How to theory apply in to practical of marketing management to honda motors

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
2
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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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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

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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.

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5

Mission Statement

“Human Use of Human Ideas”

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6

Vision Statement

“To Achieve the Most Admired Brand
Status by 2010”

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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.

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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

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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.

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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

Marketing Concept

Fully

10/19/2013

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.


11

ORINETATION

EXTEND
(FULLY,PARTIALY,NOT
APPLICABLE)

Societal Marketing
Concept

Partially

10/19/2013


JUSTIFICATION

Societal welfare,
Sponsorship towards
Educational Institutions.

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
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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

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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

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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.

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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.
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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 StainlessSteel inner cables and TUFFUP outer
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cables.

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


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.

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20

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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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


22

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

10/19/2013


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 “

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24

Competitor Analysis
Industry Competitors
Industry

Hero Honda

TVS

10/19/2013

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
industry.

Industry

BAJAJ

Yamaha

10/19/2013

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


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

Honda Shine

Honda Stunner
10/19/2013

Bajaj Pulsar DTS-i, Hero Honda CBZ
Extreme, Hero Honda Achiever, Hero Honda
Ambition.

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

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.

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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


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


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


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


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


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)
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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.
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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

Hero Honda

√

√

TVS

√

√

BAJAJ
Yamaha

10/19/2013

G

√
√


B

Attack

Avoid

√
√

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


37

Four P’s of Honda
Product

Price

Honda Activa

41,000

Honda Dio

36,908

Honda Eterno

36,526

Honda Unicorn

57,647

Honda Shine

46,806

Honda Aviator

43,104

Coupons

Honda Stunner

62,097

Snoopers

Manufacturer

Place or
Distribution
Channel
Manufacturer

Promotion

TV Advertisement
News Paper

Dealer

Magazines
Discount

Customer

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

Festival Offers

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.

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39

Factors

High / Medium /Low
Impact

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


Justification

40

Buying Decision Process
Need Recognition
Information Search
Evaluation of Alternatives

Purchase Decision
Post Purchase Behavior
10/19/2013


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

10/19/2013


44

10/19/2013


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How to theory apply in to practical of marketing management to honda motors

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How to theory apply in to practical of marketing management to honda motors