TABLE OF CONTENTS

Executive Summary
Chapter-1: Profile of the Firm/Company
Chapter-2: SWOT Analysis of the Company
Chapter-3: Functional Analysis of the Company
Chapter-4: Lessons Learnt
References/Bibliography
Appendices
CHAPTER 1: COMPANY PROFILE

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.

ORIGIN OF THE ORGANIZATION

Honda Activa is the first scooter model of HMSI for the Indian market.
It has revitalized the Indian scooter market after its launch in the year 2009.
Within the 1st year of its launch it has been awarded the 'Scooter of the Year'
by Overdrive magazine and also the 'Readers Choice Award' for the best
scooter by Auto India Magazine.
The Honda Activa has set a new standard for new era of scooters in India. It
has been developed exclusively for the Indian market after closely examining
the changing lifestyles, wants and needs of the consumers.
The Honda Activa has been designed to cater people who believe:
The conventional Indian scooter is too big and difficult to handle
The scooterette is too small and similar to mopeds
The Honda Activa is equipped with a number of new functions and
mechanisms, introduced for the first time in India. It is designed to offer greater
functionality, performance, economy, and ease of handling and maintenance
to a wide cross-section of the Indian society.
As responsible members of society and industry, we Honda Motorcycle and
Scooters India Pvt. Ltd. (HMSI), Manesar manufacturer of two wheelers,
recognize that well being of humans and conservation of earth's environment
is important. By adopting environmental management system, HMSI is moving
towards realization of Honda's green factory concept.
We shall endeavor to continually monitor, improve and conserve the
environment in which we operate. HMSI is committed to achieve,
environmental excellence in all its industrial activities, in the following ways:

 Conserving environment through preventing pollution at its source of

generation and strengthening our existing pollution control system.
Promoting conservation of resources such as energy, water, oil and grease
and other raw materials, by reusing, recycling and minimizing the waste
generation.
Complying with all applicable legal/regulatory requirements and strive to go
beyond wherever possible.
Regular monitoring and reviewing of environmental objectives and targets.
Increasing environment awareness and competence amongst our employees
and encourage vendors & dealers to adopt EMS.

HMSI will establish its environmental management system following PDCA

cycle and continuously work to make it more effective. The policy will be well
disseminated to our employees as well as to
public at large.
The Three Joys
In line with Honda's Philosophy, HMSI conducts all its daily activities in pursuit
of the following joys:
The Joy of Buying

The Joy of Selling

The joy of using world

The joy of selling world

class products

class products

The Joy of
Manufacturing
The joy of producing
high quality products

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.
Racing
Honda has always played an important role in motor sports, believing it to be
the springboard for technological advancement. Honda has made its mark in
the 500cc class Motorcycle Racing World Championship and more.

Technology
Our fundamental design philosophy seeks to maximize space and
comfort for people, while minimizing the space required for mechanical
components. With this aim in mind, Honda's R&D activities include productspecific development and research.

Safety

At Honda, we use a three-prong approach, based on preventing

accidents, minimizing injury in the unlikely event of an accident and our
Driving Safety Promotion operations. Honda's safety philosophy emphasizes
the development of appropriate technologies for its products, so as to
ultimately achieve maximum riding comfort for its customers. Honda was the
first manufacturer in Japan and India to develop and apply the anti-lock brake
system for the two wheelers.
Environment
Honda is unrivalled in making a conscious effort to lower the emissions of
every one of its vehicles, 2 and 4-wheelers. It is actively pursuing the
development of a 4-stroke engine in all 2-wheelers.

THEORETICAL BACKGROUND

CUSTOMER SATISFACTION
Customer satisfaction suffices the customer. Customer visualizes, perceives
and will have some expectations before making any purchase. If the product
meets customers expectations then he is satisfied. Customer will be satisfied
when the product meets the basic needs set and therefore utility of a product
is nothing but consumers estimation of products over all capacity to satisfy his
needs.
Customer satisfaction is a function of perceived performances and
expectations.

Dissonance reducing buying behavior

The customer might experience post purchase dissonance by noticing
disquieting features of product or by hearing favorable things about other
product. If performance of product does not satisfy perceived expectations, the
customer is dissatisfied, where he develops dissonance.

Post purchase satisfaction

When the customer is satisfied or delighted he will be dazzled. If the
product matches the expectations of customer he is satisfied. The customers
satisfaction is a function of closeness between the buyers product expectation
(E) and products perceived performance (P)

Post purchase actions

There is high probability of purchasing the product if the customer care
satisfied. Marketers should take keen interest in handling customers
dissatisfaction. Marketers job is to understand buyers behavior and aim

at satisfying customers. The satisfied customers will have brand loyalty and
strong affinity towards the product, so there is less scope of switching to other
brands. Satisfaction can be used as gauge for measuring effectiveness of
customer care of the organization. This increases the customer loyalty.

