Ltd. Which is the largest company in the proposed sector
Weakness
Less number of service center
Spares parts are not easily available
Low product range
Maintenance cost is very high 10/19/2013 Babasabpatilfreepptmba.com 13
Opportunity
Increase in product range
Untapped market above 180 cc in motorcycles.
More maturity and movement towards higher-end motorcycles
Honda can be use brand image of Hero Honda
Threats
There is high competition in the market
Threat of cheap imported motorcycles and components from
China
10/19/2013 Babasabpatilfreepptmba.com 14
Different Brands and Features Different Brands:
Honda Activa
Honda Dio
Honda Eterno
Honda Unicorn
Honda Shine
Honda Aviator
Honda CBF Stunner
Honda CBR 1000
Honda CBF Twyster 10/19/2013 Babasabpatilfreepptmba.com 15
Features of Brands
Honda Activa 102CC:“Designed for Everyone”
FEATURES:
Flush surface.
Multi-reflector light.
Low seat with high ground clearance.
Movable front fender.
Sleek and aerodynamic styling.
Low noise 4-cycle engine.
Metal Body.
CLIC mechanism.
10/19/2013 Babasabpatilfreepptmba.com 16
Honda Dio 102CC: “Get Noticed”
FEATURES:
Attractive body styling with
mounted head light that adds
charm to the scooter.
Light weight body enhances the
fuel economy and riding pleasure.
Sleek and aerodynamic design to
suit European styling preferences.
Effective shock absorption.
Stays balanced even during
emergency braking.
Comfortable secure seat.
A bag hook below the front end
of the seat.
Wide and spacious foot board. 10/19/2013 Babasabpatilfreepptmba.com 17
Honda Eterno 150CC: “Get More”
FEATURES:
4-Stroke, 150cc Engine promises to
gives a mileage of 60 kmpl under
actual riding conditions.
Aerodynamic Body with masculine
looking body style..
Dual Spring Suspension technology
for better comfort.
One-Direction Gear System.
Larger storage space under seat.
CLIC - Convenient Lift Up
Independent Cover for easy repair and
maintenance.
Waterproof and durable Stainless-
Steel inner cables and TUFFUP outer
cables.
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.
10/19/2013 Babasabpatilfreepptmba.com 19
Honda Shine125CC:
FEATUES:
The Optimax engine, 02 way air
jacket and CV carburetor makes the
Shine an automatic 2 wheeler as it
reduces the usage of clutch.
New Aero dynamic design for
enjoyable riding.
Intense tail lamp, aerodynamic
front cowl and fuel tank knee grip
gives shine decent and stylish
looks.
10/19/2013 Babasabpatilfreepptmba.com 20
Honda Aviator 102CC: “Live Your Style “
FEATURE:
Unique style of front facial
with large clear lens multi-
reflector lamps.
High impact resistant body.
Lightweight 12 inches alloy
wheel.
Telescopic front suspension
for better on road control.
Aviator comes with Puncture
resistant tuff-up tube.
Adequate 20 Liter of under
seat space
7 bhp, 102 cc powerful engine
for power-packed performance.
10/19/2013 Babasabpatilfreepptmba.com 21
Honda CBF Stunner 125CC:
FEATURE:
•Honda Stunner CBF Self
Drum with a powerful 11 bhp
Honda engine, 5 speed
transmission and a maximum
power that ensures an absolute
sensational ride.
•Featured with a 4stroke, and
that facilitates quick start, this
gives you a proper mileage of
48 to 50 Km per hour, so that
you can cover distances in no
time.
10/19/2013 Babasabpatilfreepptmba.com 22
Honda CBR 1000:
FEATURES:
•Sharper rear styling with
revised shape and new tail-
light with clear lens
•Sharp exhaust muffler
appearance with aluminium
muffler cover
•New graphics and colours
•Improved crankshaft inertia
mass
10/19/2013 Babasabpatilfreepptmba.com 23
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 “
10/19/2013 Babasabpatilfreepptmba.com 24
Competitor Analysis
Industry Competitor
Hero Honda
Hero Honda Motors Limited was established in 1984, as a joint venture
between India's Hero Group (world's largest bicycle manufacturers) and
Japan's Honda Motor Company. And created the world's single largest two
wheeler company and also one of the most successful joint ventures
worldwide. During the 80s, Hero Honda became the first company in India.
