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PRESENTATION ON HONDA COMPANY

THE POWER OF DREAMS


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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 MNCs 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 2 10/19/2013 Babasabpatilfreepptmba.com automobile brand.

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

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About Honda Motorcycle & Scooter India Pvt. Ltd.

Official Name Established

Honda Motorcycle & Scooter India Pvt. Ltd. 20th Aug, 1999

Place
Investment

Manesar, District Gurgaon, Haryana, India


Rs. 300 Crore

Representative
Factory Location Production Capacity

Mr. Shinji Aoyama, President & CEO


Manesar, District Gurgaon, Haryana, India 10,000,00 Units per Year

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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.

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Mission Statement

Human Use of Human Ideas

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Vision Statement

To Achieve the Most Admired Brand Status by 2010

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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.

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Core and Auxiliary Needs


Core Needs
Transportation

Auxiliary Needs
Speed, Fashion

Brands
Activa

Transportation
Transportation Transportation Transportation Transportation Transportation
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Income (Middle Level)


Professionals, Mileage Fashion, Speed, Royalty Professionals, Life Style Speed, Fashion, Mileage Speed, Uniqueness, mileage, Royalty
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Dio
Eterno Unicorn Shine Aviator Stunner
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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 doesnt do bulk production fully. Already it had experience and relaunched the product again.
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ORINETATION

EXTEND (FULLY,PARTIALY,NO T APPLICABLE)

JUSTIFICATION

Product Concept

Fully

The company has significantly improved quality product through a systematic task force approach. Seasonal offers and discount, festival offers. 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.
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Selling Concept

Partially

Marketing Concept

Fully

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ORINETATION

EXTEND (FULLY,PARTIALY,NOT APPLICABLE)

JUSTIFICATION

Societal Marketing Concept

Partially

Societal welfare, Sponsorship towards Educational Institutions.

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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
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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

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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

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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.

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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.
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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 StainlessSteel inner cables and TUFFUP outer 10/19/2013 Babasabpatilfreepptmba.com cables.

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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.
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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.

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Honda Aviator 102CC: Live Your Style


FEATURE: Unique style of front facial with large clear lens multireflector 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.
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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.
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Honda CBR 1000:


FEATURES: Sharper rear styling with revised shape and new taillight with clear lens Sharp exhaust muffler appearance with aluminium muffler cover New graphics and colours Improved crankshaft inertia mass

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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

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Competitor Analysis
Industry Competitors
Industry Competitor 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 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 25 Babasabpatilfreepptmba.com industry.

Hero Honda

TVS

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Industry

Competitor 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 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

BAJAJ

Yamaha

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Brand Competitors
Brands
Honda Activa, Honda Dio, Honda Aviator, Honda Eterno Honda Unicorn

Competitors
Hero Honda Pleasure, TVS Scooty Pep ,TVS Scooty, Bajaj Wave. Bajaj Pulsar DTS-i, Hero Honda CBZ Extreme, Hero Honda Achiever, Hero Honda Ambition.

Honda Shine

Bajaj Discover DTS-i, Hero Honda Glamours, TVS Victor GLX, Hero Honda Passion Plus, Hero Honda Splendor NXG, Yamaha Gladiator.
Bajaj Avenger DTS-i, Hero Honda Karizma, TVS Apache, Yamaha FZ.
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Honda Stunner
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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.

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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.

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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.

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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.

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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.
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TVS
Strengths: Ability to understand customers 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.
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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)
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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.
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Whom to Attack and Whom to Avoid


(S-Strong, W-Weak, C-Close, D-Distant, G-Good, B-Bad)
Competitor
Hero Honda TVS

Attack

Avoid

BAJAJ Yamaha

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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 Bajajs 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.

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Four Ps of Honda
Product Price Place or Distribution Channel Manufacturer Dealer Customer Promotion Honda Activa Honda Dio
Manufacturer

41,000 36,908

TV Advertisement News Paper

Honda Eterno
Honda Unicorn

36,526
57,647

Magazines
Discount

Honda Shine
Honda Aviator Honda Stunner

46,806
43,104 62,097

Festival Offers
Coupons Snoopers

Pricing Strategy: CompetitiveBabasabpatilfreepptmba.com based pricing Strategy. 10/19/2013

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Factors Influencing Buying Behavior


Factors Cultural Factors High / Medium /Low Impact High Impact Justification

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 like family, neighbors, Co-workers, friends all these are influencing on buyer behavior.

Social Factors

High Impact

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Factors

High / Medium /Low Impact High Impact

Justification

Personal Factors

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.

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Buying Decision Process


Need Recognition Information Search Evaluation of Alternatives

Purchase Decision
Post Purchase Behavior
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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.
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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 43 10/19/2013 Babasabpatilfreepptmba.com both buyer and seller. Even many dealers are in view that today Hero Honda and Bajaj, thrives on competition.

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