Customers buying decision process

Social factors, personal factors, and psychological factors influence
Customers buying decision process.

SOCIAL
Culture
Sub cultural
Cross-cultural
Social class
Reference groups
Family

PERSONAL
Age

PSYCHOLGICAL

Life style

Motivation

Occupation

Perception

Economic

Learning

Position

Personality
Attitude

BUYER

The company should ignore competitions and concentrate on customers oneon-one that will drive competition crazy. This can be most potent competitive

weapon. Customer satisfaction should be main objective, goal and marketing

tool for a company.
Tools for tracking & measuring the attitude of the satisfied customers
The alert companies set up systems to monitor the attitude of customers by
monitoring changing levels of customer satisfaction before they affect sales it
takes action. The main attitude tracking systems are:
1. Complaint & suggestions system
2. Customer panel
3. Customer surveys
4. Ghost shopping
5. Lost customer analysis
COMPLAINT AND SUGGESTIONS
A customer-oriented company records, analysis and responds to
complaints and tries to correct problems by new ideas and should welcome
complaints and try to correct problems by new ideas and should help
customers. Many hotels, restaurants and banks use this feedback method to
track and measure customer satisfaction.
Complaint handling strengthens buyer-seller relationship by building trust.

Follow the LIST method to handle complaints:

L-ISTEN TO COMPLAINNING CUSTOMERS

I-SOLATE CORE PROBLEM THROUGH QUESTIONS
S-OLVE PROBLEM FROM KEEPING CUSTOMER INFORMED
T-AKE FEEDBACK FROM CUSTOMERS TO MAKE SURE HE IS SATISFIED
CUSTOMER PANELS
Companies should run panels of customers who have to communicate
periodically. Panels are more representatives of the range of customer
attitudes. Panels would reveal kinds of people who responded to promotion.

CUSTOMER SURVEYS
It is conducted to learn how product has affected brand choice
behavior, what they thought of it and it is direct measure of satisfied
customers.
Companies periodically send questionnaires or make telephonic calls to a
random sample to prospective customers to evaluate satisfaction level on 5
point scale (very dissatisfied, dissatisfied, neutral, satisfied, very satisfied) and
ask about quality of service and various other aspects. Management compare
these ratings and can arrive at customer satisfaction level, measurement of

customers repurchase intention or willing ness to recommend the product to

others are also judged.

TAKE ACTION

PLAN CORRECTIVE MEASURE

MEASURE CUSTOMER OPINION

ANALYSE AND INTERPRET INFORMATION

MEASURES
GHOST SHOPPING
Customer oriented companies hire persons to pose as potential buyers
to report their findings on strong and weak points they experienced in buying
company and competitors product. The ghost shoppers even pose certain
problems to test whether the companys sales personal handle the situation
well.
RETENTION OF CUSTOMERS
Retaining a single customer is most important than attracting many new
customers. Company should reconfigure all planning processes towards
customers. Direct all marketing efforts towards meeting customer needs.
Create corporate strategy aimed at customer value.
Company can make customers happy by providing reliability,
responsiveness, assurance, empathy and tangible materials.

The company should create an emotional bondage between themselves and

customers. It is always more costly, pay less attention to competing brands,
buys other product that company latter adds to its line. Marketer should be
aware of profitable and non-profitable customers.

CUTOMERS WILL BE SATISFIED BY CONTINUOUS IMPROVEMENT

PROCESS AND MAINTAINING TOTAL QUALITY
Customers are judged of quality. Therefore, highest quality of products
should be companies objective maintaining zero defects or 100% quality.
Thus improves quality, inurn quality increases cost effectiveness.
Proven method and procedures should be adopted and applied
consistently.
Quality derivativeness should be compulsory, satisfying customers
requirements.
Companies should have quest for quality and should meet standards.
Quality should be in every stage from planning to production.
Quality should be in hallmark of the company. Company should promise
highest standard of product quality, safety, comfort and dependability.
Companies should have quest to find innovative ideas and featured or
attributes that will create excitement and desire and they should look
beyond what the customer says.

WHAT IS MARKET?
Market consists of all the potential customers sharing a particular need or
wants who might be willing and able to engage in exchange to satisfy that
need or wants

MARKETING
Marketing is so basic that it cannot be considered as a separate
function. It is the whole business seen from points the point of view of its final
results, that is from customer point of view business success is not
determined by the producer but by the customer
Peter.F.Drucker
Marketing consists of all activities by which a company adapts itself to
its environment
Ray Corey

WHAT IS MARKETING?
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating, offering and exchanging
products of value with others.
.
MARKET SEGMENTATION
The task of breaking the total market into segments that share common
properties is market segmentation. It is the process of identifying a group of
consumers with similar needs and producing a product that will meet those
needs at a profit.
Market segmentation will facilitate the firm to identify and find out the
additional benefit desired by the people to pay benefits and source where they
would like to buy it.