Over 19 million Hero Honda two wheelers running on Indian roads today.
TVS
TVS Motors is the third largest company in the two-wheeler industry with a
market share of 16%. Infect, it is the only Indian company without a foreign
collaboration in the two-wheeler industry. When the company opted out of
the collaboration with Suzuki in 2002, many believed that TVS was headed
towards extinction. But the company proved the doomsayers wrong and
came out with a very successful `TVS Victor'. TVS Motors Ltd. originally
incorporated in 1982 to manufacture two-wheelers in collaboration with
Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler
industry.
Industry Competitors
10/19/2013 Babasabpatilfreepptmba.com 25
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
10/19/2013 Babasabpatilfreepptmba.com 26
Brand Competitors
Brands Competitors
Honda Activa, Honda Dio,
Honda Aviator, Honda
Eterno
Hero Honda Pleasure, TVS Scooty Pep ,TVS Scooty,
Bajaj Wave.
Honda Unicorn Bajaj Pulsar DTS-i, Hero Honda CBZ
Extreme, Hero Honda Achiever, Hero Honda
Ambition.
Honda Shine Bajaj Discover DTS-i, Hero Honda Glamour’s, TVS
Victor GLX, Hero Honda Passion Plus, Hero Honda
Splendor NXG, Yamaha Gladiator.
Honda Stunner Bajaj Avenger DTS-i, Hero Honda Karizma, TVS
Apache, Yamaha FZ. 10/19/2013 Babasabpatilfreepptmba.com 27
Competitor Objective
Hero Honda:
Being the most fuel efficient Company.
To develop appropriate product & excellent Quality.
To meet the demands of the sophisticated markets in Europe & America.
To reach an unassailable pole position in the Indian Two Wheeler market.
To maintain high standard of ethics & social responsibilities.
To meet the quality performances & price aspirations of the customer.
10/19/2013 Babasabpatilfreepptmba.com 28
TVS:
TVS Motor will be responsive to customer requirements consonant with its core competence and profitability.
Customer satisfaction by giving the customer the right product, at the right price, at the right time.
To achieve a significant share for international business in the total turnover.
TVS Motor will support and encourage the process of self-renewal in all its employees and nurture their sense of self worth.
TVS Motor strives for long-term relationships of mutual trust and interdependence with its customers, employees, dealers and suppliers.
TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people.
10/19/2013 Babasabpatilfreepptmba.com 29
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.
10/19/2013 Babasabpatilfreepptmba.com 30
Yamaha:
YAMAHA focusing on serving their customer where they can build long term relationships by raising their lifestyle through performance excellence, proactive design & innovative technology.
They are treated as employees are the most valuable assets and they intend to develop them to achieve international level of professionalism with progressive career development.
Yamaha conduct their business ethically and socially in a responsible manner with concerns for the environment.
Grow through continuously innovating their business processes for creating value and knowledge across their customers thereby earning the loyalty of their partners & increasing their stakeholder value.
10/19/2013 Babasabpatilfreepptmba.com 31
Assessing Strength and Weakness Hero Honda
Strengths:
Hero Honda introduced First stroke bike in the Indian market.
Hero Honda gives 80 Km/Liter Avg.
Better sale service.
It has a good brand image.
It gives better service for customers.
Best customer preference.
Weakness:
Suppose to be very sophisticated.
They have big gap between cubic capacities of its products..
Spare parts are too costly. 10/19/2013 Babasabpatilfreepptmba.com 32
TVS
Strengths:
Ability to understand customer’s needs and wants
Recognized and established brand name
Effective advertising capability
Weakness:
They have big gap between cubic capacities of its products..
Bikes are not attractive as compare to there competitors.