CONSUMER BEHAVIOUR
The term consumer behaviour refers to the behaviour that consumers display
in searching for purchasing, using, evaluating and disposing of products and
services that they expect will satisfy their needs. The study of consumer
behavior is the study of how the individuals make decisions to spend their
available resources (time, money, effort) on consumption related items. It
includes the study of what they buy, why they buy, when they buy it, where
they buy it and how they buy it and how often they use it.
WHY WE STUDY CONSUMER BEHAVIOUR?
There are various reasons as to why people study consumer behavior.
As consumers, we benefit from insights in our own consumption related
decisions: what we buy, why we buy, how we buy and the promotional
influences that persuade us to buy. The study of consumer behavior enables
us to become better and wiser consumers.
As marketers and future marketers, we are able to understand consumer
behavior, then we can predict how consumers are likely to react to the various
information, which help us to shape the marketing strategies accordingly to
gain a competitive advantage in the market.
Marketers have also observed a change in the psychological behavior
of the consumers. There is an increasing awareness among the consumers to
the changes taking place around them resulting in an urge to purchase various

goods and services. In other words, there is a positive buying motive shown by
the consumers. Consumer behavior was a relatively new field of study in the
mid to late 1960. This new discipline borrowed heavily from the concept
enveloping other scientific disciplines like psychology, sociology, etc. Many
early theories were based on the economic theory, on the notion that individual
act rationally to maximize their benefits in the purchase of goods and services.
The initial thrust to consumer research from a perspective here marketing
managers wanted to know the specific causes of consumer behavior. They
regarded it as an applied marketing science: if they could predict consumer
behavior they could influence. This approach has come to known, as
positivism and the people concerned with predicting consumer behavior are
known as positivists.

DEFINATIONS OF CONSUMER BEHAVIOUR

According to Walters & Paul Consumer behaviour is the process whereby
individuals decide what, when, where, how and from whom to purchase goods
and services.
Consumer may be defined as all the individuals and households that buy and
acquire goods and services for personal consumption.
Consumers differ in the age, income, taste and preference and educational
levels and therefore the marketers should identify the different consumer
groups and develop products and services according to the needs of the
consumers.

CONSUMER BEHAVOIUR MAY BE DEFINED AS

The process whereby the individuals decide whether what, when, how and
from whom to purchase goods and services.
IMPORTANCE OF CONSUMER BEHAVIOUR
1) Consumer behaviour is dynamic and changes continuously. According to
the consumer tastes and preference. Therefore a study of to analyze,
monitor and understand the consumer behaviour is very essential.
2) Only by studying consumer behaviour a businessman can solve the
problems faced by the consumers.
3) A study of consumer behaviour helps in effective marketing management.
4) Product decision regarding price, promotion and distribution can be taken
after studying the consumer behaviour and how they react to the product.
5) In an Indian market where changes take place very often, where the
government keeps on changing, it is essential to study the expectations of
the consumer based on the changes.
6) Consumer behaviour study helps a marketer in exploiting new
opportunities and meeting the challenges and requirements of an Indian
consumer.
Consumer behaviour can be said to be the melding of all those bodies of
knowledge concerning with human behaviour-behavioral sciences.

INDUSTRIAL BACK GROUND OF THE STUDY

Since time immemorial man has been trying to make things which would make
life easier. Among these is the transportation for himself and the goods.
The invention of wheel revolutionized the concept of transportation. Initially
human beings and animals were used for drawing carts but the zest to faster
and deliver large quantities in faster period resulted in constant improvement
of wheel driven carts.
In 1985 Gattlib Palmer and Kalt Benz invented the first petrol driven car. This
was the beginning of the trend, which revolutionized the concept of personal
transport. But with the passage of time the need for a fuel-efficient light weight
vehicle was felt.
Thus resulted in the invention of Europe, a car on two wheels. The two
wheelers came to recognize as a family vehicle and have retained this
character of date. Not only it is recognized to be useful mode of transportation
for a family it is also safe.

GROWTH OF THE INDUSTRY

In India two wheelers have demonstrated the ever since they come to know
been used in the country. So the manufacturers are all set to woo the
customers with the styles that surprise. Efficiency above expectations.
Durability and services more reliable and pricing.
Since the 1980s the market for personalized transport experienced a strident
growth in the country.

From January 1994 the market especially for two wheelers has so grown to
meet the demand of the customers of India. The production capacity has been
consistently increased.
Largely speaking three major categories of two wheeler started coming, the
Scooters, the Motorcycles and Mopeds. The recent trend is for the scooterette.

INDUSTRIAL BACKGROUND
Indian automobile industry is full of big names such as Maruti, Kawasaki, Tata,
TVS, Suzuki, Yamaha, Honda, and many others have swept away the
automobile market with high quality 2 and 4 wheelers. When we shift our
attention to manufacturers of bikes in India such as Hero, Honda, Yamaha,
TVS-Suzuki, Bullet and many others occupy pre-dominant positions in our
eyes. These have been gained big status to their entity with liberalization
opening gates of conservative Indian economy, many multinational companies
are collaborating with Indian companies to market share for their vehicles at
international level.

CHAPTER 2: SWOT ANLAYSIS

STRENGTH
Achievement: Retained the coveted position of World No 1 two-wheeler company
for the seventh consecutive year.

High Sales Growth: Honda experienced great growth

throughout its early days. Today Honda has an
assembly

line

of

nine

different

models

of

motorcycles available. Honda Activa is best

selling product in India.
Fuel economy: Over all fuel consumption by its products is less in compare to
other brands product. They have so far been able to give better mileage output.
Because of this Honda Activa has magical sales record.

Quality policy:

Total quality management is the chore philosophy of the

company and it is thus always focussed on product innovation and performance.

Service schedule: Honda offers free services on all its two-wheelers. Customer
should avail all these service within the stipulated time period or km range, whichever
condition gets satisfied earlier from the date of purchase. After the completion of free
services or its validity period one must continue availing paid services as per the
recommended service schedule

WEAKNESS
a) Less promotion: The promotions and ads of Honda are very less as compared
to its competitors.

High maintenance: Some of the products of Honda require high maintenance.

Lack of recycling scrap: It expected that by 2020 scrap generated by end of life
vehicles in India would be about 2.5 million tonnes and 40% of it will come from two
wheeler. But honda is not capable enough to recycle the scrap generated and may
impose environmental threat. TVS Company has this facility and is future threat to
this company as it can affect the future sales as well.

Opportunities:
a) High GDP & increasing income level of consumer:
Supported by strong demand impulses, especially in the manufacturing and
service sector, Indias gross domestic product grew at 8.9 per cent. This is the fourth
successive year in which the countrys growth has exceeded 8 per cent growth, and
India is now in a select club of 12 countries with a trillion dollar plus economy.
As a nation, India has prospered. People living in households with incomes
ranging from 2 lakh 10 lakh a year has grown from 15 million in 1991 to 100 million
in 2005-06. Not surprisingly, therefore, between 1991 and now, the two wheeler
market has grown more than four times.
Urban India is growing at a rapid pace. NCAER data for top 24 cities in India
shows migration to higher income levels growing at over 40 per cent per annum.
Prosperity in rural India is also a significant phenomenon, with 43 per cent of
households in middle and the high income groups coming from rural India.
More incomes per person, more persons will lead to a quadrupling of Indias
consumer markets in the next two decades, a 2007 study by McKinsey Global institute
has projected. And this will provide Company the ballast to sustain and consolidate its
leadership position.

Good will of the company: If the company utilizes the good will they have
gained so far from their customers, they can increase the sales performance by
economizing the cost and few technical renovation of the product. With new launch
they can be benefited at present market scenario Honda Activa has huge attraction
towards the younger generation because of its style, sporty look, and high accelerating
power and is stable at its feet even at high speeds.

Threats:
Finance assistance: Easy availability of finance is the main cause of sales growth
and any restriction will hamper its growth prospects.

Inflation: If inflation increases cost of raw material used in production will go high
and selling price may go high that may decrease demand of the two wheeler.

Technical renovation aspect: If they dont short out in the new launches and
give something extra in its engineering performance it may affect in demand of this
company product.

11. at are the sources the create awareness?

News papers

Television

Magazines

Show-room display

Exhibition

Postal catalogue

12. Occupation of the respondents

Student
Service
Business
Professional
13. Ratings for comfort
Excellent
Good
Average
Poor
14. Ratings for road grip
Excellent
Good
Average
Poor
15.ratings for engine performance

 Excellent
Good
Average
Poor

BIBLIOGRAPHY
Rajan Saxena (2009), Marketing Management, Prentice Hall of India
Anand M., Ramanathan S.K. and Viswanath R., The New Laws of Attraction,
Business World, January 2011
Grewal D. and Levy M. (2007), Marketing, Prentice Hall of India

Web Sites:
http://www.articlesbase.com/motorcycles-articles/honda-activa-price-in-india3911468.html
http://a2zbikesinindia.blogspot.com/2011/08/are-you-looking-for-buy-newhonda-bikes.html
www.honda2wheelersindia.com
www.activa.com
www.hondabick.com
www.thehindubusinessline.com