10/19/2013 Babasabpatilfreepptmba.com 33
BAJAJ
Strengths:
Highly experienced management.
Product design and development capabilities.
Extensive R & D focus.
Widespread distribution network.
High performance products across.
High export to domestic sales ratio.
Weakness:
Still has no established brand to match Hero Honda's Splendor.
Not a globally recognizable brand (unlike the JV partner Kawasaki)
10/19/2013 Babasabpatilfreepptmba.com 34
YAMAHA
Strengths:
Yamaha motors India is the subsidiary company of Yamaha motors ltd, which is the MNC company having a good brand name.
It is the one of the oldest company in the Indian market.
Bikes are available at very low price.
Weakness
Some Bikes are not attractive.
No presences in scooter segment.
No presences in above 150cc bike segment.
10/19/2013 Babasabpatilfreepptmba.com 35
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 √ √
10/19/2013 Babasabpatilfreepptmba.com 36
Hero Honda:
Considering various brand of Hero Honda i.e. Pleasure,
Hunk, Karizma, CBZ Extreme. Which give strong competition to
Honda i.e. Aviator, Activa, Unicorn, Stunner.
TVS:
Comparing to Honda Company, TVS Company has the
good market coverage and sales is more so they are strong
competitor and Honda should attack them.
BAJAJ:
Comparing to the Indian market the Bajaj’s has good
competition with their high CC brands to the Honda.
Yamaha:
With the innovative products of Yamaha it gives the neck
to neck Competition.
10/19/2013 Babasabpatilfreepptmba.com 37
Four P’s of Honda
Manufacturer
Product Price Place or
Distribution
Channel
Promotion
Honda Activa 41,000 Manufacturer
Dealer
Customer
TV Advertisement
Honda Dio 36,908 News Paper
Honda Eterno 36,526 Magazines
Honda Unicorn 57,647 Discount
Honda Shine 46,806 Festival Offers
Honda Aviator 43,104 Coupons
Honda Stunner 62,097 Snoopers
Pricing Strategy:
Competitive based pricing Strategy. 10/19/2013 Babasabpatilfreepptmba.com 38
Factors Influencing Buying
Behavior Factors High / Medium /Low
Impact
Justification
Cultural Factors High Impact Determination of wants &
Behaviors in the consumer
market. India is exposed to
values,humanitartian,people
loyalty, emotions, love &
Affection all these influences
Buying Behavior
Social Factors High Impact Social factors like family,
neighbors, Co-workers,
friends all these are
influencing on buyer
behavior.
10/19/2013 Babasabpatilfreepptmba.com 39
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.
10/19/2013 Babasabpatilfreepptmba.com 40
Buying Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Behavior
10/19/2013 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 Discover DTS-i125CC.
Purchase Decision:
Evaluating all product feature and price and his taste and preference he
decided to purchase.
Post Purchase Behavior:
After using this bike he feels well and satisfied by this bike.
10/19/2013 Babasabpatilfreepptmba.com 42
Conclusion The study which we conducted on the two wheeler automobile sector is a very important topic of automobile sector. Two wheeler automobile sector is the backbone of the automobile sector in India.
After deep research, analysis and getting information about company as formulated that The Honda Motorcycle Pvt.Ldt Company achieved success in the market. Through out the study we found the Honda having very new and modern technology in their bikes, they have a good name and fame in National and International Market.
MNC's like Yamaha, TVS, Hero Honda, Bajaj are also giving large competition. Concluding the performance of the company related to two wheeler sector in India, getting their growth and what are services they are providing after sales. But still there is a gap between 150cc to 225cc segment which is most preferable segment by youth today. With newer and better models are coming up customer has better and bigger choices to choose from. It is the competition on various aspects such as price, design technology, after sales services and even purchases offers, which provides to both buyer and seller. Even many dealers are in view that today Hero Honda and Bajaj, thrives on competition.
10/19/2013 Babasabpatilfreepptmba.com 43
10/19/2013 Babasabpatilfreepptmba.com 44
10/19/2013 Babasabpatilfreepptmba.com 45